MC MINING’s share price plunged nearly 21 percent yesterday to R1.10 despite the South Africa-focused coal mining firm saying it had narrowed its interim loss, boosted by higher coal prices.
For the half-year ended December 31, 2021 its headline loss per share decreased by 72 percent to 0.54 cents per share.
It said the higher global demand for coal post the Covid-19 pandemic had resulted in a significant increase in international prices with an average API4 coal price of $151 (R2 271) per ton for the period from $64 a ton the prior corresponding period.
Its revenue increased by 48 percent to $13 million from $8.8m in the prior corresponding period, while its operating loss before interest decreased by 75 percent to $0.6m.
Loss per share from continuing operations and discontinued operations decreased by 70 percent to 0.54 cents per share, from 1.80 cents per share in the prior corresponding period.
Net asset value decreased by 10 percent to $96.2m.
No dividend was declared.
The company said it continued to progress a number of debt/equity funding initiatives to raise the additional funding required to develop the Makhado hard coking coal project
The Industrial Development Corporation (IDC) had provided long-standing commitment to the development of Makhado and had provided a loan of $10m.
During the reporting period, the IDC had extended the date for repayment to November 30.
philippa.larkin@inl.co.za
BUSINESS REPORT ONLINE