To view the PDF file, sign up for a MySharenet subscription.

MC MINING LIMITED - Report for the quarter ended 30 September 2018

Release Date: 31/10/2018 09:00
Code(s): MCZ     PDF:  
Wrap Text
Report for the quarter ended 30 September 2018

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 October 2018

                      REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2018

                        CONTINUED STRATEGY EXECUTION YIELDS RESULTS

MC Mining Limited (“MCM” or “MC Mining” or the “Company”) which operates in
South Africa, together with its subsidiaries, hereby provides its update for
the three months ended 30 September 2018, the first quarter (the “Quarter”)
of the 30 June 2019 financial year. All figures are denominated in United
States dollars unless otherwise stated. A copy of this report is available
on the Company's website, www.mcmining.co.za.


Salient operational features
-    No lost-time injuries (“LTI”) recorded during the Quarter, compared to
     one LTI at the Uitkomst metallurgical and thermal coal colliery (“Uitkomst
     Colliery” or “Uitkomst” or the “Colliery”) during Q4 FY2018;

-     Uitkomst Colliery run of mine (“ROM”) coal production for the period
      increased to 125,153 tonnes (“t”) (FY2018 Q1: 125,108t) while third party
      coal purchases were 12,466t (FY2018 Q1: 45,313t), reducing due to the
      expiry of a supply contract during FY2018;

-     Sales of metallurgical, high quality and blended thermal coal mined at
      Uitkomst increased during the Quarter - from the comparative period’s
      80,677t, to 89,846t, which included 9,273t of slurry sold directly to
      customers;

-     Sales from coal purchased for blending or processing declined from 48,266t
      to 5,282t as a result of the expiry of the aforementioned supply contract;

-     Favourable thermal coal prices resulted in average revenue per saleable
      tonne from Uitkomst of $87.39 during the Quarter (Q1 FY2018: $50.03/t; Q4
      FY2018: $96.52/t);

-   Uitkomst transitioned to an owner operated colliery with the acquisition
    of the underground mining contractor, Khethekile Mining (Pty) Ltd’s
    (“Khethekile”), operations and transfer of approximately 340 staff to the
    Colliery;

-   Heads of Agreement (“HOAs”) signed with China Railway International Group
    Co., Ltd. (“CRIG”), for the facilitation of a funding package up to 85%
    of the engineering, procurement and construction (“EPC”) contract value
    for the Makhado hard coking and thermal coal project (“Makhado Project”
    or “Makhado”) and negotiation of the EPC contract and mining contract;

-   Received approval for the amendment to the Environmental Authorisation
    (“EA”) for the Makhado Project allowing for the transport of coal by road
    rather than rail, which was subsequently appealed as expected thereby
    automatically suspending the amendment; and

-   Vele coking and thermal coal colliery (“Vele Colliery”) remained on care
    and maintenance during the Quarter.




Corporate and financial features

-  Completion of the regulatory matters relating to the disposal of the
   Mooiplaats thermal coal colliery (“Mooiplaats Colliery”) resulting in the
   receipt of the first of 10 equal quarterly instalments of $801k;

-   R15 million ($1.1 million) ABSA Bank Limited revolving asset finance
    facility (“ABSA Facility”) for the acquisition of additional mining
    equipment at the Uitkomst Colliery;

-   Extension for a further six months of the $8.5 million facility from the
    Industrial Development Corporation of South Africa Limited to MC Mining’s
    subsidiary, Baobab Mining and Exploration Proprietary Limited (“Baobab”),
    for the development of Makhado;

-   Available cash at Quarter-end of $10.4 million ($10.9 million at the end
    of June 2018) and restricted cash of $0.03 million; and

-   Hard coking coal prices remained above the long-term pricing expectations
    while South African export thermal coal prices remained above $102/t at
    the end of September 2018.


