19th Sep 2014 08:30
LONDON (Alliance News) - Edenville Energy PLC Friday said it has reached significant milestones at its Rukwa coal project in Tanzania as it reported a widened loss for the first half due to increased costs.
Edenville's pretax loss widened to GBP533,265 for the six months ended June 30, compared to a GBP300,560 loss in the first half of 2013. This is due to administrative expenses rising to GBP430,973, compared to GBP300,564 in the first six months of 2013. The company also paid GBP102,295 in respect of share-based payments.
The company does not generate any revenue and reported cash reserves of GBP995,483 at June 30. It also announced that no dividend would be paid.
The first-half "marked the achievement of several key milestones in Edenville's pursuit of developing a significant coal-to-power project at the Rukwa Coal Project in Tanzania," said Chairman Sally Schofield.
"Coal reserves are sufficient to support mining operations in addition to fuelling a power plant and the board of Edenville is currently assessing the viability of two significant coal supply options," it added. In November, Edenville announced that it will build a 100 megawatt power station to supply energy to Tanzania's new proposed power grid.
"We are very encouraged by the positive developments made during 2014 to date, both on the technical and financial viability of Edenville's Rukwa coal to power project and the government of Tanzania's absolute commitment to bringing electricity to large areas of the country," said Schofield.
Edenville's shares were up 9.1% to 0.0600 pence per share Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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