Wrap Text
Activities report for the quarter ended 30 June 2024 (FY2024 Q4) for MC Mining Limited and its subsidiary companies
MC Mining Limited
Previously Coal of Africa Limited
(Incorporated and registered in Australia)
Registration number ABN 008 905 388
ISIN AU000000MCM9
JSE share code: MCZ
ASX/AIM code: MCM
ANNOUNCEMENT
31 July 2024
ACTIVITIES REPORT FOR THE QUARTER ENDED 30 JUNE 2024 (FY2024 Q4) FOR MC MINING LIMITED (MC Mining or the Company)
AND ITS SUBSIDIARY COMPANIES
HIGHLIGHTS
Operations
• Health and safety remains a priority, with the goal being to achieve zero harm. The Group
recorded one lost-time injury (LTI) during the quarter (FY2024 Q3: one LTI);
• Run-of-mine (ROM) coal production at the Uitkomst steelmaking and thermal coal mine
(Uitkomst Colliery or Uitkomst) was 4% lower than the June 2023 quarter at 113,977 tonnes (t)
(FY2023 Q4: 118,469t);
• Conducted a three-month-trial exclusive marketing agreement with Paladar Resources (Pty) Ltd
(Paladar) for selling the export quality coal produced by Uitkomst. During the trial period all
Uitkomst high-grade coal inventories were sold by the end of the quarter (FY2023 Q4: 55,363t
remaining inventory). The trial period is concluded;
• Uitkomst sold 62,274t of high-grade coal during the quarter (FY2023 Q4: 51,036t) and 10,099t
sales of lower grade middlings coal (FY2023 Q4: 2,453);
• Limited activities were undertaken at the Makhado steelmaking hard coking coal project
(Makhado Project or Makhado) during the quarter;
• Limited activities were undertaken at the Company's Vele Aluwani semi-soft coking and thermal
coal colliery (Vele Colliery or Vele) and Greater Soutpansberg Projects (GSP); and
• Depressed thermal coal prices continued with average prices of US$108/t for the three months,
compared to US$97/t in Q3 FY2024 and US$115/t in Q4 of FY2023. Premium steelmaking hard
coking coal (HCC) prices, however, remained elevated, averaging US$243/t in the quarter (FY2023
Q4: US$250/t).
Corporate
• MC Mining entered into a ZAR20 million (US$1.1 million) Loan Facility with Dendocept (Proprietary)
Limited in June 2024;
• MC Mining cancelled its AIM (London) stock exchange listing, effective 19 June 2024;
• The completion of the previously announced off market Offer process resulted in a change of
control of the Company for the purposes of the vesting of Performance Rights and Options
previously granted to senior MC Mining employees. Following this, 6,122,605 new ordinary shares
of no par value and 8,000,000 Options were issued to senior MC Mining employees;
• Resignation of Tony Bevan and appointment of Blagojce (Bill) Pavlovski as Company Secretary of
MC Mining occurred during May 2024;
• Resignation of Godfrey Gomwe as Managing Director & Chief Executive Officer of MC Mining,
occurred and became effective as of 30 June 2024;
• Resignation of Andrew Mifflin and Julian Hoskin as Non-Executive Directors of MC Mining occurred
as of 30 June 2024; and
• Available cash and facilities of US$1.2 million at the period end (FY2024 Q3: US$2.2 million).
Events subsequent to the end of the quarter
• Appointment of Christine He as interim Managing Director & Chief Executive Officer of MC Mining,
occurred effective from 1 July 2024;
• Appointment of Doug Abrahams as Non-Executive Director of MC Mining occurred on 1 July 2024;
• MC Mining entered into a A$1.0m (US$0.7m) unsecured loan facility with Eagle Canyon
International Group Holding (Hong Kong) Limited; and
• The trial period for the marketing agreement with Paladar expired at the end of July 2024 and
Uitkomst has opted not to extend the arrangement.
DETAILED QUARTERLY OPERATIONS REPORTS
Uitkomst Colliery – Utrecht Coalfields (84% owned)
One LTI was recorded during the quarter (FY2024 Q3: One LTI) and the colliery has renewed its focus
on leading indicators to improve safety performance.
