MCM.L Regulatory News (MCM)

Name of entity

MC Mining Limited

ABN

Quarter ended ("current quarter")

98 008 905 388

31 December 2019

1.

Cash flows from operating activities

1.1

Receipts from customers

5,222

11,062

1.2

Payments for

(a) exploration & evaluation

(929)

(1,679)

(b) development

-

-

(c) production

(3,666)

(9,017)

(d) staff costs

(1,742)

(2,650)

(e) administration and corporate costs

(1,160)

(2,265)

1.3

Dividends received (see note 3)

-

-

1.4

Interest received

39

91

1.5

Interest and other costs of finance paid

-

-

1.6

Income taxes paid

-

-

1.7

Research and development refunds

-

-

1.8

Other (provide details if material)

-

-

1.9

Net cash from / (used in) operating activities

(2,236)

(4,458)

2.

Cash flows from investing activities

-

-

2.1

Payments to acquire:

(a) property, plant and equipment

(164)

(326)

(b) tenements (see item 10)

-

-

(c) investments

(180)

(354)

(d) other non-current assets

-

-

2.2

Proceeds from the disposal of:

414

1,601

(a) property, plant and equipment

(b) tenements (see item 10)

-

-

(c) investments

879

879

(d) other non-current assets

-

-

2.3

Cash flows from loans to other entities

-

-

2.4

Dividends received (see note 3)

-

-

2.5

Other (provide details if material)-deferred consideration payment on acquisitions

(48)

(1,146)

2.6

Net cash from / (used in) investing activities

901

654

3.

Cash flows from financing activities

3.1

Proceeds from issues of shares

-

-

3.2

Proceeds from issue of convertible notes

-

-

3.3

Proceeds from exercise of share options

-

-

3.4

Transaction costs related to issues of shares, convertible notes or options

-

-

3.5

Proceeds from borrowings

-

-

3.6

Repayment of borrowings

(37)

(288)

3.7

Transaction costs related to loans and borrowings

-

-

3.8

Dividends paid

-

-

3.9

Other (provide details if material)

(475)

(655)

3.10

Net cash from / (used in) financing activities

(512)

(943)

4.

Net increase / (decrease) in cash and cash equivalents for the period

4.1

Cash and cash equivalents at beginning of period

5,250

8,843

4.2

Net cash from / (used in) operating activities (item 1.9 above)

(2,236)

(4,458)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

901

654

4.4

Net cash from / (used in) financing activities (item 3.10 above)

(512)

(943)

4.5

Effect of movement in exchange rates on cash held

156

(537)

4.6

Cash and cash equivalents at end of period

3,559

3,559

5.

Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter$USD'000

Previous quarter$USD'000

5.1

Bank balances

3,525

5,217

5.2

Call deposits

34

33

5.3

Bank overdrafts

5.4

Other (provide details)

5.5

Cash and cash equivalents at end of quarter (should equal item 4.6 above)

3,559

5,250

6.

Payments to directors of the entity and their associates

Current quarter$USD'000

6.1

Aggregate amount of payments to these parties included in item 1.2

714

6.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

6.3

Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Salary payments for the quarter made to the Executive directors and director fees paid to the Non-Executive directors.

7.

Payments to related entities of the entity and their associates

Current quarter$USD'000

7.1

Aggregate amount of payments to these parties included in item 1.2

7.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

7.3

Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

8.

Financing facilities availableAdd notes as necessary for an understanding of the position

Total facility amount at quarter end$USD'000

Amount drawn at quarter end$USD'000

8.1

Loan facilities

16,290

8,145

8.2

Credit standby arrangements

8.3

Other (please specify)

2,369

2,283

8.4

Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

$USD7.9 million facility of the $USD 15.8 million provided by the Industrial Development Corporation of South Africa to the company's subsidiary is still available for drawdown. The loan is payable on the third anniversary of each advance plus a real after tax rate of return of 16% on the advanced amount.

The $USD 2.4 million facility was secured during the 2019 financial year, from ABSA Bank. $USD 1.4 million of the facility is for short-term working capital requirements and potential expansion opportunities. The $USD1.4 million has a floating coupon at the South African Prime rate (currently 10.0% per annum) plus 1.0%, with the operating mine Uitkomst Colliery debtors ceded as security. The facility is subject to annual review. $USD1.3 of this facility was drawn at the end of the quarter.

The balance of the $USD2.4 million relates to an equipment lease facility that has been utilised. The lease facility has a five year term at the South Africa prime interest rate (currently 10% per annum)

9.

Estimated cash outflows for next quarter

$USD'000

9.1

Exploration and evaluation

-

9.2

Development

-

9.3

Production

(6,067)

9.4

Staff costs

(895)

9.5

Administration and corporate costs

(1,230)

9.6

Other

(507)

9.7

Total estimated cash outflows

(8,699)

10.

Changes in tenements(items 2.1(b) and 2.2(b) above)

Tenement reference and location

Nature of interest

Interest at beginning of quarter

Interest at end of quarter

10.1

Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced

10.2

Interests in mining tenements and petroleum tenements acquired or increased