REG - MC Mining Limited - Trading Update
30/06/2023 12:15
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230630:nRSd5812Ea&default-theme=true
RNS Number : 5812E MC Mining Limited 30 June 2023
Announcement
30 June 2023
MAKHADO PROJECT - SIGNIFICANT INCREASES IN MINE LIFE AND COAL RESERVES
MC Mining Limited (MC Mining or the Company) is pleased to announce the
results of the updated Life of Mine (LOM) plan and Coal Reserve estimate for
its fully-licensed and shovel-ready Makhado steelmaking hard coking coal
project (Makhado Project, Makhado or the Project).
Highlights:
· the updated LOM plan(2) demonstrates a significantly increased mine
life (+27%), at a higher annual mine production rate (+25%) and results in
robust project financial returns, whilst using updated conservative cost,
macro-economic and coal price assumptions;
· Proved and Probable Coal Reserves estimates, reported in accordance
to JORC Code guidelines 1 (#_ftn1) , have substantially increased (+53%, from
69 to 106 million tonnes (Mt) 2 (#_ftn2) ) as a result of the detailed mine
designs completed for the East Pit deposit in preparation for mine start; and
· steady progress has been made with critical early works activities in
line with the Project's Implementation Plan 3 (#_ftn3) .
The LOM plan builds on the recently completed five-year Implementation Plan
that envisaged initially mining the East Pit. The plan incorporates the
exploitation of all portions of the East, Central and West coal deposits that
are mineable by surface mining methods. The Coal Reserve estimate is derived
from this updated LOM plan that applies updated costs, macro-economic and coal
price assumptions.
The updated LOM plan and Coal Reserve estimate are required to conclude
funding discussions that are part of the ongoing implementation of the Makhado
Project mine-build. The Project is 67.3%-owned by MCM through a local
subsidiary, Baobab Mining & Exploration Pty Ltd (BM&E). All figures
are reported for the full project in US$ and ZAR.
· The updated LOM plan is a significant improvement on the Scenario
2 plan completed in August 2022 to a pre-feasibility level of confidence
(Scenario 2) 4 (#_ftn4) , as is demonstrated by:
o improved production metrics:
§ a 25% increase in the targeted rate of mining from 3.2 to 4.0 million (M)
tonnes per annum (Mtpa) run-of-mine (ROM) coal; and
§ a 100% increase in coal handling and processing plant capacity, from 2.0 to
4.0 Mtpa; resulting in
§ a 30% increase in planned annual sales of 64 Mid Volatile (Vol) steelmaking
hard coking coal (HCC) to 0.81 Mtpa and a 15% increase in planned annual sales
of 5,500 kcal thermal coal (TC) to 0.62 Mtpa(( 5 (#_ftn5) ));
§ a 60% increase of total salable coal products from 26 to 41 million tonnes
(Mt) over the mine life;
§ a 27% increase in the LOM from 22 to 28 years; and
§ the time to first production increasing from 12 to 18 months due to the new
plant build whilst keeping the payback period materially unchanged at 3.5
years from the start of construction.
o using updated and conservative cost and macro-economic assumptions that
account for recent inflationary and market cost escalations in key production
inputs, these being:
§ a 6% increase in estimated fully-allocated costs (C3) to average US$83
(ZAR1,563) per tonne of saleable coal over the LOM;
§ an 11% increase in the estimated project peak funding requirements to US$96
M (ZAR1.8 billion (Bn));
§ a 22% increase in the forecast ZAR:US$ foreign currency exchange (Forex)
rate from ZAR15.47 to average ZAR18.83 6 (#_ftn6) over the LOM;
§ a marginally higher indexed premium HCC price forecast from US$212 to
US$215 per tonne sold on a free on board basis (FOB) 7 (#_ftn7) over the LOM,
sourced from independent advisors Afriforesight; and
§ a marginally higher indexed API4 thermal coal price (6,000 kcal) forecast
from US$106 to US$108 per tonne (FOB) 8 (#_ftn8) over the LOM.
o resulting in the following planned financial returns for the Project:
§ a 20% improvement in free cashflows to US$936 M (ZAR17.6 Bn);
§ a 17% increase in the post tax Net Present Value (NPV) from ZAR5.8 Bn
(real, post-tax, at a 6% discount rate) to ZAR6.8Bn (due to exchange rate
movements, a 4% reduction in US$ terms to US$361 M); and
§ an internal rate of return (IRR) (real, post-tax) of 37% and EBITDA margin
of 30%.