Subsequent events

-   Signature of a Makhado Project hard coking coal (“HCC”) coal purchase
    agreement with Huadong Coal Trading Center Co, Ltd (“HDCTC”), a Chinese
    state-owned enterprise and a subsidiary of the China Forestry Group
    Corporation (the “Forestry Group”).




                                                                            
QUARTERLY COMMENTARY

Uitkomst Colliery – Utrecht Coalfields (70% owned)
The Uitkomst Colliery employs approximately 554 employees (including
contractors) and recorded no LTIs during the Quarter (FY2018 Q4: one LTI).

Uitkomst is a high-grade thermal export quality coal deposit with
metallurgical applications consisting of an existing underground coal mine
and a planned life of mine extension. Coal produced is sold into the domestic
metallurgical and thermal markets for use as pulverised coal while the peas
are supplied to local energy generation facilities.

The Colliery was acquired on 30 June 2017 and its underground operations
were carried out by an independent mining contractor, Khethekile, which
recorded intermittent equipment availability and funding challenges. To
ensure sustainability at Uitkomst, MCM acquired Khethekile’s mining
operations during the Quarter and the assets acquired in terms of the
transaction includes conveyor systems, coal mining and transportation
equipment and the transfer, in accordance with South African labour
legislation, some 340 Khethekile employees. The acquisition price of for
$4.9 million (R65 million) will be settled using ongoing Uitkomst cash flows
as follows:

-   Cash consideration of $1.2 million (R16.4 million) of which $0.5 million
    (R7.4 million) was paid during the Quarter, with the balance (excluding
    no downward adjustments) payable in 27 monthly instalments; and
-   Assumption of loans, trade payables and accrued expenses (together
    totalling $3.7 million (R48.6 million)) including a $1.5 million (R20.0
    million) loan from Pan African Resources Management Services (Pty) Ltd.

Uitkomst produced 125,153t (FY2018 Q1: 125,108t) of ROM coal during the three
months while only 12,466t of ROM coal was purchased from third parties
(FY2018 Q1: 45,313t). The ROM coal mined and processed generated sales of
89,846t of coal, an increase compared with the comparative period’s 80,677t.
This figure includes 9,273t of slurry product that was directly sold to
customers without blending. Coal is purchased from nearby third parties and
blended with slurry and sold. The expiry of a ROM supply contract in FY2018
resulted in sales of 5,282t, compared to 48,266t in Q1 FY2018. The Colliery
is evaluating alternative suppliers of third party ROM coal for blending and
processing and will keep the market appraised of progress in this regard.

The Uitkomst Colliery benefitted from favourable coal prices compared to Q1
FY2018 and generated pleasing results and higher than budgeted EBITDA for
the reporting period. The higher coal prices and change in sales mix to
include a higher proportion of quality Uitkomst coal resulted in in revenue/t
increasing 75% to $87.39/t (FY2018 Q1: 50.03/t; FY2018 Q4: 96.52/t). The




                                                                           
change from contract mining during the Quarter resulted in production costs
increasing 8% to $46.12/t (FY2018 Q1: $42.54/t; FY2018 Q4: $48.00/t). This
increase is primarily due to Khethekile, in an effort to maintain its
profitability, delaying necessary engineering and maintenance costs during
Q1 FY2018 and being paid a cost per tonne produced irrespective of actual
costs incurred by the contractor.

                                 Quarter to      Quarter to
                               end-September   end-September
                                    2018            2017            %
Production tonnages
Uitkomst ROM (t)                  125 153         125 108           0%
Purchased ROM to blend (t)         12 466          45 313          -72%
                                  137 619         170 421          -19%
Sales tonnages
Own ROM (t)                       80 573          80 677            0%
Slurry directly sold (t)           9 273             -             100%
Slurry used for blending (t)         -            36 489          -100%
Purchased ROM to blend (t)           -            48 266          -100%
Purchased ROM for processing
                                   5 282             -             100%
(t)
                                  95 128          165 432          -42%
Quarter financial metrics
Revenue/t ($)                      87.39           50.03           75%
Revenue/t (ZAR)                    1 230            659            87%
Production cost/ROM tonnes
                                   46.12           42.54            8%
($)

