MC Mining Ltd on Tuesday reported an increase in coal production in the first quarter, even though prices continued to plunge.
The Western Australia-based coal miner in South Africa owns Uitkomst Colliery, an operating metallurgical and thermal coal mine, and Makhado project, an exploration and evaluation asset.
For the first quarter that ended September 30, production at the Uitkomst steelmaking and thermal coal mine rose by 10% to 139,192 tonnes from 126,053 tonnes a year earlier.
Uitkomst sold 100,449 tonnes of coal, up 18% from 84,801 tonnes.
As at September 30, available cash and facilities was $5.1 million, down from $8.8 million at June 30.
MC Mining said thermal coal prices continued to decline, averaging $109 per tonne in the first quarter compared to $115 per tonne in the fourth quarter and $325 in first quarter last year.
However, premium steelmaking hard coking coal prices remained elevated, averaging $258 per tonne in the first quarter versus $250 in the corresponding quarter last year.
The cooal producer said it had made steady progress during the first quarter on critical early works activities at the Makhado steelmaking hard coking coal project. It said it was advancing the detailed design of the coal handling and processing plant and related infrastructure.
After September 30, the company said it had ‘positive engagement’ with the Industrial Development Corp of South Africa Ltd, which agreed to extend the repayment date for the R 160 million loan plus interest, to September 30, 2024.
Shares in MC Mining rose 5.4% to R 1.75 on Tuesday afternoon in Johannesburg. In London, they shed 6.7% to 7.00 pence, however.
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