HomeCoalMC Mining – A going concern?

MC Mining – A going concern?

MC Mining has provided its audited financial statements for the year ended 30 June 2021. All figures are denominated in United States dollars unless otherwise stated and the full report is available on the Company’s website, .

Financial review

  • The loss after tax for the Period reduced to $11.8 million or 7.76 cents per share (FY2020: loss after tax of $12.2 million or 8.55 cents per share);
  • Contributing to the loss of $11.8 million were non-cash charges of $9.6 million (FY2020: $4.3 million) which includes the following: - net impairment expense of $6.8 million (FY2020: $1.3 million) - depreciation and amortisation of $2.6 million (FY2020: $2.6 million) - share based payment expense of $0.2 million (FY2020: $0.4 million).
  • Revenue of $20.7 million (FY2020: $17.2 million) and cost of sales of $20.3 million (FY2020: $18.3 million) resulted in a gross profit of $0.4 million (FY2020: gross loss of $1.1 million) for the Period;
  • Operating cash flows of $1.7 million generated by the Uitkomst metallurgical and thermal colliery;
  • The Vele semi-soft coking and thermal coal colliery remained on care and maintenance and the carrying value of the colliery was assessed during the Period, resulting in an impairment of $6.5 million (FY2020: nil);
  • A reduction in the number of employees and general overhead expenses resulted in
    administrative expenses declining by $2.3 million, or 31% on FY2020;
  • Net interest expense arising from borrowings and finance leases reduced to $1.6 million (FY2020: $3.2 million);
  • The Company issued 13,331,433 new shares raising $1.0 million in August 2020;
  • An additional $2.8 million (ZAR40 million) was drawn from the previously available R240 million ($16.8 million) Industrial Development Corporation (IDC) facility increasing the total drawn down amount to R160 million ($11.2 million) and the undrawn balance of R80 million ($5.6 million) was cancelled;
  • The repayment date of the R160 million ($11.3 million) IDC loan was extended to 31 January 2022 (previously due 31 July 2021);
  • If the Company does not repay the loan by the repayment date (31 January 2022) and any further extension is not granted, the IDC Facility may be converted into equity of MC Mining or its subsidiary, Baobab Mining and Exploration; and
  • Unrestricted cash balances at year-end of $3.2 million (FY2020: $2.7 million).