Wrap Text
Results for the full year ended 30 June 2025
MC Mining Limited
Previously Coal of Africa Limited
(Incorporated and registered in Australia)
Registration number ABN 008 905 388
ISIN AU000000MCM9
JSE share code: MCZ
ASX/AIM code: MCM
ANNOUNCEMENT
29 September 2025
RESULTS FOR THE FULL YEAR ENDED 30 JUNE 2025
MC Mining Limited (MC Mining or the Company) is pleased to provide its audited financial statements
for the year ended 30 June 2025 (the Period). All figures are denominated in United States dollars
unless otherwise stated and the full report is available on the Company's website,
https://www.mcmining.co.za/investors-and-media/financial-information/year-end-report-fy2025.
Financial review
• The loss after tax for the Period increased by 147% to $36 million or 7.06 cents per share (FY2024:
loss after tax of $14.6 million or 3.54 cents per share);
• Contributing to the loss of $36 million were non-cash charges which increased by $22.5 million to
$25.8 million (FY2024: $3.3 million) which includes the following:
o net impairment expense of $24.3 million (FY2024: $0.9 million)
o depreciation and amortisation decreased by to $1.4 million (FY2024: $1.7 million)
o share based payment expense decreased by 100% to $0 million (FY2024: $0.7 million).
• Revenue for the Period decreased by 52% to $17.5 million (FY2024: $36.7 million) and cost of sales
decreased by 34% to $24.1 million (FY2024: $36.5 million) resulting in a decrease in gross profit
(FY2025: $6.6 million gross loss vs FY2024: $0 million);
• An impairment of $12.3 million and $12 million was recorded on Uitkomst and GSP respectively
in the current year (FY2024: $0.9 million was recorded);
• Administrative expenses decreased by 55%, from $15.4 million in FY2024 to $6.9 million in the
reporting period due to:
o Employee expenses decreasing by 48% to $3.4 million (FY2024: $6.6 million);
o The professional fees decreased by 38% to $0.8 million (FY2024: $1.3 million);
o Overhead expenses decreased by 67% to $2.3 million (FY2024: $7.0 million);
• Finance costs from borrowings and finance leases increased by 7% to $1.6 million (FY2024: $1.5
million);
• Unrestricted cash balances at year-end of $7.4 million (FY2024: $0.2 million).
• Net asset value increased by 10% to $83.2 million from $75.4 million in the prior corresponding
period;
• Headline loss per share decreased by 21% from $0.03 in FY2024 to $0.03 in FY2025;
• Basic and diluted loss per share increased by 99% from $0.04 in FY2024 to $0.07 in FY2025;
• No dividend was declared for the year ended 30 June 2025 (FY2024: nil); and
• Attention is drawn to the disclosure in the annual financial statements and below on the going
concern assumptions.
Operational review
Safety
• Health and safety remains the Group's highest priority, with the ongoing goal of achieving zero
harm. During FY2025, the Group recorded one fatality at the Uitkomst Colliery (FY2024: zero)
following a fall-of-ground incident in July 2024. The Group also recorded two lost-time injuries
(LTIs) for the year (FY2024: two LTIs).
Uitkomst Colliery
• The operational results for the Uitkomst metallurgical and thermal coal colliery (Uitkomst or
Uitkomst Colliery) compared to the preceding period are detailed below:
FY2025 FY2024 %
Production tonnages
Uitkomst ROM (t) 390,788 498,589 (22%)
Inventory volumes
High quality duff and peas at site (t) 1,518 - 100%
1,518 - 100%
Sales tonnages
Own ROM (t) 256,882 340,203 (24%)
Middlings sales 12,995 10,474 24%
269,877 350,677 (23%)
Financial metrics
Net revenue/t ($) 72 79 (9%)
Production costs/saleable tonnes ($)^ 92 64 44%
^all costs are incurred in South African Rand
• The Uitkomst Colliery produced 390,788 tonnes (t) (FY2024: 398,589t) of run of mine (ROM) coal
during the twelve months to 30 June 2025, 22% lower than the previous year;
• 1,518t (FY2024: nil t) of high-quality coal was stockpiled at Uitkomst at the end of June 2025;
• Uitkomst sold 269,877t of coal in FY2025 (FY2024: 350,677t) comprising 256,882t (FY2024:
340,203t) of premium duff and sized peas and 12,995t (FY2024: 10,474t) of high ash, coarse
discard coal. Uitkomst generated sales revenue of $17.5 million (FY2024: $27.7 million) for the
year;
• The Uitkomst net revenue per tonne decreased to $72/t (FY2024: $79/t); and
• The lower coal sales and production volumes contributed to the 44% increase in production costs
per saleable tonne (FY2025: US$92/t vs. FY2024: US$64/t)
Makhado Project
• The Makhado Project remains MC Mining's flagship asset and is fully licensed and shovel-ready.
