MC Mining’s Uitkomst Colliery produced 444,984 tonnes in FY2023
MC Mining in its H1 2023 report says the loss after tax for the period decreased by 79% to $4.4 million after tax of $20.8 million. Contributing to the loss of $4.4 million were non-cash charges which decreased by 80% to $3.7 million (FY2022: $18.3 million).
Godfrey Gomwe, Chief Executive Officer and Managing Director of MC Mining, commented: “MC Mining made pleasing progress during FY2023 including the completion of the A$40 million Rights Issue, the recommencement of operations at the Vele Colliery and the detailed planning for the construction of the Makhado Project. The conclusion of the Marketing Agreement ensured the Uitkomst Colliery could take advantage of favourable international thermal coal prices during H1 FY2023.
MC Mining’s Uitkomst Colliery produced 444,984 tonnes (t) (FY2022: 470,597 t) of run of mine (ROM) coal during the twelve months to 30 June 2023, 5% lower than the previous year. A further 50,490t (FY2022: 15,534t) of high-quality coal remained on stockpile at Uitkomst at the end of June 2023.
The increase in international thermal coal prices in H1 CY2022 resulted in entering a Coal Sales & Marketing Agreement (Marketing Agreement) with Overlooked Collieries (Pty) Ltd, a related party.
Uitkomst sold 241,366t of coal in FY2023 (FY2022: 225,096t) comprising 230,181t (FY2022: 199,065t) of premium duff and sized peas and 11,185t (FY2022: 26,031t) of high ash, coarse discard coal.
The Marketing Agreement provided access to the more lucrative international market and Uitkomst generated sales revenue of $34.2 million (FY2022: $23.5 million) for the year with $11.4 million (FY2022: $nil) derived from export coal sales.
The sales of Uitkomst coal on the international market resulted in net revenue per tonne increasing to $142/t (FY2022: $104/t).
The rise in Uitkomst’s costs per saleable tonne to $123/t (FY2022: $85/t) is mainly due to increase in costs for explosives, employee, logistics and port costs amongst others, while the increased incidence of load shedding resulted in significantly higher energy costs associated with the use of generators at the mine.
