MC Mining, an JSE-listed Australia-based coal exploration, development and mining company operating in South Africa, has temporarily suspended its Uitkomst Colliery to avert further cash losses.
Image: Supplied
JSE-listed MC Mining, previously known as Coal of Africa, has improved its attributable loss by 2% to $8,1 million or 1,22 cents per share in the six months to December 31, after lower sales volumes at Uitkomst mine - which has since temporarily suspended operations - and weaker thermal coal prices.
The company said in results released on Friday that revenue fell by 22% to $6,6 million. Cost of sales decreased by 12% to $11,1m, resulting in a gross loss of $4,5m, which was slightly worse than the $4,2m gross loss at the same time last year.
Administrative expenses increased by 3% to $4,5m. Finance costs fell by 55% to $0,4m. Cash and cash equivalents of $2,9 million compared to $7,4 million at June 30, 2025.
Net asset value increased by 23% to $101,9 million. The headline loss per share improved by 33% from 1,83 cents to 1,22 cents. No dividend was declared for the six month period.
On February 2, 2026, the board approved the temporary suspension (hibernation) of mining and processing operations at Uitkomst, with an intended effective date of March 1, 2026, subject to completion of statutory, labour, and regulatory processes.
The suspension aims to stem ongoing cash losses and preserve optionality for restart. Production at the metallurgical and thermal coal colliery had fallen 24% to 140,121 tons in the first half to end-December.
Own run-of-mine sales tonnages fell by 20% to 87,447 tons. Middlings sales were down by 100% to 12,995 tons. Production costs per saleable ton increased by 20% to R111.
Some 1,057 tons of high-quality coal, versus 1,799 tons at the same time last year, was stockpiled at Uitkomst at the end of December 2025.
Uitkomst generated sales revenue of $6,6m versus $8,4m at the end of the 2025 interim period. Uitkomst's revenue per ton increased to $75 from $69, primarily due to a change in product mix and market pricing, despite lower production volumes driven by geological challenges.
The lower coal production volumes contributed to the 20% increase in production costs.
Meanwhile, the Makhado Project remains on track for hot commissioning of the CHPP (coal handling and preparation plant) in April 2026, representing a milestone in transitioning MC Mining into a primary South African producer of premium hard coking coal.
About 1,3 million bench cubic metres of overburden had been mined to date to expose ROM on the project for commissioning. Steelwork, mechanical and equipment installation at the coal plant has advanced. The permanent access bridge across the Mutamba River has been commissioned. Progress was made on the 14km, 22kV overhead power line, including delivery of transformers.
At Vele Aluwani Colliery, operations remain suspended pending the conclusion of a re-engineered business plan. Remaining finished product stockpiles were disposed of at a nominal value during the period.
On the Greater Soutpansberg Projects, activities included prioritising areas for future development and preparing for environmental and water licence applications were expected to progress during the first half of this calendar year.
A further R20m repayment was made to the Industrial Development Corporation (IDC) loan during the period; the outstanding IDC balance at December 31, was R180m.
Ms Yi (Christine) He was appointed MD & CEO, effective October 1, 2025.
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