FY2025 marked a significant milestone for the Group with the commencement of project to
achieve first coal by the first quarter of 2026. Significant on-site work was undertaken and critical
agreements were entered into in terms of the coal handling and processing plant (CHPP) and the
contract mining agreements.
Vele Aluwani Colliery
• Activities at Vele Colliery remained minimal, with the focus on maintaining the assets in
compliance with regulatory requirements and ensuring they are ready for development when
market conditions improve.
Greater Soutpansberg Projects
• Exploration and development of the three Soutpansberg coalfield projects namely the Chapudi,
Mopane and Generaal project areas, is planned to underpin the long-term growth of the
Company;
• The South African Department of Mineral Resources & Energy has granted mining rights for the
three project areas comprising the GSP, which collectively contain over 7.0 billion tonnes in situ
of Inferred coal resources (GTIS);
• Exploration and development of the GSP could position the Company to being a significant
steelmaking coal supplier for both the domestic and export markets; and
• Activities at GSP remained minimal, with the focus on maintaining the assets in compliance with
regulatory requirements and ensuring they are ready for development when market conditions
improve.
Corporate features
• Strategic Investment by Kinetic Development Group (KDG)
A significant corporate milestone during FY2025 was the strategic investment by KDG, which will
result in KDG acquiring a 51% controlling interest in MC Mining once all funding tranches are
completed. The First Closing was successfully completed on 30 August 2024, with KDG
subscribing for a 13.04% equity interest in MC Mining for US$12.97 million. The Second Closing,
valued at approximately US$77 million, was approved by shareholders at an extraordinary
general meeting on 23 January 2025 and will be paid in nine staged instalments aligned to
project milestones. The Competition Commission granted merger clearance on 13 December
2024 with certain conditions,
enabling this transformative transaction.
• Settlement agreement with Industrial Development Corporation of South Africa Limited (IDC)
A settlement agreement was entered into with the IDC on the 27th of March 2025 for the
settlement of the loan agreement entered into in March 2017. In FY2025, ZAR 120 million was
repaid in terms of the settlement agreement.
• Interim Funding Arrangements
To support operations during the year, MC Mining entered into an US$0.7 million unsecured
loan facility with Eagle Canyon International Group Holding (Hong Kong) Limited, an entity
associated with Interim CEO Christine He. This facility supplemented existing working capital
lines and provided additional liquidity pending the staged KDG funding. The loan was settled in
full in FY25.
• Board and Governance Changes
FY2025 saw a major refresh of the Board, aligning with the Company's new strategic direction.
Appointments: Christine He assumed the role of Interim Managing Director & CEO on 1 July
2024. In August and September 2024, the Company appointed Muhui (Chris) Huang, Bill
Pavlovski, and Dr Steele West as Non-Executive Directors. Further, on 15 April 2025, Lanlan (Lily)
Wang and Dr Huoxin (Hevin) Wang joined the Board, both bringing strong financial and
corporate governance expertise aligned with KDG's investment.
Resignations: An Chee Sin resigned as Non-Executive Director effective 15 April 2025.
• Capital Structure and Cash Position
The completion of the first KDG subscription tranche increased the Company's issued share
capital by approximately 62.1 million shares. As a result, available cash and facilities peaked at
US$12.9 million at 30 September 2024, compared to just US$0.2 million at 30 June 2024, before
being drawn down for operational and project activities. This improved liquidity, together with
the upcoming KDG tranches, positions MC Mining to advance its flagship Makhado Project.
Going concern
Attention is drawn to the disclosure in the annual financial statements on the going concern
assumption (refer note 1), noting that there is a material uncertainty that may cast significant doubt
on the Group's ability to continue as a going concern and, therefore, that the Group may be unable to
realise its assets and discharge its liabilities in the normal course of business. The directors are satisfied
however, at the date of signing the annual financial report, that there are reasonable grounds to
believe that the Group will be able to continue to meet its debts as and when they fall due and that it
is appropriate for the financial statements to be prepared on a going concern basis. The directors have
based this on a number of assumptions which are set out in detail in note 1 to the annual financial
report. The Directors are of the view that reaching an agreement with the IDC in terms of the
repayment plan and the KDG, share subscription reduces the going-concern uncertainty. Material
uncertainty will only be removed once Makhado is successfully commissioned and generating positive
cashflows. In order to meet its working capital requirements, the Group is exploring and progressing
several alternative strategies to raise additional funding including, but not limited to:
• finalising the remaining equity subscription by KDG as per the staged funding arrangement that was
approved by shareholders on 23 January 2025 to support both the construction of the Makhado
Project and ongoing working capital requirements.
