South African coal miner MC Mining has narrowed its net loss to $11.8-million for the financial year ended June 30, from the net loss of $12.2-million recorded for the prior financial year.
Contributing to the loss of $11.8-million were non-cash charges of $9.6-million, compared with non-cash charges of $4.3-million incurred in the prior financial year.
Meanwhile, revenue improved to $20.7-million, compared with $17.2-million in the 2020 financial year, while cost of sales increased to $20.3-million, compared with $18.3-million in the prior year.
That resulted in a gross profit of $400 000 for the year under review, compared with a gross loss of $1.1-million the year before.
Operating cash flows of $1.7-million were generated by the Uitkomst metallurgical and thermal colliery.
The colliery's run-of-mine coal production increased by 14% year-on-year to 490 100 t, while coal sales increased to 292 261 t, from 254 193 t the year before.
The Vele semi-soft coking and thermal coal colliery remained on care and maintenance and the carrying value of the colliery was assessed during the year under review, resulting in an impairment of $6.5-million.
JSE-, ASX- and Aim-listed MC Mining continued to work on composite debt/equity funding initiatives for the Makhado hard coking coal project, with a number of parties undertaking due diligence.
"MC Mining remains confident that the parties taking part in the process will commit the necessary funds to complete the Makhado Phase 1 funding.
"The development of the Makhado project will result in MC Mining being the pre-eminent South African producer of hard coking coal, a key ingredient contributing to the manufacture of steel and a commodity that trades at a significant premium to thermal coal," the coal miner states.