Uitkomst produced 113,977t of ROM coal during the quarter (FY2023 Q4: 118,469t). The 4% decrease
in ROM coal production is due to unfavorable geological conditions and underground equipment
availability challenges during the period.
The Uitkomst Colliery executed a three-month trial, coal marketing exclusivity agreement with Paladar
from 1 May 2024. In terms of the agreement, Paladar would pay 90% of the $87/t sales price in the
week following production, with the balance due within 30 days. During the quarter, Uitkomst sold
62,274t (FY2023 Q4: 51,036t) of high-grade duff and peas coal, including sales to Paladar. The colliery
also sold a further 10,099t of middlings coal during the three months (FY2023 Q4: 2,453t). Due to the
sales of coal to Paladar, the colliery had nil t (FY2023 Q4: 50,491t) of high-grade coal inventory at the
end of the June 2024. Uitkomst did not extend the three-month Paladar trial period which ended on
31 July 2024.
The production costs per saleable tonne were 7% higher than the comparative period (FY2024 Q4:
US$82/t vs. FY2023 Q4: US$90/t). The production cost per saleable tonne were adversely affected by
inflationary pressures as well as ZAR:US$ exchange rate movements.
Quarter to Quarter to
end-Jun end-Jun
2024 2023 %?
Production volumes
Uitkomst ROM (t) 113,977 118,469 (4%)
Inventory volumes
High quality duff and peas (t) - 55,363 (100%)
Sales tonnages
High quality duff and peas (t) 62,274 51,036 22%
Middlings sales (t) 10,099 2,453 312%
72,372 53,489 35%
Quarter financial metrics
Net revenue/t (US$) 74 104 (29%)
Net revenue/t (ZAR) 1,383 1,946 (29%)
Production cost/saleable tonne (US$)^ 96 90 7%
^ costs are all South African Rand (ZAR) based
Makhado Hard Coking Coal Project – Soutpansberg Coalfield (67% owned)
The development of the Company's flagship fully licensed and shovel-ready Makhado Project is
expected to position MC Mining as South Africa's pre-eminent steelmaking HCC producer. Makhado
recorded no LTIs (FY2024 Q3: nil) during the quarter.
The Makhado Project remains a significant strategic asset for the Company that has the potential to
take the Company's production profile to more than 800,000 tonnes per annum of steelmaking HCC
and will generate significant returns for shareholders. Funding and development activities for
Makhado are on going following the successful off market Offer process.
Vele Aluwani Semi-Soft Coking and Thermal Coal Colliery – Limpopo (Tuli) Coalfield (100% owned)
Operations at Vele remain suspended. Vele recorded no LTIs (FY2024 Q3: nil) during the quarter.
Greater Soutpansberg Project (GSP) – Soutpansberg Coalfield (74% owned)
The Greater Soutpansberg Projects recorded no LTIs (FY2024 Q3: nil) during the quarter. The Company
previously executed the mining rights for the Mopane and Generaal project areas. During the quarter,
MC Mining executed the mining right for the Chapudi project area. The studies required for the
environmental and water use licences are expected to commence during H2 CY2024.
Appendix 5B – Quarterly Cash Flow Report
The Company's available cash balance and facilities as at 30 June 2024 was US$1.2 million. The
aggregate amount of payments to related parties and their associates, as disclosed as item 6.1 of the
June 2024 quarter Appendix 5B, was US$178k, comprising executive and non-executive director
remuneration.
Christine He
Interim Managing Director and Chief Executive Officer
This announcement has been approved by the Company's Disclosure Committee.
All figures are in South African rand or United States dollars unless otherwise stated.
For more information contact:
Bill Pavlovski Company Vision Corporate bill.pavlovski@mcmining.co.za
Secretary (Pty) Ltd
Company advisers:
Marion Brower Financial PR R&A Strategic +27 11 880 3924
(South Communications
Africa)
BSM Sponsors Proprietary Limited is the nominated JSE Sponsor
A copy of the Appendix 5B can be found here:
https://senspdf.jse.co.za/documents/2024/jse/isse/mcze/5B.4.24.pdf
About MC Mining Limited:
MC Mining is an AIM/ASX/JSE-listed coal exploration, development and mining company operating in South Africa.
