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MC Mining Q3 2025 activities report
Highlights
Operations
• Health and safety continue to be a priority, with the goal being to achieve zero harm. The Makhado steelmaking hard coking coal (HCC) project (Makhado Project or Makhado) achieved a lost time injury (LTI) free quarter and has now reached 727 days LTI-free, for 376 000 manhours. Unfortunately, Uitkomst steelmaking coal mine (Uitkomst Colliery or Uitkomst) sustained four LTIs (FY2025 Q2: one LTI) during the quarter, prompting an increase in intervention measures already in implementation;
• Makhado achieved significant development milestones towards commissioning of the coal handling and preparation plant (CHPP or coal preparation plant) by December 2025, with construction of the CHPP being started, construction power in place with over 14km of overhead power lines erected and the temporary access bridged to the project site now serviceable;
• Run-of-mine (ROM) coal production from the Uitkomst steelmaking and thermal coal (TC) mine (Uitkomst Colliery or Uitkomst) was 13% lower than the March 2024 quarter at 101 101 tonnes (t) (FY2024 Q3: 115 909t), with the reduction in production due to lower-than-expected coal seam widths and lower mining fleet availability;
• Uitkomst sold 56 320t of high-grade coal during the quarter (FY2024 Q3: 75 590t) and no sales of lower grade middlings coal (FY2024 Q3: nil). Coal preparation plant yields improved due to operational improvement initiatives from 60% to 73% over the period to help ameliorate some of the lower ROM coal production;
• Limited activities were undertaken at the Company's Vele Aluwani semi-soft coking coal (SSCC) and TC colliery (Vele Colliery or Vele) and Greater Soutpansberg Projects (GSP); and
• Depressed TC prices continued with average prices of USD96/t for the three months, compared to USD110/t in Q2 FY2025 and USD97/t in Q3 of FY2024. Premium steelmaking HCC prices have decreased, averaging USD187/t in the quarter compared to USD312/t in FY2024 Q3.
Corporate
• Available cash and facilities of USD9 million at the period end (FY2025 Q2: USD4 million);
• On the 23rd of January, the Shareholders passed the following resolutions to:
o Ratify the prior issue by the Company of 62 102 002 new Shares to Kinetic Crest Ltd., a wholly owned subsidiary of Kinetic Development Group Ltd..
o Approve the acquisition by Kinetic Development Group Ltd. (and its Associates) of such number of Second Closing Shares that will result in Kinetic Development Group Ltd. (and its Associates) holding 51% of the Company's issued and outstanding Shares and having a Relevant Interest in a total of 51% of all of the Company's issued and outstanding Shares on the Second Closing
o Approve the acquisition by the Company of a Relevant Interest in the Second Closing Shares on the Second Closing as a consequence of the Company's entry into the Proposed Escrow Deed, on the terms and subject to the conditions set out in the Explanatory Statement.
• Kinetic Development Group Ltd. has made payments amounting to USD20 000 000 for the purchase of the MC Mining shares as part of the share subscription agreement during the quarter.
• The Industrial Development Corporation of South Africa Ltd. (IDC) extended the date for repayment of the R160 million loan plus interest thereon, to 30 June 2025, on condition that the Company make a payment of ZAR10 000 000 to the IDC. The ZAR10 000 000 repayment was made during the quarter.
• The company made a further repayment of ZAR100 000 000 to the IDC during the quarter.
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