MC Mining reports increased loss amid operational challenges

MC Mining Limited reported a loss after tax of $36 million for the full year ended June 30, 2025, a 147% increase from $14.6 million in FY2024. This resulted in a loss of 7.06 cents per share. Revenue for the period decreased by 52% to $17.5 million, down from $36.7 million in FY2024, leading to a gross loss of $6.6 million compared to a gross profit of $0 million in the prior year.

Contributing to the loss were non-cash charges of $25.8 million, including a net impairment expense of $24.3 million. Uitkomst Colliery's run-of-mine (ROM) coal production decreased by 22% to 390,788 tonnes, and total sales tonnages fell by 23% to 269,877 tonnes. Production costs per saleable tonne increased by 44% to US$92/t.

The company received a strategic investment from Kinetic Development Group (KDG), which will result in KDG acquiring a 51% controlling interest in MC Mining. The first closing was completed on August 30, 2024, with KDG subscribing for a 13.04% equity interest for US$12.97 million. The Makhado Project remains a flagship asset, with project commencement aiming for first coal by the first quarter of 2026.