MC Mining (MCM) H1 2025 earnings summary

Executive summary

• Focused on mining, exploration, and development of coking and thermal coal assets in South Africa, with principal assets including Uitkomst Colliery, Makhado Project, Vele Aluwani Colliery, and three exploration projects in the Soutpansberg Coalfield.

• Loss after tax increased by 40% to $8.4 million for the six months ended 31 December 2024, with headline loss per share up 26% year-over-year to 1.83 cents.

• Revenue declined 67% to $8.4 million, driven by lower production and sales volumes at Uitkomst Colliery.

• Uitkomst Colliery experienced a fatality and two LTIs, with production and sales volumes significantly down due to geological challenges and lower coal prices.

• Makhado Project advanced to development phase, with all regulatory approvals in place and capital expenditure reclassified accordingly.

Financial highlights

• Revenue for the half-year was $8.4 million, down from $25.2 million year-over-year.

• Gross loss of $4.2 million compared to a gross profit of $1.1 million in the prior period.

• Loss after tax attributable to owners was $8.3 million (1.83 cents/share), up from $5.8 million (1.45 cents/share) year-over-year.

• Cash and cash equivalents at period end were $3.9 million, up from $0.2 million at June 2024.

• No dividends declared or paid during the period.

Outlook and guidance

• Directors believe the group will have sufficient cash to fund operations for at least 12 months, supported by the Kinetic equity raise and IDC loan extension.

• Makhado Project development is expected to deliver first coal within the 2025 calendar year.