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MC Mining - quarterly activities report Sep 2025
Highlights
Operations
• Health and safety performance across the group improved, with the Company having operated with no lost time injuries (LTI) for the quarter. The Makhado steelmaking hard coking coal Project (Makhado Project or Makhado) has now reached 911 days LTI-free, for 949 000 manhours worked, whilst Uitkomst steelmaking coal Colliery (Uitkomst Colliery or Uitkomst) reached 228 days LTI-free;
• Development of the Makhado Project progressed well, with key milestones achieved despite experiencing some construction delays: commissioning activities for the coal handling and preparation plant (CHPP or Coal Plant) are expected to begin by December 2025; the principal mining contractor has commenced with the open pit mining of the box cut; civil foundational works for the Coal Plant are largely complete; and significant progress is being made towards the commissioning of the 14km overhead power transmission line;
• The operational improvement plan for Uitkomst Colliery (Turnaround Plan) was approved and key improvement initiatives are being executed accordingly. Overhead cost reductions are being realised and focus has moved to increasing production via improved equipment availabilities and utilisation. Improved production is expected in the last quarter of this calendar year.
• Run-of-mine (ROM) coal production from Uitkomst Colliery decreased by 21% on the previous quarter's production, and was 8% lower than the comparative period in FY2025 at 82 588 tonnes (t) (FY2025 Q1: 90 069t). The reduction in production, compared to FY2025 Q1, was due to delays in the start of the turnaround plan, temporary operational challenges (geological intrusions) and reduced machine availability due to intensive repair and refurbishment being carried as part of turnaround plan;
• Uitkomst Colliery sold 47 116t of high-grade coal during the quarter (FY2025 Q1: 47 586t), a 1% decrease on the prior year sales, and there was no sales of the lower grade middlings coal (FY2025 Q1: 8 719). Coal plant yields remained high at 73% due to operational improvement initiatives over the period, which offset the lower ROM coal production;
• Limited activities were undertaken at the Company's Vele Aluwani semi-soft coking coal (SSCC) and thermal coal (TC) Colliery (Vele Colliery or Vele), whilst the numerous coal deposits within the Greater Soutpansberg Projects (GSP) were evaluated and prioritised for development; and
• Depressed TC prices continued with average prices of USD91/t for the three months, compared to USD90/t in Q4 FY2025 and USD110/t in Q1 of FY2025. Premium steelmaking HCC prices have decreased, averaging USD185/t in the quarter compared to USD212/t in FY2025 Q1.
Corporate
• Available cash and facilities was USD13.2 million at the period end (FY2025 Q4: USD7.4 million);
• Kinetic Development Group Ltd. (KDG) made payments amounting to USD15 million for the purchase of MC Mining shares, as part of the share subscription agreement, during the quarter. USD5 million of the payment relates to the fourth Second Closing and USD10 million of the payment relates to the fifth Second Closing as per the Share Subscription Agreement;
• The Company made a further repayment of ZAR10 million towards the Industrial Development Corporation (IDC) loan during the quarter;
• Permanent appointment of Ms Yi (Christine) He as Managing Director and Chief Executive Officer of MC Mining Ltd.
Events subsequent to the end of the quarter
• Jianheng (Albert) Deng was appointed as a Non-Executive Director of MC Mining; and
• Zhen (Brian) He resigned from being a Non-Executive Director of MC Mining.
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