MC Mining's key projects include the Uitkomst Colliery (metallurgical and thermal coal), Makhado Project (hard
coking coal), Vele Colliery (semi-soft coking and thermal coal), and the Greater Soutpansberg Projects (coking and
thermal coal).
All figures are denominated in United States dollars unless otherwise stated. Safety metrics are compared to the
preceding quarter while financial and operational metrics are measured against the comparable period in the
previous financial year. A copy of this report is available on the Company's website, www.mcmining.co.za.
Forward-looking statements
This Announcement, including information included or incorporated by reference in this Announcement, may
contain "forward-looking statements" concerning MC Mining that are subject to risks and uncertainties. Generally,
the words "will", "may", "should", "continue", "believes", "expects", "intends", "anticipates" or similar expressions
identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks
and uncertainties relate to factors that are beyond MC Mining's ability to control or estimate precisely, such as future
market conditions, changes in regulatory environment and the behaviour of other market participants. MC Mining
cannot give any assurance that such forward-looking statements will prove to have been correct. The reader is
cautioned not to place undue reliance on these forward-looking statements. MC Mining assumes no obligation and
does not undertake any obligation to update or revise publicly any of the forward-looking statements set out herein,
whether as a result of new information, future events or otherwise, except to the extent legally required.
Statements of intention
Statements of intention are statements of current intentions only, which may change as new information becomes
available or circumstances change.
Glossary
Term Definition
Consortium Goldway and its associates representing 64.3% of the issued share
capital of MC Mining
GSP Greater Soutpansberg Projects
Goldway Goldway Capital Investment Limited
HCC Hard coking coal
HOS Hlalethembeni Outsource Services Proprietary Limited
IDC Industrial Development Corporation of South Africa Limited
LTI Lost time injury
Makhado Project/ Makhado steelmaking hard coking coal project
Makhado
MC Mining/ the MC Mining Limited
Company
Paladar Paladar Resources Proprietary Limited
ROM Run of mine
t tonnes
Takeover Offer Off-market takeover offer of all of the shares not owned by Goldway or
its associates
Uitkomst Colliery/ Uitkomst metallurgical and thermal coal mine
Uitkomst
Vele Colliery/Vele Vele Aluwani Colliery
Tenements held by MC Mining and its Controlled Entities
Change
Project during
Name Tenement Number Location Interest quarter
Chapudi Albert 686 MS Limpopo~ 74%
Project*
Bergwater 712 MS 74%
Remaining Extent and Portion 2 of 74%
Bergwater 697 MS
Blackstone Edge 705 MS 74%
Remaining Extent & Portion 1 of 74%
Bluebell 480 MS
Remaining Extent & Portion 1 of 74%
Bushy Rise 702 MS
Castle Koppies 652 MS 74%
Chapudi 752 MS 74%
Remaining Extent, Portions 1, 3 & 4 74%
of Coniston 699 MS
Driehoek 631 MS 74%
Remaining Extent of Dorps-rivier 74%
696 MS
Enfield 512 MS (consolidation of 74%
Remaining Extent of Enfield 474
MS, Brosdoorn 682 MS &
Remaining Extent of Grootvlei
