Edenville Energy Share Discussion Threads

[therealtonythetiger] 26/8/2020 07:33

NICE.............

26 August 2020

EDENVILLE ENERGY PLC

("Edenville" or the "Company")

Sales and Marketing Agreement entered into with Strategic Partner

Anchor Tenancy of up to 5,000 tonnes per month confirmed

Edenville Energy Plc (AIM: EDL), the AIM quoted company operating the Rukwa Coal Project in southwest Tanzania (the "Project" or "Rukwa"), is pleased to announce that the Company's subsidiary Edenville International (Tanzania) Limited ("EITL") has entered into a Sales and Marketing Agreement with MarTek Global FZ-LLC ("MarTek"). MarTek is a Dubai-based sister company to Infrastructure and Logistics Tanzania Limited ("ILTL"), with both having the same principal shareholder.

The Sales and Marketing Agreement follows on from the recently announced Coal Mining Agreement ("CMA") with ILTL, which provided for a fixed rate mining and processing contract at Rukwa and which is scheduled to take effect from 1 September 2020. The CMA has a contract term of four years and will be automatically renewed for further period of four years unless terminated by either party (for further details please see RNS of 8 June 2020). The CMA was complimented by a recent US$1m Loan Agreement with ILTL, which further aligned the respective interests of both parties. The Sales and Marketing Agreement is the final piece in the previously announced strategic partnership.

Sales and Marketing Agreement



Highlights

Sales and Marketing Agreement comes into immediate effect and remains in place for a minimum of four years.

MarTek to provide an anchor tenancy at Rukwa, of 3,000 tonnes per month of washed coal, increasing to 5,000 tonnes per month over the first 12 months.

MarTek's purchase price for Rukwa coal, is the highest EITL has achieved to date and should provide the Company with a healthy margin on tonnes sold.

EITL and MarTek will share marketing and sales responsibilities in Tanzania for any sales above the anchor tenancy.

MarTek will have exclusive rights to market Rukwa coal internationally at the pre-agreed sales price, with any transport costs to be added to the sales price.

MarTek expects to leverage its logistics capabilities to supply these new markets.

EITL, MarTek and ILTL have agreed to focus on maximising production from Rukwa with a target of increasing capacity in the near term to circa 12,500 tonnes per month.

Initial marketing efforts from both MarTek and EITL suggests sufficient demand for Rukwa coal exists to utilise any additional supply.

Status of Operations at Rukwa

The anticipated despatches of coal have now commenced following the recent arrival of the first trucks at Rukwa.

Commenting, CEO of Edenville Alistair Muir, said:

"I am delighted to confirm this third and final contract is now in place and brings to conclusion the restructuring of our Tanzanian operations. We believe these agreements will collectively address the previous challenges, particularly in mining, processing and sales, that Edenville has experienced in recent years.

Feedback from ILTL and MarTek has been encouraging with respect to the appetite for Rukwa coal and all parties are now focused on adding to the order book, which has been underpinned by the anchor tenancy and MarTek's purchase price.

Whilst concluding all three agreements has taken longer than envisaged as a result of the COVID-19 pandemic, we are excited to have now reached this point. Mining and processing is underway again at Rukwa and I look forward to providing our shareholders with further updates in due course.

[zxie] 26/8/2020 07:13

I am delighted to confirm this third and final contract is now in place and brings to conclusion the restructuring of our Tanzanian operations. We believe these agreements will collectively address the previous challenges, particularly in mining, processing and sales, that Edenville has experienced in recent years.Feedback from ILTL and MarTek has been encouraging with respect to the appetite for Rukwa coal and all parties are now focused on adding to the order book, which has been underpinned by the anchor tenancy and MarTek's purchase price.Whilst concluding all three agreements has taken longer than envisaged as a result of the COVID-19 pandemic, we are excited to have now reached this point. Mining and processing is underway again at Rukwa and I look forward to providing our shareholders with further updates in due course.

[burtond1] 26/8/2020 07:07

Good news for @EdenvilleEnergy share holders...#EDL have signed the sales and marketing agreement which guarantees them enough off take to break even. It's the last of the 3 big points they have been promising.