· Proved and Probable Coal Reserves estimates, reported in
accordance to JORC Code guidelines, have substantially increased compared to
the estimates reported previously 9 (#_ftn9) , to result in:
o a 53% increase in total Coal Reserves from 69 to 106 Mt due to the
revision in the East Pit optimisation and mine design;
o a 64% increase in salable steelmaking HCC from 13.7 to 22.5 Mt achieved at
an overall yield of 21.2%; and
o a 57% increase in salable TC from 11.9 to 18.7 Mt achieved at an overall
yield of 17.6%.
The Coal Resource estimate on which this Coal Reserve estimate is based
remains unchanged at 296 Mt of mineable tonnes in situ (MTIS) in the Measured
and Indicated categories as previously announced by the Company 10 (#_ftn10)
. The reported Coal Resource is inclusive of the Coal Reserve.
· Steady progress has been made with critical early works
activities in line with the Implementation Plan, to advance the Project
towards commencement of production, including:
o commencement with works relating to the power supply overhead transmission
line;
o construction of a bridge across the Mutamba river to provide access to the
project site;
o order placement for key long-lead items; and
o progressing with the selection of mine-operating contractors.
Chief Executive Officer, Mr. Godfrey Gomwe, commented:
"The Makhado Project continues to progress on schedule in preparation for
first coal production to no later than 18 months after construction starts. We
are pleased to see a substantial increase in our Coal Reserves and
consequently mine life at a much-improved annual production rate for saleable
coal products. This bodes well for moving operations down the cost curve
whilst aiming to take advantage of the near-term steelmaking HCC coal price
boons. We continue to focus on advancing early works activities whilst
funding activities are concluded in H2 CY2023, so that mine commissioning
meets scheduled production? timelines. We are also excited to have strong
contenders to be our partner mining contractors and partner coal beneficiation
plant operating contractors in the managed tender processes currently under
way and due for completion during the third quarter of 2023."
Key Project metrics are provided in the following tables.
Table 1: Key Production Parameters
Mining Production Rate - (Average) Mtpa 3.9
Total ROM Mined (over the mine life) Mt 106
Total Waste Mined (over the mine life) BCM ( million) 260
Stripping Ratio (Waste: ROM) BCM:tonnes 2.5
Steelmaking HCC Yield % 21.2
TC Yield % 17.6
Total Coal Sales - All Products Mt 41.2
Coal Sales 5,500 kcal TC - Export Mt 18.7
Coal Sales - Steelmaking HCC (Domestic and Export) Mt 22.5
Steelmaking HCC - Domestic Mt 11.2
Steelmaking HCC - Export Mt 11.3
Figure 1: ZAR:US$ foreign exchange rate forecast assumptions (real) as
provided by ABSA Bank as of June 2023.
Figure 2: Coal Prices forecast assumptions (real) as provided by Afriforesight
as of June 2023.
Table 2: Calculations Showing Adjustments from Indexed to Realised Coal Prices
(averages over the life of mine)
Indexed HCC Premium (source: Afriforesight June 2023 forecast) 215
Price Discount 11 (#_ftn11) -21
Realised 64 mid vol HCC Price (Export) 193
Sales Price adjustments -19
Realised 64 mid vol HCC Price (Domestic) 175
Indexed TC - 6,000 kcal (source: Afriforesight June 2023 forecast) 108
Price Discount -17
Sales Price adjustments 12 (#_ftn12) -61
Realised TC 5,500 kcal Price 29
Table 3: Capital Expenditure Estimate
Construction Capital + 10% Contingency 90.8 1,709
Extension Capital + 20% Contingency (From Year 14) 28.6 539
Sustaining Capital 12.7 240
Total LOM Capital (±15%) 132.1 2,488
Table 4: Operating Margins Parameters
Fully-allocated Cost Margin (C3 Margin) 27%
EBITDA Margin 30%
Table 5:Comparison of LOM Plan (June 2023) to Scenario 2 Plan (August 2022)
Production Metrics
Total ROM Mined (over the mine life) Mt 106 69 37
