JOHANNESBURG (miningweekly.com) – Coal exploration, development and mining company MC Mining on Thursday reported a normalised after-tax loss of $9.8-million in the 12 months to June 30, when the company achieved full integration of the cash generating Uitkomst thermal and metallurgical colliery, which sold $32.7-million worth of product at prices that rose during the period.

The Aim-, ASX- and JSE-listed company, which reported an after-tax loss of $8-million in the corresponding period last year, benefitted from a 26%-higher average price of $63.52/t for the 475 079 t of Uitkomst coal sold.

Disposed of for $12.9-million during the period was the Mooiplaats thermal coal colliery, which has been on care and maintenance since 2013.

Half of the $18.4-million three-year Industrial Development Corporation of South Africa Limited loan was available at year-end, along with a $1.5-million general banking facility secured from Rand Merchant Bank and a $1-million revolving asset finance facility from Absa Bank.

“It’s been a positive year for the company,” MC Mining CEO David Brown told Mining Weekly Online, who noted the company's transition into coal production as its first step to becoming a self-sufficient midtier, multi-product mining group.

He said that further progress had been made on the development of the Makhado hard coking coal project and that the sale of the noncore Mooiplaats Colliery would yield an estimated yearly operational cost saving of $1.4-million, with the aggregate sale proceeds of $12.9-million earmarked for Makhado, for which a lower-capital development plan had been drawn up.

Makhado, which has all of the requisite regulatory approvals to commence mining, is taking steps to secure access to two key properties for the completion of confirmatory geotechnical drilling.

Access has been delayed as the properties are subject to a legislated land claims process and the application for access will continue in parallel with the hard coking and thermal coal offtake negotiations which are at an advanced stage.

The company’s restructuring process has resulted in shareholder support not being required, with Uitkomst’s cash generating ability facilitating the normalisation of relations with commercial banks.