MCM Uitkomst production marginally lower, Makhado loan extended

MC Mining Limited in its activities report for the quarter ended 31 December 2021 reports the demand for coal continued during the quarter, leading to a rise in the price of quality South African export thermal coal with average API4 prices improving to $163/t compared to $73/t recorded in Q2 FY2021 (FY2022 Q1: $139/t). Demand for hard coking coal also increased with average prices of $368/t compared to $111/t in Q2 FY2021.


  • Run-of-mine (ROM) coal production at Uitkomst was marginally lower than the December 2020 quarter (107,188 tonnes (t) vs. FY2021 Q2: 108,945t);
  • 49,063t of coal sales during the quarter (FY2021 Q2: 81,486t) comprising 43,280t (FY2021 Q2: 72,656t) of high grade metallurgical and thermal coal and 5,783t (FY2021 Q2: 8,830t) of lower grade middlings coal;
  • Revenue per tonne increased to $111/t (FY2021 Q2: $66/t) due to the much higher API4 coal prices recorded during the quarter;
  • 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;
  • Subsequent to the end of the quarter, the Industrial Development Corporation of South Africa (IDC) extended the repayment date for the R160 million ($10.3 million) loan plus accrued interest from 31 January 2022 to 30 November 2022;
  • The terminal drawdown date of the additional R245 million ($15.8 million) IDC term loan for the development of Phase 1 of Makhado was extended from 31 January 2022 to 30 November 2022, with the drawdown remaining subject to the IDC re-affirming its due diligence;
  • Makhado Project composite debt/equity funding initiatives, including detailed due diligence processes by potential funders, continued during the quarter;
  • Appointment of shareholder representative Non-Executive Director Mr Junchao Liu, following the retirement of Mr Shangren Ding; and
  • Available cash and facilities at quarter-end was $3.2 million ($3.5 million at 30 September 2021) and restricted cash was $0.03 million.

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