684 MS)
Remaining Extent and Portion 1 of 74%
Grootboomen 476 MS 74%
Grootvlei 684 MS 74%
Kalkbult 709 MS 74%
Remaining Extent, Remaining 74%
Extent of Portion 2, Remaining
Extent of Portion 3, Portions 1,
4, 5, 6, 7 & 8 of Kliprivier 692
MS
Remaining Extent of Koodoobult 74%
664 MS
Change
Project during
Name Tenement Number Location Interest quarter
Koschade 657 MS (Was Mapani Kop 74%
656 MS)
Malapchani 659 MS 74%
Mapani Ridge 660 MS 74%
Melrose 469 MS 74%
Middelfontein 683 MS 74%
Mountain View 706 MS 74%
M'tamba Vlei 654 MS 74%
Remaining Extent & Portion 1 of 74%
Pienaar 635 MS
Remaining Extent & Portion 1 of 74%
Prince's Hill 704 MS
Qualipan 655 MS 74%
Queensdale 707 MS 74%
Remaining Extent & Portion 1 of 74%
Ridge End 662 MS
Remaining Extent & Portion 1 of 74%
Rochdale 700 MS
Sandilands 708 MS 74%
Portions 1 & 2 of Sandpan 687 MS 74%
Sandstone Edge 658 MS 74%
Remaining Extent of Portions 2 & 3 74%
of Sterkstroom 689 MS
Sutherland 693 MS 74%
Remaining Extent & Portion 1 of 74%
Varkfontein 671 MS
Remaining Extent, Portion 2, 74%
Remaining Extent of Portion 1 of
Vastval 477 MS
Vleifontein 691 MS 74%
Change
Project during
Name Tenement Number Location Interest quarter
Ptn 3, 4, 5 & 6 of Waterpoort 695 74%
MS
Wildebeesthoek 661 MS 74%
Woodlands 701 MS 74%
Kanowna M27/41 Coolgardie^ Royalty<>
West &
M27/47 Royalty<>
Kalbara
M27/59 Royalty<>
M27/72,27/73 Royalty<>
M27/114 Royalty<>
M27/196 Royalty<>
M27/181 5.99%
M27/414,27/415 Royalty<>
P27/1826-1829 Royalty<>
P27/1830-1842 Royalty<>
P27/1887 Royalty<>
Abbotshall ML63/409,410 Norseman^ Royalty
Royalty
Kookynie ML40/061 Leonora^ Royalty
Royalty
ML40/135,136 Royalty
Makhado Fripp 645 MS Limpopo~ 67%#
Project
Lukin 643 MS 67%#
Mutamba 668 MS 67%#
Salaita 188 MT 67%#
Tanga 849 MS 67%#
Daru 889 MS 67%#
Windhoek 900 MS 67%#
Beck 568 MS Limpopo~ 74%
Change
Project during
Name Tenement Number Location Interest quarter
Generaal Bekaf 650 MS 74%
Project*
Remaining Extent & Portion 1 of 74%
Boas 642 MS-
Chase 576 MS 74%
Coen Britz 646 MS 74%
Fanie 578 MS 74%
Portions 1, 2 and Remaining Extent 74%
of Generaal 587 MS
Joffre 584 MS 74%
Juliana 647 MS 74%
Kleinenberg 636 MS 74%
Remaining Extent of Maseri Pan 74%
520 MS
Remaining Extent and Portion 2 of 100%
Mount Stuart 153 MT
Nakab 184 MT 100%
Phantom 640 MS 74%
Riet 182 MT 100%
Rissik 637 MS 100%
Schuitdrift 179 MT 100%
Septimus 156 MT 100%
Solitude 111 MT 74%
Stayt 183 MT 100%
Remaining Extent & Portion 1 of 100%
Terblanche 155 MT
Van Deventer 641 MS 74%
Wildgoose 577 MS 74%
Ancaster 501 MS Limpopo~ 100%
Change
Project during
Name Tenement Number Location Interest quarter
Mopane Banff 502 MS 74%
Project*
Bierman 599 MS 74%
Cavan 508 MS 100%
Cohen 591 MS 100%
Remaining Extent, Portions 1 & 2 of 74%
Delft 499 MS
Dreyer 526 MS 74%
Remaining Extent of Du Toit 563 74%
MS
Faure 562 MS 74%
Remaining Extent and Portion 1 of 74%
Goosen 530 MS
Hermanus 533 MS 74%
Jutland 536 MS 100%
Krige 495 MS 74%
Mons 557 MS 100%
Remaining Extent of Otto 560 MS 74%
(Now Honeymoon)
Remaining Extent & Portion 1 of 74%
Pretorius 531 MS
Schalk 542 MS 74%
Stubbs 558 MS 100%
Ursa Minor 551 MS 74%
Van Heerden 519 MS 74%
Portions 1, 3, 4, 5, 6, 7, 8, 9, 74%
Remaining Extent of Portion 10,
Portions 13, 14, 15, 16, 17, 18,
19, 20, 21, 22, 23, 24, 26, 27, 29,
