Wrap Text
Half-Year Results for period ended 31 December 2024
MC Mining Limited
Previously Coal of Africa Limited
(Incorporated and registered in Australia)
Registration number ABN 008 905 388
ISIN AU000000MCM9
JSE share code: MCZ
ASX/AIM code: MCM
ANNOUNCEMENT
14 March 2025
HALF-YEAR RESULTS FOR PERIOD ENDED 31 DECEMBER 2024
MC Mining Limited (MC Mining or the Company) is pleased to announce its interim financial report
for the six months ended 31 December 2024. All figures are denominated in United States dollars
unless otherwise stated and the full interim report is available on the Company's website,
https://www.mcmining.co.za/all-categories?task=download.send&id=1861:interim-results-
2024.
Financial review
• The loss after tax for the Period increased by 40% to $8.4 million or 1.83 cents per share (FY2024
H1: loss after tax of $6.0 million or 1.45 cents per share);
• Revenue for the Period decreased by 67% to $8.4 million (FY2024 H1: $25.2 million) and cost of
sales decreased by 48% to $12.5 million (FY2024 H1: $24.1 million) resulting in a decrease in gross
profit (FY2025 H1: gross loss of $4.2 million vs FY2024 H1: gross profit of $1.1 million);
• Administrative expenses decreased by 55%, from $9.7 million in FY2024 H1 to $4.4 million in the
reporting period.
• Finance costs from borrowings and finance leases increased by 19% to $0.9 million (FY2024 H1:
$0.8 million);
• Cash and cash equivalents of $3.9 million compared to cash and cash equivalents of $0.2 million
at 30 June 2024.
• Net asset value increased slightly to $75.6 million from $75.4 million in 30 June 2024;
• Headline loss per share increased by 26% from 1.45 cents in FY2024 H1 to 1.83 cents in FY2025
H1;
• Basic and diluted loss per share increased by 26% from 1.45 cents in FY2024 H1 to 1.83 cents in
FY2025 H1; and
• No dividend was declared for six months ended 31 December 2024 (FY2024 H1: nil).
Operational review
Safety
• Health and safety remains the highest priority, with the goal being to achieve zero harm. The
Company recorded one fatality (FY2024 H1: nil) and two lost-time injuries (LTIs) were recorded
during the Period (FY2024 H1: Nil LTIs).
Uitkomst Colliery
• The operational results for the Uitkomst metallurgical and thermal coal colliery (Uitkomst or
Uitkomst Colliery) compared to the preceding period are detailed below:
FY2025 H1 FY2024 H1 %
Production tonnages
Uitkomst ROM (t) 185,558 268,464 (31%)
Inventory volumes
High quality duff and peas at site (t) 4,911 14,422 (66%)
Sales tonnages
Own ROM (t) 108,776 202,340 (46%)
Middlings sales 13,017 375 >100%
121,793 202,715 40%
Financial metrics
Net revenue/t ($) 69 80 (14%)
Production costs/saleable tonnes ($)^ 93 55 68%
^all costs are incurred in South African Rand
• The Uitkomst Colliery produced 185,558 tonnes (t) (FY2024 H1: 268,464t) of run of mine (ROM)
coal during the six months to 31 December 2024, 31% lower than the previous period;
• 4,678t (FY2024 H1: 14,422t) of high-quality coal was stockpiled at Uitkomst at the end of
December 2024;
• Uitkomst sold 121,793t of coal in FY2025 H1 (FY2024 H1: 202,715t) comprising 108,780t (FY2024
H1: 202,340t) of premium duff and sized peas and 13,017t (FY2024 H1: 375t) of high ash, coarse
discard coal. Uitkomst generated sales revenue of $8.4 million (FY2023: $16.3 million) for the
period;
• The Uitkomst net revenue per tonne decreased to $69/t (FY2024 H1: $80/t) primarily due lower
production as a result of geological challenges; and
• The lower coal production volumes contributed to the 68% increase in production costs per
saleable tonne (FY2025 H1: US$93/t vs. FY2024 H1: US$55/t)
Makhado Project
• MC Mining's flagship Makhado steelmaking hard coking coal (HCC) project has the required
regulatory approvals and surface rights over the mining and processing areas and is 'shovel ready';
• The development of Makhado is expected to deliver positive returns for shareholders and position
MC Mining as South Africa's pre-eminent steelmaking HCC producer resulting in obvious
advantages for domestic steel producers;
• Select early works continued on site at the Makhado Project, with the erecting of power supply
lines ongoing, commencement of construction of a temporary bridge across the Mutamba River
to provide access for construction works and the commencement of bulk earthworks related to
the coal handling and preparation plant (CHPP) terrace. Environmental and Process Technologies
Proprietary Limited (Enprotec), continued with the detailed designing of the CHPP, along with
early order placements for long-lead items related to the CHPP.
Vele Aluwani Colliery
• The colliery did not produce saleable thermal coal during the reporting period (FY2024 H1:
119,799t); and
• Operations at Vele remain suspended.
Greater Soutpansberg Projects
• The three GSP is the Group's long-term greenfield development area and contains over 7.0 billion
gross tonnes in situ of inferred HCC, SSCC and thermal coal resources. The exploration and
development of the GSP is the catalyst for MC Mining's long-term growth and positions the
Company to be a potential long-term significant domestic and export steelmaking coal supplier;
• The mining rights for the Mopane, Generaal and Chapudi project areas were legally executed
during FY2024. Following this, the studies required for the environmental and water use licences
are expected to commence following the construction of the Makhado Project; and
• Exploration and development of the GSP could position the Company to being a significant
steelmaking coal supplier for both the domestic and export markets.
