MC Mining interim financial report highlights

MC Mining Limited (MCM) has released its interim financial report for the six months ended 31 December 2023, showcasing a significant 80% increase in revenue to $25.2 million despite a 58% decline in average API4 thermal coal prices. The company also saw an increase in overall Cost of Sales to $24.1 million, primarily due to higher volumes of coal sold at Uitkomst and the recommencement of operations at Vele.

Executive commentary on financial performance and strategic initiatives

The strong revenue growth through the period was very pleasing given the challenging coal market conditions. Our ability to continue to move product is important and we are seeing some signs of increased demand from thermal coal buyers. Although having some impact on our overall result, we continued to make worthwhile, long-term investment decisions in our flagship Makhado Project, which we believe will benefit shareholders in the future. The Company achieved these results whilst maintaining a focus on safety with no incidents recorded during the period.

Summary of interim financial report and future outlook

MC Mining's interim financial report demonstrates a commendable revenue growth despite challenging coal market conditions. The company's strategic focus on the Makhado Project and operational cost management reflects its commitment to long-term value creation. With ongoing progress in the development of the Makhado Project and the potential to produce coal earlier than anticipated, MC Mining aims to secure necessary funding and continue its growth trajectory. The company's response to the takeover offer and the anticipated issuance of a Supplementary Target's Statement and accompanying Independent Expert's Report indicate a proactive approach to shareholder value protection and transparency.