30, 35, 36, 37, 38, 39, 40, 41, 44,
Change
Project during
Name Tenement Number Location Interest quarter
45, 46, 48, 49, 50, 51, 52 & 54 of
Vera 815 MS
Remaining Extent of Verdun 535 74%
MS
Voorburg 503 MS 100%
Scheveningen 500 MS 74%
Uitkomst Portion 3 (of 2) of Kweekspruit No. KwaZulu- 84%
Colliery 22 Natal~
and Portion 8 (of 1) of Kweekspruit No. 84%
prospects 22
Remainder of Portion 1 of Uitkomst 84%
No. 95
Portion 5 (of 2) of Uitkomst No. 95 84%
Remainder Portion1 of Vaalbank 84%
No. 103
Portion 4 (of 1) of Vaalbank No. 103 84%
Portion 5 (of 1) of Vaalbank No. 103 84%
Remainder of Portion 1 of 84%
Rustverwacht No. 151
Remainder of Portion 2 of 84%
Rustverwacht No. 151
Remainder of Portion 3 (of 1) of 84%
Rustverwacht No. 151
Portion 4 (of 1) Rustverwacht 84%
No.151
Portion 5 (of 1) Rustverwacht No. 84%
151
Remainder of Portion 6 (of 1) of 84%
Rustverwacht No. 151
Portion 7 (of 1) of Rustverwacht No. 84%
151
Portion 8 (of 2) of Rustverwacht No. 84%
151
Remainder of Portion 9 (of 2) of 84%
Rustverwacht No. 151
Portion 11 (of 6) of Rustverwacht 84%
No. 151
Portion 12 (of 9) of Rustverwacht 84%
No. 151
Portion 13 (of 2) of Rustverwacht 84%
No. 151
Change
Project during
Name Tenement Number Location Interest quarter
Portion 14 (of 2) of Rustverwacht 84%
No. 151
Portion 15 (of 3) of Rustverwacht 84%
No. 151
Portion 16 (of 3) of Rustverwacht 84%
No. 151
Portion 17 (of 2) of Rustverwacht 84%
No. 151
Portion 18 (of 3) of Waterval No. 84%
157
Remainder of Portion 1 of Klipspruit 84%
No. 178
Remainder of Portion 4 of Klipspruit 84%
No. 178
Remainder of Portion 5 of Klipspruit 84%
No. 178
Portion 6 of Klipspruit No. 178 84%
Portion 7 (of 1) of Klipspruit No. 84%
178
Portion 8 (of 1 )of Klipspruit No. 84%
178
Portion 9 of Klipspruit No. 178 84%
Remainder of Portion 10 (of 5) of 84%
Klipspruit No. 178
Portion 11 (of 5) of Klipspruit No. 84%
178
Portion 13 (of 4) of Klipspruit No. 84%
178
Remainder of Portion 14 of 84%
Klipspruit No. 178
Portion 16 (of 14) of Klipspruit No. 84%
178
Portion 18 of Klipspruit No. 178 84%
Portion 23 of Klipspruit No. 178 84%
Remainder of Portion 1 of 84%
Jackalsdraai No. 299
Remainder of Jericho B No. 400 84%
Portion 1 of Jericho B No. 400 84%
Portion 2 of Jericho B No. 400 84%
Portion 3 of Jericho B No. 400 84%
Change
Project during
Name Tenement Number Location Interest quarter
Remainder of Jericho C No. 413 84%
Portion 1 of Jericho C No. 413 84%
Remainder of Portion 1 of Jericho A 84%
No. 414
Remainder of Portion 2 (of 1) of 84%
Jericho A No. 414
Portion 3 (of 1) of Jericho A No. 414 84%
Portion 4 (of 1) of Jericho A No. 414 84%
Portion 5 (of 2) of Jericho A No. 414 84%
Portion 6 (of 1) of Jericho A No. 414 84%
Margin No. 420 84%
Vele Portions of Overvlakte 125 MS Limpopo~ 100%
Colliery (Remaining Extent, 3, 4, 5, 6, 13,
and 14)
prospects
Bergen Op Zoom 124 MS 100%
Semple 155 MS 100%
Voorspoed 836 MS 100%
Alyth 837 MS 100%
* Form part of the Greater Soutpansberg Projects
~ Tenement located in the Republic of South Africa
^ Tenement located in Australia
#
MC Mining's interest will reduce to 67% on completion of the 26% Broad Based Black Economic
Empowerment (BBBEE) transaction
<> net smelter royalty of 0.5%
Date: 31-07-2024 10:30:00
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