MC Mining (MCM) Q1 2025 TU earnings summary

Executive summary

• Recorded one fatality and one lost-time injury at Uitkomst Colliery, highlighting ongoing safety challenges and focus on zero harm initiatives.

• Uitkomst Colliery's ROM coal production dropped 35% year-over-year to 90,069 tonnes due to geological and equipment issues.

• Limited activities at Makhado, Vele, and Greater Soutpansberg Projects; Vele operations remain suspended.

• Depressed thermal coal prices persisted, while premium steelmaking hard coking coal prices remained elevated but lower than the prior year.

• Corporate changes included new leadership appointments and a major equity subscription agreement with Kinetic Development Group.

Financial highlights

• Net revenue per tonne at Uitkomst fell 22% year-over-year to $67/t, while production cost per saleable tonne rose 67% to $98/t.

• Cash and available facilities at period end totaled $10.8 million, up from $1.2 million in the previous quarter.

• Net cash used in operating activities was $4.36 million for the quarter.

• Proceeds from equity issues and borrowings totaled $14.2 million during the quarter.

Outlook and guidance

• Makhado Project development and funding activities are ongoing, with the project expected to significantly increase future production.

• Environmental and water use licensing studies for Greater Soutpansberg Projects are set to begin in H1 CY2025.