Following the transition to an owner-operated mine during the Quarter,
Uitkomst secured the R15 million ($1.1 million) ABSA Facility. ABSA is one
of South Africa’s major financial service providers and the funds are being
used for additional underground mining equipment. The rolling five-year ABSA
Facility is subject to a floating coupon at the South African Prime rate
(currently 10.0% per annum) plus 0.5% and is secured by the mining equipment
purchased. The securing of the ABSA Facility during the Quarter facilitated
the purchase of additional underground mining equipment that is expected to
be commissioned during the December 2018 quarter.

The insourcing of underground mining operations at Uitkomst is an opportunity
to assess the overall performance at the Colliery, facilitating the
implementation of a number of improvement initiatives to increase future ROM
coal production and profitability. These include enhanced control of
production costs and asset maintenance together with the programme to re-
processing coarse discard coal, anticipated to produce an estimated 40,000t
per annum of high-ash saleable thermal coal. The plant modifications to
facilitate this production will commence in the December 2018 quarter with                                                                           
commissioning in early CY2019 and construction is not expected to have any
adverse effects on processing capacity during this time.

The Uitkomst Colliery has an approximate 16-year life of mine, which includes
the development of a north adit (horizontal shaft). The Colliery has
undertaken various studies and has identified the optimal position for the
new adit and will commence with the geotechnical drilling to conclude the
final adit design. This adit will improve operating efficiencies by reducing
travel periods for employees and equipment and has the potential to increase
ROM production by approximately 150,000t per annum. The Colliery awaits
approval from the Department of Water and Sanitation for the amendment to
its Integrated Water Use License prior to development of north adit.

Makhado Hard Coking Coal Project – Soutpansberg Coalfield (95% owned - 69%
post BEE and Industrial Development Corporation Limited transactions)
The Makhado Project recorded no LTIs (FY2018 Q4: nil) during the Quarter.

During the Quarter MC Mining signed HOAs with CRIG, a Chinese construction
enterprise and the international focused division of China Railway Group, a
leading global construction company listed in Shanghai and Hong Kong. The
HOAs are for the facilitation of a funding package up to 85% of the Makhado
Project EPC contract value and negotiation of the EPC contract and mining
contract, conditional upon the finalisation of mutually acceptable terms and
conditions by June 2019. This includes completion of the Makhado front end
engineering and design study, EPC contract price agreement, as well as
satisfactory funding terms.

The Company held very successful Makhado Project HCC off-take discussions
during the Quarter. These resulted in the signature of an off-take agreement
with HDCTC during October 2018. HDCTC is a Chinese state-owned enterprise
and a subsidiary of the Forestry Group, the owner of substantial logistics
infrastructure including 780,000t of berth-space in China. HDCTC has
logistics and bulk commodity trading interests and traded in excess of five
million tonnes of iron ore and coal during the past two years. Negotiations
for additional HCC off-take agreements are at an advanced stage and the
Company anticipates that the formal documentation will be concluded during
the December 2018 quarter while discussions with potential export thermal
coal customers as well as project funders are ongoing.

The construction of the Makhado Project requires the Company obtaining access
to two key properties to complete geotechnical drilling to confirm amongst
others, positioning of processing plant infrastructure. Access to the
properties has been delayed due to opposition against the government managed
land claims process. This resulted in the Company embarking on the legal
process during the Quarter to enforce its rights under South African mining
legislation.




