MC Mining (MCM) H1 2026 earnings summary

Executive summary

• Loss after tax attributable to owners was $8.1 million for H1 FY2026, slightly improved from $8.3 million loss in H1 FY2025, with headline loss per share improving by 33% to 1.22 cents.

• Revenue declined 21–22% year-over-year to $6.6 million, mainly due to lower sales volumes and weaker thermal coal prices at Uitkomst Colliery.

• Uitkomst Colliery production and sales volumes fell sharply; ROM production down 24% to 140,121 tonnes, sales volumes down 28%, and operations to be suspended from March 2026 due to continued losses.

• Makhado Project advanced construction, targeting hot commissioning in April 2026, with significant capital investment and over 1.3 million BCM overburden removed.

• No fatalities and improved safety performance, with Makhado achieving over 1,000 days LTI-free.

Financial highlights

• Revenue: $6.6 million (down from $8.4 million year-over-year).

• Gross loss: $4.5 million (vs. $4.2 million loss prior year); cost of sales decreased 12% to $11.1 million.

• Cash and cash equivalents: $2.9 million at 31 Dec 2025 (down from $7.4 million at 30 June 2025); net asset value increased 23% to $101.9 million.

• Net cash used in operating activities: $5.0 million (vs. $7.7 million prior year).

• Administrative expenses rose 3% to $4.5 million; finance costs dropped 55% to $0.4 million.

Outlook and guidance

• Makhado Project commissioning expected in April 2026, positioning the group as a leading South African HCC producer.

• HCC market outlook remains positive, supported by Asian steel demand and supply constraints.

• Environmental and water licence applications for Greater Soutpansberg Projects expected to progress in H1 CY2026.

• Thermal coal prices softened due to increased supply and seasonal demand reductions.