30th Sep 2022 12:13
(Alliance News) - MC Mining Ltd on Friday reported that its annual loss widened and warned of "material uncertainty" due to a huge debt load.
The Western Australia-based coal miner with projects in South Africa posted pretax loss of USD20.7 million for the financial year ended June 30, worsening from USD12.1 million in the prior year.
Revenue increased by 14% to USD23.5 million from USD20.7 million.
Loss per share expanded to 12.65 US cents from 7.76 cents, while headline loss per share deteriorated to 3.59 cents from 3.33 cents.
No dividend was declared, as was the case in the previous year.
The Uitkomst Colliery produced 470,597 tonnes, down from 490,100 tonnes of run of mine coal as a result of challenging geological conditions.
MC Mining exported only 22,169 tonnes of coal through the Durban port at the end of June under the terms of the coal sales & marketing agreement with Overlooked (Pty) Ltd. No exports were made last year.
Thermal coal prices increased significantly during the 2022 financial year, surging to USD327 per tonne as the end of June 30 from USD115 per tonne in July 2021.
MC Mining warned that there is a material uncertainty that may cast significant doubt on its ability to continue as a going concern, saying it may be unable to realise its assets and discharge its liabilities in the normal course of business.
But the group said there are reasonable grounds to believe that it will be able to continue to meet its debts as and when they fall due.
Total liabilities were at USD48.3 million as at June 30, remaining flat. Cash and cash equivalents fell to USD2.9 million from USD3.2 million.
The Industrial Development Corp of South Africa agreed to extend the repayment date for the ZAR160 million, or USD9.8 million, loan plus accrued interest to November 30.
Shares in MC Mining shed 1.7% at 25.55 pence in London on Friday afternoon, while its counter fell by 1.2% to ZAR5.58 in Johannesburg.
By Artwell Dlamini; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
MCM.L