Corporate features
• On 13 December 2024, the Competition Commission issued a Merger Clearance Certificate for the
proposed transaction with Kinetic Development Group Limited (KDG) with conditions;
• MC Mining Limited has reached an agreement with Hong Kong Stock Exchange (HKSE) main board
listed KDG (1277.HK) the terms of which provide that KDG (or its designee) will subscribe for a
total of 51% of the post transaction issued share capital of MC Mining;
• MC Mining entered into a A$1.0m (US$0.7m) unsecured loan facility with Eagle Canyon
International Group Holding (Hong Kong) Limited;
• Appointment of Christine He as Interim Managing Director & Chief Executive Officer of MC Mining,
occurred effective from 1 July 2024;
• Appointment of Muhui (Chris) Huang as Non-Executive Director of MC Mining;
• Appointment of Bill Pavlovski as Independent Non-Executive Director of MC Mining; and
• Appointment of Dr Steele West as Independent Non-Executive Director of MC Mining
Subsequent events
On the 23 of January 2025 the Shareholders passed the following resolutions to:
• Ratify the prior issue by the Company of 62,102,002 new Shares to Kinetic Crest Limited, a
wholly owned subsidiary of Kinetic Development Group Limited.
• Approve the acquisition by Kinetic Development Group Limited (and its Associates) of such
number of Second Closing Shares that will result in Kinetic Development Group Limited (and its
Associates) holding 51% of the Company's issued and outstanding Shares and having a Relevant
Interest in a total of 51% of all of the Company's issued and outstanding Shares on the Second
Closing.
• Approve the acquisition by the Company of a Relevant Interest in the Second Closing Shares on
the Second Closing as a consequence of the Company's entry into the Proposed Escrow Deed, on
the terms and subject to the conditions set out in the Explanatory Statement.
Kinetic Development Group Limited has made payments amounting to $20,000,000 up to the date of
the release of the 31 December 2024 interim financial report, for the purchase of the MC Mining
shares as part of the share subscription agreement.
The Industrial Development Corporation of South Africa Limited extended the date for repayment of
the R160 million loan plus interest thereon, to 30 June 2025, on condition that the Company make a
payment of ZAR10,000,000 to the IDC. The repayment was made.
Authorised by
Yi (Christine) He
Interim Managing Director & Chief Executive Officer
This announcement has been approved by the Company's Disclosure Committee.
All figures are in South African rand, United States dollars or Australian dollars unless otherwise stated.
This announcement has been approved by the Company's Disclosure Committee.
For more information contact:
Bill Pavlovski Company Vision Corporate (Pty) bill.pavlovski@mcmining.co.za
Secretary Ltd
Company advisers:
Marion Brower Financial PR R&A Strategic +27 11 880 3924
(South Africa) Communications
BSM Sponsors Proprietary Limited is the nominated JSE Sponsor
About MC Mining Limited:
MC Mining is an ASX/JSE-listed coal exploration, development and mining company operating in South Africa.
MC Mining's key projects include the Uitkomst Colliery (metallurgical coal), Makhado Project (hard coking coal).
Vele Colliery (semi-soft coking coal), and the Greater Soutpansberg Projects (coking and thermal coal).
Regulatory requirements
This short form announcement, which is the responsibility of MC Mining's directors, is only a summary of
information in the full announcement and does not contain full or complete details. Any investment decisions
by shareholders and/or investors should be based on consideration of the full
announcement.
The full announcement can be found at:
https://senspdf.jse.co.za/documents/2025/jse/isse/mcze/hy2025.pdf
The full announcement is also available for viewing on the company's website at
https://www.mcmining.co.za/all-categories?task=download.send&id=1861:interim-results-2024 or a
copy may be requested in person, at the company's registered office or the office of the sponsor, at no charge,
during office hours. Copies of the full announcement may also be requested from the Company's group
investor relations at investor@mcmining.co.za.
The information in this announcement has been extracted from the interim reviewed group financial
results for the half-year ended 31 December 2024, but the short-form announcement itself has not
been reviewed by the Company's auditors.
Forvis Mazars Assurance Pty Limited, the group's independent auditor, has reviewed the consolidated interim
financial statements of the group from which the abridged consolidated results contained in this report have
been derived, and has expressed an unmodified review opinion on the consolidated interim financial
statements but have drawn attention to a material uncertainty around the Going Concern, in note 2 of the
interim reviewed group financial results.
Forward-looking statements
This Announcement, including information included or incorporated by reference in this Announcement, may
contain "forward-looking statements" concerning MC Mining that are subject to risks and uncertainties.
Generally, the words "will", "may", "should", "continue", "believes", "expects", "intends", "anticipates" or
similar expressions identify forward-looking statements. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from those expressed in the forward-looking
statements. Many of these risks and uncertainties relate to factors that are beyond MC Mining's ability to control
or estimate precisely, such as future market conditions, changes in regulatory environment and the behaviour
of other market participants. MC Mining cannot give any assurance that such forward-looking statements will
prove to have been correct. The reader is cautioned not to place undue reliance on these forward-looking
statements. MC Mining assumes no obligation and does not undertake any obligation to update or revise
publicly any of the forward-looking statements set out herein, whether as a result of new information, future
events or otherwise, except to the extent legally required.
Date: 14-03-2025 01:30:00
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