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(Alliance News) - Coal producer MC Mining Ltd on Wednesday reported a significantly narrowed annual loss following reduced impairment charges.
For the financial year that ended June 30, MC Mining reported a pretax loss of USD12.9 million versus USD33.5 million the year before.
The company's annual net impairment expense dropped to USD1.3 million from USD21.9 million the year before.
Revenue dropped 35% to USD17.2 million from USD26.4 million.
The Uitkomst metallurgical and thermal colliery produced 431,354 tonnes of run-of-mine coal during the year, down 8.7% from 472,647 tonnes the year before.
The colliery sold 254,193 tonnes, down 18% compared to 309,401 tonnes the year before.
Uitkomst's average revenue per tonne declined 20% to USD65 per tonnes from USD81 per tonnes.
MC's Acting Chief Executive Brenda Berlin said: "The spread of Covid-19 in South Africa in 2020 has had significant adverse effects and resulted in the company, its employees and contractors having to adapt to new operating environments. MC Mining has followed government recommendations and implemented measures to identify and minimise the risk of Covid-19 transmission on our sites."
The company noted, however, it made "significant progress" prior to the lockdown.
"The development of the Makhado project will result in MC Mining being the pre-eminent South African producer of hard coking coal, a key ingredient contributing to the manufacture of steel and a commodity that trades at a significant premium to thermal coal. The two phases of the Makhado project have a combined life-of-mine in excess of 46 years and the project’s long term viability is supported by forecast economic development and urbanisation, driving increases in per capita steel usage," CEO Berlin added.
Shares in MC Mining were down 3.6% in London on Wednesday at 6.50 pence. In Johannesburg, the shares were 13% lower at ZAR1.14.
By Paul McGowan; paulmcgowan@alliancenews.com
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