[zxie] 26/8/2020 07:06

Very good RNS

[zxie] 25/8/2020 14:26

Three days of buying show red.

[ivan danko] 24/8/2020 23:41

Just what we need

[zxie] 24/8/2020 22:07

0.50+ soon

[zxie] 22/8/2020 11:25

9000 tonnes + 5000 tonnes Looks like a good income this year.

[zxie] 22/8/2020 11:22

The Company's auditors PKF Littlejohn LLP ("PKF") have confirmed that the impact of the Pandemic will delay their ability to obtain the relevant information required for their audit work. At the request of PKF, Edenvillle has therefore requested and received an extension to its filing deadline for the Company's Final Results from 30 June 2020 to 30 September 2020.

[zxie] 22/8/2020 11:16

11/12/2019 As a result of this the Company is pleased to announce it has signed two contracts to supply up to 6,000 tonnes and up to 3,000 tonnes respectively of washed coal per month to industrial customers in Rwanda and Uganda. In aggregate these two new contracts represent a supply of up to 9,000 tonnes per month, which accounts for approximately 75% of the current capacity of the recently refurbished wash plant. The new contracts will also complement the existing long-term contracts. the Company expects to be in a position to supply coal on an ongoing basis under these contracts before the end of Q1 2020. As previously reported, Edenville expect cashflow breakeven at Rukwa at around 4,500 tonnes of washed coal sold per month and has a target of achieving this by May 2020.

[zxie] 22/8/2020 10:42

Edenville will have a cash balance of approximately £375,000. When coupled with the proposed loan to be provided by ILTL, Edenville is comfortable it will have sufficient funds to bring Rukwa into a position where it is cashflow positive from operations.

[zxie] 21/8/2020 14:39

the people on the train get bumped around,bumped around bumped around,

[zxie] 21/8/2020 14:30

Nothing special today.....

[therealtonythetiger] 21/8/2020 12:13

Actual spread is 0.0447 - 0.0652 which is a 44% spread

[nasarsaddique] 21/8/2020 11:46

Actual spread is bid 0.045 to ask 0.050

[zxie] 21/8/2020 10:53

Nasal very good. I'm sure it will be the hot stock next week.

[nasarsaddique] 21/8/2020 10:45

Very interesting read from that link, especially the second paragraph of Alistair's comment...Commenting, CEO of Edenville Alistair Muir, said:"I'm delighted to announce the signing of the Loan Agreement, which further cements our relationship with ILTL. With a comparatively low interest rate for loans of this nature, no material additional charges, implementation fees, penalties or equity kickers, we believe it highlights the collaborative approach both EITL and ILTL are taking on the Project and provides Edenville with greater access to capital as required."The contract mining scenario under the CMA means the historic breakeven tonnages cited by Edenville are no longer relevant, as the Company now expects to be profitable from operations from the first tonne of washed coal that is produced. The focus of Edenville is therefore to expand the existing coal purchaser client base and to that end, the Company expects to announce shortly the Sales and Marketing Agreement with ILTL, which will bring with it not only an anchor tenancy of up to 5,000 tonnes per month of washed coal, but also further incentive for ILTL to use its network to source additional customers."I look forward to updating shareholders in the near term with respect to the restart of mining operations, the commencement of the CMA and the Sales and Marketing Agreement."

[zxie] 21/8/2020 10:32

EDL will be a hot stock next week.

[zxie] 21/8/2020 10:15

7 m Buyer come back

[zxie] 21/8/2020 09:25

3 trades 0.0499 is buy

[zxie] 21/8/2020 09:24

Maybe the last contract is signed.

[zxie] 21/8/2020 09:18

10% up today.Positive update soon .

[zxie] 20/8/2020 22:21

The next contract signing date .is the EDL stock price rise date. I think before 01 09 2020 at all thanks

[zxie] 20/8/2020 21:42

Hello tony EDL collects 1m in advance. It deducts interest and makes more profit. That's the marketing strategy. we ceo doing very good job.