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(Alliance News) - MC Mining Ltd's shares jumped on Friday following solid third quarter production and sales amid a fall in production costs.
MC Mining shares were up 6.7% to ZAR1.27 each in Johannesburg on Friday morning, while its London shares were 15% higher at 6.35 pence.
In the quarter to end-June, Uitkomst run-of-mine production soared to 127,927 tonnes from 41,536 tonnes a year ago, while metallurgical & thermal coal sales were up sharply to 84,834 tonnes from 16,707 tonnes. Uitkomst is located in KwaZulu-Natal.
These results were off of a low base due to the South African government-imposed Covid-19 lockdown for a large part of the comparative period, the company noted.
Revenue per tonne increased 47% to USD84.91 per tonne from USD57.88 per tonne a quarter prior.
Average API4 coal prices were 91% higher at USD105 per tonne from USD55 per tonne a year ago, thanks to increased global demand.
Production costs per saleable tonne fell quarter-on-quarter 45% to USD56.74 from USD103.10. "The significantly higher financial 2020 fourth quarter comparative production costs were due to lower tonnes mined during the Covid-19 lockdown enforced mine closure," MC Mining said.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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