15th Mar 2021 10:54
(Alliance News) - MC Mining Ltd on Monday reported a narrowed loss for the first half of its financial year, due to lower costs and impairments, in spite of a drop in revenue.
For the six months to the end of December, the coal miner made a post tax loss of USD2.7 million, narrowed from USD7.1 million the same period the year before.
This was from a drop in employee benefit expenses to USD1.0 million from USD3.0 million, as well as an impairment reversal for the period, compared to a loss of USD1.2 million.
Revenue for the period declined 22% to USD8.8 million from USD11.4 million, as the production of run of mine coal dropped 6% to 246,229 tonnes. As a result, total sales declined 14% year-on-year to 139,103 tonnes from 161,821 tonnes.
At the end of March 2020, due to lockdown restrictions being imposed in South Africa, the Uitkomst metallurgical and thermal coal mine was placed under care and maintenance.
Although mining at the colliery started to ramp up in July, high levels of absenteeism due to Covid-19 preventative measures led to the decline in output. Average API4 thermal coal prices dropped to USD64 per tonne from USD69 per tonne the prior year.
Shares in MC Mining were down 6.7% at 7.00 pence on Monday in London, while its Johannesburg shares were 14% lower at ZAR1.33.
By Dayo Laniyan; [email protected]
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