• concluding the well advanced application for additional working capital facility in the first quarter of
calendar year 2026 for R250 million.
• The Directors also note that the Uitkomst Colliery Turnaround Plan, announced on 15 July 2025, is
expected to reduce operating costs and improve profitability through workforce optimization,
improved plant efficiencies, and securing long-term offtake agreements. These operational
improvements are anticipated to enhance cash generation in FY2026.
While a material uncertainty remains due to reliance on the timely receipt of future KDG tranches and
execution of operational plans, the Directors believe that these measures, together with the Group's
current cash reserves and available facilities, will enable the Company to meet its obligations as they
fall due for at least 12 months from the date of approval of these financial statements. Accordingly,
the financial statements continue to be prepared on a going concern basis.
Subsequent events
• Uitkomst Colliery Turnaround Plan
After year-end, MC Mining commenced implementation of a revised business plan (Turnaround Plan)
at the Uitkomst Colliery. The plan focuses on improving operational efficiency through underground
mining layout reconfiguration, modifications to the CHPP to enhance yields, and reducing workforce
numbers from 430 to 366 employees with minimal forced retrenchments. The strategy also aims to
secure longer-term coal offtake agreements to stabilise pricing and reduce earnings volatility.
• KDG funding
The staged Second Closing of KDG's strategic investment, totalling US$77 million, remains in progress
after yearend. Instalments will continue to be released in line with Makhado Project development
milestones, ensuring that project funding is available as construction activities advance.
Authorised by
Yi (Christine) He
Managing Director & Chief Executive Officer
This announcement has been approved by the Company's Disclosure Committee.
All figures are in South African rand, United States dollars or Australian dollars unless otherwise stated.
This announcement has been approved by the Company's Disclosure Committee.
For more information contact:
Bill Pavlovski Company Vision Corporate (Pty) bill.pavlovski@mcmining.co.za
Secretary Ltd
BSM Sponsors Proprietary Limited is the nominated JSE Sponsor
About MC Mining Limited:
MC Mining is an ASX/JSE-listed coal exploration, development and mining company operating in South Africa.
MC Mining's key projects include the Uitkomst Colliery (metallurgical coal), Makhado Project (hard coking coal).
Vele Colliery (semi-soft coking coal), and the Greater Soutpansberg Projects (coking and thermal coal).
Regulatory requirements
This short form announcement, which is the responsibility of MC Mining's directors, is only a summary of
information in the full announcement and does not contain full or complete details. Any investment decisions
by shareholders and/or investors should be based on consideration of the full announcement.
The full announcement can be found at this JSE CloudLink:
https://senspdf.jse.co.za/documents/2025/jse/isse/mcze/FY25.pdf
The full announcement is also available for viewing on the company's website at
https://www.mcmining.co.za/investors-and-media/financial-information/year-end-report-fy2025 or
a copy may be requested in person, at the company's registered office or the office of the sponsor, at no charge,
during office hours. Copies of the full announcement may also be requested from the Company's group investor
relations at investor@mcmining.co.za.
The information in this announcement has been extracted from the audited Group financial results for the year
ended 30 June 2025, but the short-form announcement itself has not been reviewed by the Company's auditors.
Forvis Mazars Assurance Pty Ltd, the group's independent auditor, has audited the consolidated annual financial
statements of the group from which the abridged consolidated results contained in this report have been
derived, and has expressed an unmodified audit opinion on the consolidated annual financial statements but
have drawn attention to a material uncertainty around the Going Concern.
A copy of the auditor's report is available for inspection at MC Mining Limited's registered office and is included
in the audited financial statements for the year ended 30 June 2025. Shareholders are therefore advised to
obtain a copy of the auditor's report and key audit matters together with the accompanying financial
information from MC Mining Limited's registered office.
Forward-looking statements
This Announcement, including information included or incorporated by reference in this Announcement, may
contain "forward-looking statements" concerning MC Mining that are subject to risks and uncertainties.
Generally, the words "will", "may", "should", "continue", "believes", "expects", "intends", "anticipates" or
similar expressions identify forward-looking statements. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from those expressed in the forward-looking
statements. Many of these risks and uncertainties relate to factors that are beyond MC Mining's ability to control
or estimate precisely, such as future market conditions, changes in regulatory environment and the behaviour
of other market participants. MC Mining cannot give any assurance that such forward-looking statements will
prove to have been correct. The reader is cautioned not to place undue reliance on these forward-looking
statements. MC Mining assumes no obligation and does not undertake any obligation to update or revise
publicly any of the forward-looking statements set out herein, whether as a result of new information, future
events or otherwise, except to the extent legally required.
Date: 29-09-2025 01:00:00
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