MC Mining (MCM) H2 2025 earnings summary

Executive summary

• Loss after tax increased by 147% to $36 million for FY2025, driven by higher non-cash charges and impairments.

• Revenue declined 52% year-over-year to $17.5 million, with a gross loss of $6.6 million.

• Significant corporate developments included a strategic investment by Kinetic Development Group (KDG) and a settlement agreement with the IDC.

• The Makhado Project advanced toward first coal production in Q1 2026, with critical agreements signed.

Financial highlights

• Non-cash charges rose to $25.8 million, including $24.3 million in impairment expenses.

• Administrative expenses fell 55% to $6.9 million, mainly due to lower employee, professional, and overhead costs.

• Finance costs increased 7% to $1.6 million.

• Unrestricted cash at year-end was $7.4 million, up from $0.2 million.

• Net asset value rose 10% to $83.2 million.

Outlook and guidance

• Directors believe current cash reserves, KDG funding, and operational improvements will support obligations for at least 12 months, though material uncertainty remains until Makhado is commissioned.

• Uitkomst Colliery Turnaround Plan aims to reduce costs and improve profitability in FY2026.

• Additional working capital facility of R250 million is being pursued.