                                                                           
Further regulatory progress was made at the Company’s flagship, fully
permitted Makhado Project. Baobab, the owner and developer of the Makhado
Project, applied to both the Department of Mineral Resources (“DMR”) and the
Limpopo Department of Economic Development, Environment and Tourism (“LEDET”)
for an amendment to Makhado’s EA whereby coal will be transported to the
Musina rail siding by road rather than rail. Both LEDET and DMR approved the
EA amendment during the Quarter but this decision, as expected, has been
appealed by a narrow interest group that appealed (and lost) their appeal
against the original Makhado EA. This appeal results in the suspension of
the EA Amendment and MC Mining is addressing this matter with the regulatory
authorities.

Vele Coking and Thermal Coal Colliery – Limpopo (Tuli) Coalfield (100% owned)
The Vele Colliery remained on care and maintenance during the Quarter and no
LTIs were recorded during the period (FY2018 Q4: nil).

No further developments to report during the Quarter.

Greater Soutpansberg Project (MbeuYashu) – Soutpansberg Coalfield (74% owned)
The MbeuYashu Project recorded no LTIs (FY2018 Q4: nil) during the Quarter.

No further developments to report during the three months.

Corporate
MC Mining disposed of its shares and claims in the Mooiplaats Colliery during
2017 for an aggregate purchase price of $12.9 million (R179.9 million) and
received the initial sale proceeds of $4.8 million (R67.0 million) at the
time, including $1.1 million paid to Mooiplaats’ black economic empowerment
partner. The remaining $8.1 million (R112.9 million) is payable in ten equal,
quarterly payments and the timing thereof was dependent on the DMR approving
a Section 102 application to, amongst other things, incorporate certain
prospecting rights into the Mooiplaats mining right. The DMR approved the
requisite Section 102 application during the Quarter, resulting in the
receipt of the first of the quarterly payments of $810k (R11.3 million).

Markets
The hard coking coal price remained stable during the Quarter and long-term
forecasts reflect favourable pricing based on market fundamentals. The API4
thermal coal price softened slightly from $104/t in June 2018 to $102/t in
September 2018.

David Brown, CEO commented:
“The completion of the regulatory requirements for the Mooiplaats Colliery
sales process is another significant step in the clean-up of the Company’s
balance sheet. The quarterly instalments will be used to develop the
Company’s flagship Makhado Project which projects world class nature was




                                                                           
endorsed during the Quarter with the signature of HOAs with CRIG, an extremely
positive move.

The acquisition and integration of underground mining operations at Uitkomst
is expected to result in improved equipment availability, contribute to
higher ROM production and is the major introductory step to production
enhancement initiatives. Furthermore, the conclusion of the ABSA Facility
reflects the growing confidence that financial institutions have in MC Mining
and Uitkomst Colliery. We continued to make excellent progress regarding the
Makhado Project marketing and financing arrangements and concluded the first
hard coking coal off-take agreement during October 2018. This is a critical
step in the development of the project and we anticipate formalising further
off-take arrangements during the December 2018 quarter.

The Makhado Project has all of the requisite legal approvals and the
commencement of construction is dependent on securing access to two key
properties to complete confirmatory geotechnical drilling, finalisation of
the coal marketing agreements and conclusion of the requisite funding
arrangements. The Company had very successful negotiations with off-take
partners and moved closer to securing access to the properties during the
Quarter when it embarked on the process of enforcing its access rights under
the mining right.

The Company also received approval for an amendment to the Makhado EA that
will allow for the transport of coal by road rather than rail. This decision
was unsurprisingly appealed by the same narrow interest group that
unsuccessfully appealed against the original Makhado EA. This group continues
to force a narrow agenda, benefitting only a small minority opposed to
Makhado and this opposition is despite numerous interactions to address their
concerns and the Company’s attempts to work on a cooperative basis. The
Makhado Project will assist in the socio-economic transformation of local
communities and this group stands in direct opposition to the development of
these communities.”

