(Alliance News) -Â MC Mining Ltd reported a widened loss for its first half as revenue slipped by a quarter.
Revenue was down 25% to USD11.4 million in the six months to December 31 with the firm's pretax loss widened sharply to USD7.3 million from USD3.0 million.
As well as the lower revenue, administrative expenses were up to USD5.4 million from USD4.8 million.
Uitkomst's run-of-mine coal production "pleasingly" increased 11% in the period, to 262,696 tonnes due to "optimisation initiatives and changes in mine management".
The company said it completed "significant milestones" required for the development of its Makhado project.
"The first step was a USD17.4 million term loan from the IDC and reflects their support for the project. This loan is a significant contribution towards the securing the USD37 million required to develop phase 1. Following this, discussions with potential funders for the balance are progressing and we anticipate that this process should be completed in H1 CY2020, with construction commencing in Q3 CY2020. The completion of phase 1 will result in MC Mining being the pre-eminent South African producer of hard coking coal," said acting Chief Executive Brenda Berlin.
In London, MC Mining shares were up 1.9% at 10.70 pence. In Johannesburg, the stock was untraded at ZAR1.80.
By Lucy Heming;Â lucyheming@alliancenews.com
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Mc Mining (MCM)