MC Mining run-of-mine coal production at Uitkomst is 7% higher
MC Mining for the quarter ended 31 March 2022 reports that the run-of-mine (ROM) coal production at Uitkomst was 7% higher than the March 2021 quarter at 124,144 tonnes (t) (FY2021 Q3: 115,944t).
The Company recorded 71,361t of coal sales during the quarter (FY2021 Q3: 62,301t), comprising 62,751t (FY2021 Q3: 53,512t) of high grade metallurgical and thermal coal and 8,610t (FY2021 Q3: 8,789t) of lower grade middlings coal.
Revenue per tonne increased to $110/t (FY2021 Q3: $72/t) due to the much higher API4 coal prices recorded during the quarter.
The Integrated Water Use Licence (IWUL) applications lodged with the Department of Water & Sanitation (DWS) in Q4 CY2020 for the Uitkomst Colliery and nearby Wykom siding were granted in April 2022;
Limited activities were undertaken at the Company’s Makhado hard coking coal project (Makhado Project or Makhado), Vele semi-soft coking and thermal coal colliery (Vele Colliery or Vele) and Greater Soutpansberg Projects (GSP) during the quarter.
MC Mining entered into a staged R86,036,691 (approximately $5.7 million) Convertible Advance and Subscription Agreement (the Agreement) with South African based mining group, Senosi Group Investment Holdings Proprietary Limited (SGIH) and under the terms of the Agreement, received R46,036,691 (approximately $3.0 million) during the quarter.
The completion of the Makhado BFS is a significant milestone and confirms the project’s robust economics. The BFS is based on the project plan with the lowest capital cost options and results in Makhado’s ROM coal being transported to the Vele Colliery for processing for the entire life of mine.
The forecast hard coking coal (HCC) and thermal coal prices used in the BFS were sourced from independent advisors and are considerably lower than current index prices, reflecting Makhado’s significant upside. The BFS is a key milestone in the funding process and the Company is progressing several alternative strategies to raise the required funding with a target date to complete the financing during Q3 CY2022 (for further details refer announcement made 13 April 2022).