Authorised by
David Brown
Chief Executive Officer


For more information contact:
David Brown             Chief Executive     MC Mining Limited     +27 10 003 8000
                        Officer
Brenda Berlin           Chief Financial     MC Mining Limited     +27 10 003 8000
                        Officer
Tony Bevan              Company Secretary   Endeavour Corporate   +61 08 9316
                                            Services              9100

Company advisors:




                                                                                    
Jos Simson/ Gareth      Financial PR         Tavistock              +44 20 7920
Tredway                 (United Kingdom)                            3150
Ross Allister/David     Nominated Adviser    Peel Hunt LLP          +44 20 7418
McKeown                 and Broker                                  8900
Charmane Russell/Olwen Financial PR          R&A Strategic          +27 11 880 3924
Auret                   (South Africa)       Communications
Investec Bank Limited is the nominated JSE   Sponsor

About MC Mining Limited:
MC Mining is an AIM/ASX/JSE listed coal exploration, development and mining company
operating in South Africa. MCM’s key projects include the Uitkomst Colliery
(metallurgical coal), Makhado Project (coking and thermal coal). Vele Colliery (coking
and thermal coal), and the Greater Soutpansberg Projects (MbeuYashu).


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 MCM’s ability to control or estimate precisely,
such as future market conditions, changes in regulatory environment and the behaviour
of other market participants. MCM 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. MCM assumes no obligation and do
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.




                                                                                      
Tenements held by MCM 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 &                    74%
            4 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 Extent                   74%
            of Portion 2, Remaining Extent of
            Portion 3, Portions 1, 4, 5, 6, 7
            & 8 of Kliprivier 692 MS-
            Remaining Extent of Koodoobult 664                   74%
            MS-
            Koschade 657 MS (Was Mapani Kop                      74%
            656 MS)-
            Malapchani 659 MS-                                   74%
            Mapani Ridge 660 MS-                                 74%




                                                                                    
                                                                            Change
Project                                                                     during
Name         Tenement Number                      Location      Interest   Quarter
             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%
             Ptn 3, 4, 5 & 6 of Waterpoort 695                    74%
             MS--
             Wildebeesthoek 661 MS-                               74%
             Woodlands 701 MS-                                    74%
Kanowna      M27/41                               Coolgardie^    2.99%
West and     M27/47                                              2.99%
Kalbara      M27/59                                              2.99%
             M27/72,27/73                                        2.99%
             M27/114                                             2.99%
             M27/181                                             7.88%
             M27/196                                             2.99%
             M27/414,27/415                                      2.99%
             P27/1826-1829                                       2.99%
             P27/1830-1842                                       2.99%
             P27/1887                                            2.99%
Abbotshall   ML63/409,410                         Norseman^     Royalty
Royalty
Kookynie     ML40/061                             Leonora^      Royalty
Royalty      ML40/135,136                                       Royalty
Makhado      Fripp 645 MS                         Limpopo~        69%#
Project      Lukin 643 MS                                         69%#
             Mutamba 668 MS                                       69%#
             Salaita 188 MT                                       69%#
             Tanga 849 MS                                         69%#
             Daru 848 MS                                          69%#
             Windhoek 847 MS                                      69%#
             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 520                74%
           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%
Mopane     Ancaster 501 MS--                    Limpopo~     100%
Project*   Banff 502 MS-                                      74%
           Bierman 599 MS-                                    74%
           Cavan 508 MS                                      100%
           Cohen 591 MS--                                    100%
           Remaining Extent, Portions 1 & 2                   74%
           of 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%




