MC Mining has provided its audited financial statements for the year ended 30 June 2021 declaring the loss after tax for the Period reduced to $11.8 million (FY2020: loss after tax of $12.2 million);
Revenue of $20.7 million (FY2020: $17.2 million) and cost of sales of $20.3 million (FY2020: $18.3million) resulted in a gross profit of $0.4 million (FY2020: gross loss of $1.1 million) for the Period.
The Vele semi-soft coking and thermal coal colliery (“Vele Colliery” or “Vele”) remained on care and maintenance and the carrying value of the colliery was assessed during the Period, resulting in an impairment of $6.5 million (FY2020: nil);
The Uitkomst colliery produced 490,100 tonnes (t) (FY2020: 431,354 t) of run of mine (“ROM”) coal during the twelve months to 30 June 2021, up 14% on the previous year;
Uitkomst sold 292,261t of coal in FY2021 (FY2020: 254,193t) comprising 265,879t (FY2020: 228,206t) of premium duff and sized peas and 26,382t (FY2020: 25,987t) of middlings (high ash, coarse discard coal) – generating sales revenue of $20.7 million (FY2020: $17.2 million);
The API4 coal price improved during FY2021, increasing from $53/t in July 2020 to $115/t at the end of the 2021 financial year;
Uitkomst’s production costs per saleable tonne reduced by 5% to $60/t (FY2020: $63/t) as a result of cost containment measures and increased production;
Makhado hard coking coal project (“Makhado Project” or “Makhado”) composite debt/equity funding initiatives continued during the Period with a number of parties undertaking due diligence;
Activities at the Company’s Vele Colliery and Greater Soutpansberg Projects (“GSP”) were limited during FY2021 to contain costs. The Vele processing plant is to be refurbished and recommissioned as part of Phase 1 of the Makhado Project; and
The Department of Mineral Resources & Energy granted the mining right for the Mopane Project, the third and final mining right which completes the compilation of the total GSP project area.