Edenville Energy PLC Rukwa Update (1261O)
06 Octubre 2021 - 1:00AM
UK Regulatory
TIDMEDL
RNS Number : 1261O
Edenville Energy PLC
06 October 2021
6 October 2021
Edenville Energy Plc
("Edenville" or the "Company")
Rukwa Update
Edenville Energy Plc (AIM: EDL) is pleased to provide an update
regarding the Company's Rukwa Coal Project ("Rukwa" or the
"Project") in southwest Tanzania.
Highlights
- Mining and processing ramping up at Rukwa following site preparation
- Over 400 tonnes of coal processed in last two weeks of September 2021
- Targeting processing 3,000 tonnes a month of washed coal in the current quarter
- Significant global coal price increase has further boosted interest and economics
Following the closing of the Company's GBP2.475 million capital
raise at the end of May 2021, Edenville has been focused on
preparing the site to meet the expected demand for Rukwa coal. This
work focused primarily on overburden pre-strip, with a total of
13,000 tonnes of material being removed in September 2021. This has
also enabled a further 4,000 tonnes of Run of Mine ("ROM") coal to
be delivered to the existing wash plant stockpile. More
importantly, it has now provided access on an ongoing basis to coal
from the Northern Zone of the Rukwa deposit.
Following the overburden removal and the delivery of the
remaining equipment and personnel necessary to recommence
operations, during the second half of September 2021 the Company
was able to run over 400 tonnes of coal through the wash plant.
Mining and processing operations remain ongoing. The production
achieved during the second half of September 2021 is already
similar to the whole of H1 2021, as detailed in the Company's
recently released interim results to 30 June 2021.
As previously announced, during Q3 2021, Edenville received an
order for up to 3,500 tonnes per month of washed coal, which the
Company believes will result in an average monthly delivery of at
least 2,000 tonnes per month. The Company's focus is to bring
operations to an initial rate of processing 3,000 tonnes of washed
coal per month in the current quarter. This will enable the Company
to also satisfy an order of 600 tonnes per month of washed coal
from one of its long-standing customers, who has advised Edenville
it would like to recommence deliveries from November 2021 following
a COVID-related forced closure during 2021. In addition, following
recent positive trial shipments, the Company is in the process of
providing further sample sizes to a potential customer in East
Africa who has indicated a demand for 3,000 tonnes per month of
washed coal upon confirmation of suitability. The existing
processing facilities have a capacity of 12,500 tonnes per month
and accordingly the Company is confident it will be able to satisfy
any additional demand beyond the aforementioned orders.
Further discussions have also been held with senior advisors to
the Tanzanian Government during September 2021, with follow up
meetings scheduled for October 2021. The Company has long held the
belief that Rukwa has the potential to help address the power
supply deficit within Tanzania and looks forward to continuing the
discussions later this month.
In addition, as previously announced, the Company continues to
review additional investment and operational opportunities,
following its recapitalisation earlier this year.
Further announcements will be made as appropriate.
Alistair Muir, CEO of Edenville, commented: "I am pleased to
report operations are being ramped-up at Rukwa and I appreciate for
many investors the delay has been frustrating. However, the Company
elected to take a prudent approach, firstly recapitalising the
Company and then ensuring operations and customers were in place
before committing its resources to production. Those familiar with
the Company will note that the production achieved during the
second half of September 2021 is already similar to the whole of H1
2021, as outlined in the Company's recently released interim
results to 30 June 2021.
"We believe the Company is now well positioned to meet its
internal production targets for the year end. Moreover, as
additional customers are identified, Rukwa has the potential to
expand operations further to meet this increased demand. Given the
significant uplift in global coal prices, which have more than
doubled during the last 12 months, we believe the economics and
outlook for Rukwa have never been better."
For further information please contact:
Edenville Energy Plc
Jeff Malaihollo - Chairman
Alistair Muir - CEO +44 (0) 20 3934 6630
Strand Hanson Limited
(Financial and Nominated Adviser)
James Harris
Rory Murphy +44 (0) 02 7409 3494
Brandon Hill Capital Ltd
(Broker)
Oliver Stansfield
Jonathan Evans +44 (0) 20 7936 5200
IFC Advisory Limited
(Financial PR and IR)
Tim Metcalfe
Florence Chandler +44 (0) 20 3934 6630
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018.
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