                                                                            
                                                                        Change
Project                                                                 during
Name        Tenement Number                      Location   Interest   Quarter
            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, 45, 46, 48, 49, 50, 51, 52
            & 54 of Vera 815 MS
            Remaining Extent of Verdun 535 MS-                 74%
            Voorburg 503 MS—                                  100%
            Scheveningen 500 MS-                               74%
Uitkomst    Portion 3 (of 2) of Kweekspruit      KwaZulu-      70%
Colliery    No. 22                               Natal~
and         Portion 8 (of 1) of Kweekspruit                   70%
prospects   No. 22
            Remainder of Portion 1 of Uitkomst                70%
            No. 95
            Portion 5 (of 2) of Uitkomst No.                  70%
            95
            Remainder Portion1 of Vaalbank No.                70%
            103
            Portion 4 (of 1) of Vaalbank No.                  70%
            103
            Portion 5 (of 1) of Vaalbank No.                  70%
            103
            Remainder of Portion 1 of                         70%
            Rustverwacht No. 151
            Remainder of Portion 2 of                         70%
            Rustverwacht No. 151
            Remainder of Portion 3 (of 1) of                  70%
            Rustverwacht No. 151
            Portion 4 (of 1) Rustverwacht                     70%
            No.151
            Portion 5 (of 1) Rustverwacht No.                 70%
            151
            Remainder of Portion 6 (of 1) of                  70%
            Rustverwacht No. 151
            Portion 7 (of 1) of Rustverwacht                  70%
            No. 151
            Portion 8 (of 2) of Rustverwacht                  70%
            No. 151
            Remainder of Portion 9 (of 2) of                  70%
            Rustverwacht No. 151
            Portion 11 (of 6) of Rustverwacht                 70%
            No. 151
            Portion 12 (of 9) of Rustverwacht                 70%
            No. 151
            Portion 13 (of 2) of Rustverwacht                 70%
            No. 151
            Portion 14 (of 2) of Rustverwacht                 70%
            No. 151
            Portion 15 (of 3) of Rustverwacht                 70%
            No. 151
            Portion 16 (of 3) of Rustverwacht                 70%
            No. 151
            Portion 17 (of 2) of Rustverwacht                 70%
            No. 151




                                                                             
                                                                        Change
Project                                                                 during
Name        Tenement Number                      Location   Interest   Quarter
            Portion 18 (of 3) of Waterval No.                  70%
            157
            Remainder of Portion 1 of                         70%
            Klipspruit No. 178
            Remainder of Portion 4 of                         70%
            Klipspruit No. 178
            Remainder of Portion 5 of                         70%
            Klipspruit No. 178
            Portion 6 of Klipspruit No. 178                   70%
            Portion 7 (of 1) of Klipspruit No.                70%
            178
            Portion 8 (of 1 )of Klipspruit No.                70%
            178
            Portion 9 of Klipspruit No. 178                   70%
            Remainder of Portion 10 (of 5) of                 70%
            Klipspruit No. 178
            Portion 11 (of 5) of Klipspruit                   70%
            No. 178
            Portion 13 (of 4) of Klipspruit                   70%
            No. 178
            Remainder of Portion 14 of                        70%
            Klipspruit No. 178
            Portion 16 (of 14) of Klipspruit                  70%
            No. 178
            Portion 18 of Klipspruit No. 178                  70%
            Portion 23 of Klipspruit No. 178                  70%
            Remainder of Portion 1 of                         70%
            Jackalsdraai No. 299
            Remainder of Jericho B No. 400                    70%
            Portion 1 of Jericho B No. 400                    70%
            Portion 2 of Jericho B No. 400                    70%
            Portion 3 of Jericho B No. 400                    70%
            Remainder of Jericho C No. 413                    70%
            Portion 1 of Jericho C No. 413                    70%
            Remainder of Portion 1 of Jericho                 70%
            A No. 414
            Remainder of Portion 2 (of 1) of                  70%
            Jericho A No. 414
            Portion 3 (of 1) of Jericho A No.                 70%
            414
            Portion 4 (of 1) of Jericho A No.                 70%
            414
            Portion 5 (of 2) of Jericho A No.                 70%
            414
            Portion 6 (of 1) of Jericho A No.                 70%
            414
            Margin No. 420                                     70%
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%




