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(Alliance News) - MC Mining Ltd said on Friday coal production at its majority-owned colliery declined in the fourth quarter due to "ongoing major maintenance" and high prices.
The Western Australia-based coal miner with projects in South Africa said run-of-mine coal production at Uitkomst, in which it has 70% stake, was 7% lower at 119,005 tonnes for the fourth quarter to June 30 from 127,927 tonnes in the prior year.
As a result of ongoing major maintenance and the high coal prices, Uitkomst did not receive any orders during the quarter from its largest customer in South Africa.
"The increase in coal prices were not accepted by the South African domestic coal market," the company said.
International thermal coal prices have hit record highs amid Russia's invasion of Ukraine.
MC Mining said 22,169 tonnes of coal, compared to none last year, were at the Durban port at the end of June for exporting in July/August 2022.
The company recorded 34,126 tonnes of coal sales during the quarter, down 62% from 90,858 tonnes.
Revenue decreased to USD80 per tonne from USD85.
MC Mining said it was pursuing several alternative strategies to raise the required funding for its flagship Makhado hard coking coal project, with a target date to conclude during the third quarter of this year.
The project has an estimated capital cost of ZAR625 million.
Shares in MC Mining shed 9.6% at 12.20 pence in London on Friday afternoon, while its counter fell by 4.6% to ZAR3.05 in Johannesburg.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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