RE: Guidance Under Review6 May 2026 16:29
@JuniorLassonde
Molefe is building large stockpiles of low-grade ore for the on-site upgrade plant, trade receivables are up (prepayments and sales timing), and there are short-term trade payables fluctuations. These are classic working-capital swings in any mining expansion.
“These stockpiles need to be processed further and looking at the half year results process cost both fixed and variable are increasing but cause they from our mine their cost of sales would be lower probably a recovery of cost for mining them.
I do not see any prepayments on our SFP but I do not see our trade payables and other financial liabilities increasing and the banking facilities liability”.
However, the headline numbers still show clear improvement:
Copper EBITDA turned positive at +US$0.2m (vs –US$0.8m in H1 FY2025).
“This EBITDA of 193K needs to be looked at if you remove the 507k interest accrual from the group disposal then it is still a negative EBITDA from operations. Page 8 HFY2026”
Group EBITDA +US$2.0m (vs –US$2.9m).
Page 8 HFY2026
“1.8 million of this EBITDA is accrual and depreciation charges from an entity that produces no revenue or cashflow but incurs actual cashflows outflows
Refer to point one above remove the 193k and then this number is also negative for copper
Page 21 HFY2026 You will see the breakdown of income between copper and other.
Coppers cashflows must cover the salaries and operational expenses of others as well”.
There is not an IFRS or ISA rule for EBITDA calculation what can be included and excluded.
Despite US$11.8m capex in Zambia, the net cash position rose to US$11.5m (from US$4.6m at 30 June 2025).
“The cash position of 11.5 million I explained once the working position reverses this position will not be able to cover the Absa financing facility”
Net debt reduced to US$8.0m. page 20 HFY26
“This net position does not include trade payables. This only shows our debt to our provider of finance and not service providers. This also shows our cash position cannot cover our short-term liability position from our bank financing.
It has been reduced but we are still at the mercy of our bankers and charged expensive interest cause of the increase risk”.
The US$25m SA disposal proceeds (already received, on schedule) were always intended to fund exactly this transition: Zambia expansion + debt reduction. They covered the capex, the working-capital build, and allowed the group to reduce bank facilities by US$10.1m. The ABSA revolving credit facility stands at US$7.5m (not a new emergency loan — it’s the remaining Mauritius RCF that has been in place).
“Look at the Net Debt note 4.1 page 19 and look at the cash value and then see how much debt we owe our providers of finance”.
“Use of proceeds The use of proceeds from the payment consideration, net of transaction costs, will together with existing resources and operating cash flows, be employed to reduce existing bank facilities of up to US$8.3 million”
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