                                                                             
                                                                     Change
Project                                                              during
Name        Tenement Number                  Location    Interest   Quarter
Tshikunda   Certain portions of Unsurveyed   Limpopo~       60%
            State Land known as Mutale
Coal bed    Adelaide 91 MT                    Limpopo~       50%    (50%)µ
methane     Adieu 118 MT                                     50%    (50%)µ
            Alicedale 138 MT                                 50%    (50%)µ
            Armstice 120 MT                                  50%    (50%)µ
            Bergwater 697 MS                                 50%    (50%)µ
            Bergwater 712 MS                                 50%    (50%)µ
            Blackstone Edge 705 MS                           50%    (50%)µ
            Bushy Rise 702 MS                                50%    (50%)µ
            Chapudi 752 MS                                   50%    (50%)µ
            Charlotte 90 MT                                  50%    (50%)µ
            Chase 576 MS                                     50%    (50%)µ
            Cross 117 MT                                     50%    (50%)µ
            Doppie 95 MT                                     50%    (50%)µ
            Ettie 33 MT                                      50%    (50%)µ
            Fanie 578 MS                                     50%    (50%)µ
            Feskraal 85 MT                                   50%    (50%)µ
            Folorodwe 79 MT                                  50%    (50%)µ
            Fripp 645 MS                                     50%    (50%)µ
            Gray 189 MT                                      50%    (50%)µ
            Hettey 93 MT                                     50%    (50%)µ
            Jeannette 77 MT                                  50%    (50%)µ
            Joffre 584 MS                                    50%    (50%)µ
            Kalkbult 709 MS                                  50%    (50%)µ
            Laura 115 MT                                     50%    (50%)µ
            Lukin 643 MS                                     50%    (50%)µ
            Magazasand 123 MT                                50%    (50%)µ
            Malapchani 659 MS                                50%    (50%)µ
            Mountainview 706 MS                              50%    (50%)µ
            Mount Stuart 153 MT                              50%    (50%)µ
            Nakab 184 MT                                     50%    (50%)µ
            Naus 178 MT                                      50%    (50%)µ
            Neltox 92 MT                                     50%    (50%)µ
            Phantom 640 MS                                   50%    (50%)µ
            Prince’s Hill 704 MS                             50%    (50%)µ
            Queensdale 707 MS                                50%    (50%)µ
            Riet 182 MT                                      50%    (50%)µ
            Rochdale 700 MS                                  50%    (50%)µ
            Rynie 158 MT                                     50%    (50%)µ
            Salaita 188 MT                                   50%    (50%)µ
            Schuitdrift 179 MT                               50%    (50%)µ
            Septimus 156 MT                                  50%    (50%)µ
            Stayt 183 MT                                     50%    (50%)µ
            Suzette 32 MT                                    50%    (50%)µ
            Tanga 648 MS                                     50%    (50%)µ
            Telema 190 MT                                    50%    (50%)µ
            Terblanche 155 MT                                50%    (50%)µ
            Trevenna 119 MT                                  50%    (50%)µ
            The Duel 186 MT                                  50%    (50%)µ
            Truida 76 MT                                     50%    (50%)µ




                                                                          
                                                                              Change
    Project                                                                   during
    Name       Tenement Number                      Location      Interest   Quarter
                Van Deventer 641 MS                                   50%     (50%)µ
                Wendy 86 MT                                           50%     (50%)µ
                Wildgoose 577 MS                                      50%     (50%)µ
                Windhoek 649 MS                                       50%     (50%)µ
                Zisaan 31 MT                                          50%     (50%)µ
                Ziska 122 MT                                          50%     (50%)µ
                Portion of Unsurveyed state land                      50%     (50%)µ
*        Form part of the Greater Soutpansberg Projects
-        Lapsed – Mining Right Application Lodged
--       Valid – Mining Right Application Lodged
~        Tenement located in the Republic of South Africa
^        Tenement located in Australia
#        MCM’s interest will reduce to 69% on completion of the 26% Broad Based BEE
         transaction
µ        Prospecting right lapsed during the Quarter




                                                                                      

Date: 31/10/2018 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story