26th Mar 2020 15:07
(Alliance News) - MC Mining Ltd said Thursday its Uitkomst Colliery will be placed on care and maintenance during the South Africa lockdown period.
MC said its Makhado, Vele and Greater Soutpansberg projects will also be scaled back during the three-week national shutdown.
"It is worth noting that the Uitkomst Colliery is a mechanised underground operation and upon completion of the lockdown period, it will be possible to ramp-up to steady state production levels within a relatively short timeframe," MC said.
The company added: "However, given the continued uncertainty around the outlook for control of the coronavirus in South Africa, 2020 production guidance is suspended until the company is in a better position to quantify the full impact of the lockdown."
MC said it has available cash of USD1.0 million, as well as a USD1.1 million bank facility. MC also has the USD7.0 million second tranche of the existing Industrial Development Corporation of South Africa loan available for drawdown.
Chief Executive Brenda Berlin said: "MC Mining supports all measures to limit the impact of Covid-19 and the lockdown has impacted our Uitkomst Colliery as well as our corporate office and project sites.
"We anticipate that activities at all of the sites will resume as soon as it is safe to re-commence. Discussions with potential funders for Phase 1 of our flagship Makhado hard coking coal project will continue during the Lockdown period. The company still aims to finalise the composite debt/equity package for Phase 1 during the first half of 2020 with construction commencing later this year."
Shares in MC Mining were untraded in London on Thursday but last closed at 8.30 pence each. In Johannesburg, the shares were down 19% at ZAR1.22 each.
By Paul McGowan; [email protected]
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