LONDON (Alliance News) - Edenville Energy PLC Wednesday said discussions with a potential partner for its flagship project are continuing and said it will examine "all possible avenues" to create shareholder value out of the project as the company reported a slightly narrower pretax loss in 2014.
The company, which is focused on developing the Rukwa coal-to-power project in Tanzania and does not currently generate any revenue, reported a pretax loss of GBP2.3 million in 2014, slightly narrower from the GBP2.4 million loss in 2013.
Edenville reported higher administrative costs of GBP895,305 from GBP638,868 and higher share based payments totalling GBP147,977 from GBP39,797, but these increases were more than offset by impairments falling to GBP1.3 million from GBP1.7 million.
The Rukwa coal-to-power project is looking at feeding a 120 megawatt plant for at least a 30-year period with financial metrics that are "very encouraging", Edenville said. The cost for the power plant and mine development is expected to be around USD175 million with a net present value ranging from USD220 million to USD322 million.
"The absolute focus on the Rukwa coal project, Edenville's key asset, better positions the company in the lengthy and complex discussions with potential partners as we seek the best outcome for shareholders," said the company.
Edenville said it will try to secure the mining license, gain a partner and source financing for the project in 2015.
In that regard, Edenville said Shandong Electric Power Construction No 2 Co, a potential partner for the Rukwa project, will be carry out a site visit in July to further evaluate partnership opportunities with Edenville.
"We are examining and moving forward on all possible avenues to increase value and create revenue from the project whether that is in the form of a power plant development or from sales to other end users for the coal in region should the opportunity arise," said the company.
The Rukwa coal project covers 16 tenements with the central block of the project containing 10 of the tenements which the project will focus around. Kibo Mining PLC is the operator of the project with a 100% interest, but Edenville Energy has a 90% interest in the Mkomolo, Namwele and Muze coal deposits located within the tenements.
Edenville shares were up 4.1% to 0.0781 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Kibo Energy (KIBO)