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.