MC Mining Limited (JSE:MCZ) News - Half-Year Results For Period Ending 31 December 2021

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                                              14 March 2022


Half-Year Results For Period Ending 31 December 2021


MC Mining Limited (MC Mining or the Company) is pleased to provide
its interim financial report for the six months ended 31 December 2021
(the Period). All figures are denominated in United States dollars
unless otherwise stated and the full report is available on the
Company's website, www.mcmining.co.za.


Financial review

-   The loss after tax for the Period was $0.8 million or 0.54 cents
    per share (FY2021 H1: loss after tax of $2.7 million or 1.80 cents
    per share);
-   Revenue of $13.0 million (FY2021 H1: $8.8 million) and cost of
    sales of $10.9 million (FY2021 H1: $9.2 million) resulted in a
    gross profit of $2.1 million (FY2021 H1: gross loss $0.4 million)
    for the Period;
-   Employee benefit expense of $1.2 million (FY2021 H1: $1.0 million);
-   Other expenses of $1.7 million (FY2021 H1: $1.3 million); and
-   As at 31 December 2021, the Company had cash and cash equivalents
    of $1.9 million compared to cash and cash equivalents of $1.0
    million at 30 June 2021.

Operational review
                                       FY2022 H1    FY2021 H1     % change
    Production tonnages
    Uitkomst ROM coal (t)               227,448      246,229     (8%)


    Sales tonnages
    Own ROM coal (t)                    107,953      127,534     (15%)
    Middlings sales (t)                  11,655      11,569        1%
                                        119,608      139,103     (14%)
    Financial metrics
    Revenue/t ($)                         109          62         76%
    Production costs/saleable tonnes
                                           85          54         57%
    ($)


-    The Uitkomst metallurgical and thermal coal mine (Uitkomst Colliery
     or Uitkomst) sold 107,953 tonnes (t) of high quality metallurgical
     and thermal coal during the Period (FY2021 H1: 127,534t);

-    An additional 11,655t of high-ash middlings were sold during the
     Period (FY2021 H1 11,569t);

-    The higher global demand for coal post the COVID-19 pandemic
     resulted in a significant increase in international prices with an
     average API4 coal price of $151/t for the Period (H1 FY2021: $64/t);

-    The Company continues to progress a number of debt/equity funding
     initiatives to raise the additional funding required to develop the
     Makhado hard coking coal project (Makhado Project or Makhado);

-    Limited activities at MC Mining’s other projects, being the Vele
     semi-soft coking and thermal coal colliery and Greater Soutpansberg
     Projects (collectively, the Limpopo Projects), which remain in
     various stages of development;
                                                                       
-    An improved safety record with three lost-time injuries (LTIs)
     reported at Uitkomst during the Period (FY2021 H1: four LTIs). No
     LTIs were reported at the Makhado or Limpopo Projects; and

-    The Company recorded 17 positive COVID-19 cases (FY2021 H1: 27
     positive COVID-19 cases) at Uitkomst, Makhado and Limpopo Projects
     during the Period.

Corporate features

-   The Industrial Development Corporation of South Africa Limited
    (IDC) has provided longstanding commitment to the development of
    Makhado and has provided a loan of $10.0 million (ZAR160 million)
    (excluding interest). This funded the progress of the project to
    its fully-permitted status as well as to partially fund the
    acquisition of the surface rights over the project area. During the
    Period, the IDC extended the date for repayment to 31 January 2022
    and subsequent to the end of the Period, this was further extended
    to 30 November 2022.

-   During July 2019 the IDC granted MC Mining a conditional $15.4
    million (ZAR245 million) term loan facility for the development of
    the Makhado Project. During the Period the terminal draw down date
    for this facility was extended from 31 July 2021 to 31 January
    2022. The IDC subsequently further extended the terminal draw down
    date to 30 November 2022, subject to the bank confirming its due
    diligence.

Further subsequent events

-   Completion of the acquisition of the Lukin and Salaita properties,
    being the key surface rights for the Makhado Project, with the
    settlement of the deferred balance of $2.6 million (ZAR40.6
    million) at the end of February 2022.
                                                                                  
-   Staged $5.7 million (ZAR86 million) Convertible Advance and
    Subscription Agreement (the Agreement) with South African-based
    mining group, Senosi Group Investment Holdings Proprietary Limited
    (SGIH). SGIH has a successful track record of developing and
    operating coal mines in South Africa and the transaction is of
    great significance as the Company moves closer to finalising a
    funding package to develop the Makhado Project. At the date of the
    interim  financial report, SGIH had paid $2.7 million (ZAR40
    million) in terms of the Agreement.

-   MC Mining received a notice under section 249D of the Corporations
    Act 2001 (Cth) from shareholders holding approximately 6.8% of its
    ordinary shares between them, requesting that a general meeting be
    held. An extraordinary general meeting (EGM) of the Company has
    been convened for 11  April 2022 to consider the relevant
    resolutions.

-   Mr Bernard Pryor resigned as Chairman of the Board and long standing
    Non-Executive director Mr  Khomotso  Mosehla  was appointed as
    Chairman, pending the outcome of the scheduled 11 April 2022 EGM.

Authorised by
Sam Randazzo
CEO/Director

This announcement has been approved by the Company’s Disclosure Committee.
This announcement is inside information for the purposes of Article 7 of
Regulation 596/2014.


For more information contact:
Sam Randazzo                      Interim CEO                    MC Mining Limited              +61 408 945010
Tony Bevan                        Company Secretary              Endeavour Corporate            +61 08 9316 9100
                                                                 Services

Company advisors:
James Harris / James Dance        Nominated Adviser             Strand Hanson Limited           +44 20 7409 3494


Rory Scott                        Broker (AIM)                  Tennyson Securities Limited     +44 20 7186 9031
James Duncan                      Financial PR (South Africa)   R&A Strategic                   +27 11 880 3924
                                                                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. 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).

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.




                                                                                                                       

Date: 14-03-2022 09:00:00
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