MC Mining reports lower interim revenue, but a narrowed net loss
ASX- and JSE-listed MC Mining has reported, in its interim financial report for the six months ended December 31, 2025, that its net loss after tax narrowed by 2% year-on-year to $8.1-million, or $0.01 a share.
The company reports that revenue declined by 22% year-on-year to $6.6-million, primarily owing to lower sales volumes at Uitkomst, in KwaZulu-Natal, and weaker thermal coal pricing.
The company’s cost of sales decreased by 12% to $11.1-million, resulting in a gross loss of $4.5-million.
Administrative expenses increased by 3% to $4.5-million, while finance costs decreased by 55% to $400 000.
The company ended the six-month period with cash and cash equivalents of $2.9-million, compared with $7.4-million as at June 30, 2025.
Its net asset value increased by 23% to $101.9-million, from $83.2-million as at June 30, 2025.
OPERATIONS
MC Mining reports that the Uitkomst Colliery produced 140 121 t of run-of-mine (RoM) coal during the six months to December 31, 2025 - 24% lower year-on-year.
The company notes that 1 057 t of high-quality coal was stockpiled at Uitkomst at the end of December 2025, and that Uitkomst sold 87 447 t of coal, comprising 87 447 t of premium duff and sized peas and no middlings sales, in the six months under review.
The Uitkomst net revenue per tonne increased to $75/t, primarily owing to a change in product mix and market pricing, despite lower production volumes driven by geological challenges.
The company adds that lower coal production volumes contributed to the 20% increase in production costs per saleable tonne.
Further, MC Mining reports that its flagship Makhado project, in Limpopo, remains on track for hot commissioning of the coal handling and preparation plant (CHPP) in April, representing a key milestone in transitioning MC Mining into a primary South African producer of premium hard coking coal.
MC Mining notes that a permanent access bridge across the Mutamba river has been commissioned and that significant progress was made on the 14 km, 22 kV overhead power line, including delivery of transformers to site.
Additionally, MC Mining notes that operations at the company’s Vele Aluwani semi-soft coking coal and thermal coal colliery remain suspended pending the conclusion of a reengineered business plan.
The company says remaining finished product stockpiles were disposed of at a nominal value during the period.
Work also continued on the Greater Soutpansberg projects.
Activities included prioritising tenements for future development and preparing for environmental and water licence applications expected to progress during the first half of the current calendar year.
SUBSEQUENT EVENTS
Additionally, MC Mining notes that, on February 2, the board approved the temporary suspension (hibernation) of mining and processing operations at Uitkomst Colliery, with an intended effective date of March 1, subject to completion of the required statutory, labour and regulatory processes.
The company explains that the suspension aims to stem ongoing cash losses and preserve optionality for restart.