Total Waste Mined (over the mine life) BCM 260 146 114
Stripping Ratio (Waste: ROM) BCM:t 2.5 2.1 0.3
Coal Sales - 5,500 kcal TC - Export Mt 18.7 11.9 6.8
Coal Sales - steelmaking 64 Mid Vol HCC Mt 22.5 13.7 8.8
Construction period Months 18 12 6
Macro-economic Assumptions and Coal Prices
Long term ZAR:US$ exchange rate used(2) ZAR:US$ 18.8 15.5 3.4
Benchmark Prices (real, long term) Premium HCC price(3) US$/t 215 212 3
API4 (6,000 kcal) thermal coal price(4) US$/t 108 106 2
Realised Prices (real) 64 Mid Vol HCC (export) US$/t 193 177 16
64 Mid Vol HCC (domestic) US$/t 175 171 3
TC 5,500 kcal US$/t 29 61 -32
Cost Estimates
Fully-allocated Unit Costs (C3) US$/salable t 83 78 5
Construction Capital ZAR 'Bn 1.7 1.2 0.5
Financial Evaluation Outcomes
Peak Funding Requirements ZAR 'Bn 1.8 1.3 0.5
Free cashflow (post tax) ZAR 'Bn 17.6 12.1 5.5
Post-tax IRR % 37 41 -4
Post-tax NPV(6%) ZAR 'Bn 6.8 5.8 1
Post-tax NPV(10%) ZAR 'Bn 4.0 3.8 0.2
Average payback period (years) Years 3.5 3.5 0
The NPV is most sensitive to variances in the USD:ZAR Forex rate, HCC price
and HCC yields. The NPV increases by 45%, 35% and 25%, respectively, when the
USD:ZAR Forex rate, HCC price and HCC yields are each increased by 10%.
Conversely, the NPV is less sensitive to changes in mining operating costs and
product trucking costs. The NPV decreases by 12% and 9% when mining costs
and product trucking costs are increased by 10% respectively.
The break-even indexed premium HCC and API4 TC (6,000 kcal) prices, where the
NPV is zero, were calculated to be US$171/t and US$86/t, respectively at the
production ratios presented in the LOM Plan.
The LOM Plan is an improvement, in many aspects, on the project development
scenario selected in August 2022 (Scenario 2) as the preferred plan to be
taken forward. Whilst the Scenario 2 plan was compiled at a pre-feasibility
level of confidence (±30%), the LOM plan has been prepared with capital cost
estimates within a ±10% accuracy level for the first five years of the
project and thereafter within ± 30%. The capex for the first five years,
exluding any sustaining capex, is ZAR1.7Bn to construct the Makhado Project
(±10% accuracy) while LOM plan includes a further ZAR0.5Bn (±30%
accuracy) to develop the Central and West pits. The reference date for the
cost estimates is April 2023.
CRITICAL EARLY WORKS IMPLEMENTATION PROGRESS
The Company continues with critical early works being:
· commencement with detailed design, procurement and construction of
the power supply overhead transmission line, with construction team now
mobilised onsite - a critical path activity;
· refurbishment of onsite accommodation to house project construction
crews;
· placement of orders for key long-lead time items;
· progress with the managed tender processes for selecting contractors
to partner as the lead mining and coal beneficiation plant operating
contractors;
· mobilisation of construction contractors for the construction of the
main access road, main bridge and civil works for bulk water reticulation; and
· progress with erection of fencing to secure the project site.
SUMMARY OF COAL RESERVES ESTIMATE
Coal Reserves Estimate Update
MCM's equity share in Makhado is 67.3%. A summary of the Gross net Coal
Reserve estimate is shown in Table 65.
Table 6: Makhado Project Coal Reserves Estimate as at 28 June 2023 (Gross)
East Pit Proved 49 695 22.3% 11 101 17.6% 8 743
Probable 4 878 23.2% 1 129 17.3% 843
Total 54 573 22.4% 12 230 17.6% 9 586
Central Pit Proved 21 947 21.3% 4 685 17.1% 3 747
Probable 1 158 24.7% 286 16.9% 196
Total 23 105 21.5% 4 971 17.1% 3 944
West Pit Proved 26 114 18.7% 4 885 18.3% 4 791
Probable 2 462 17.5% 431 15.3% 376
Total 28 576 18.6% 5 317 18.1% 5 167
Combined Proved 97 756 21.1% 20 672 17.7% 17 281
Probable 8 498 21.7% 1 846 16.7% 1 415
Total 106 254 21.2% 22 518 17.6% 18 697
Gross Coal Reserve Estimate (Proved and Probable) as at 28 june 2023
Notes
1. GTIS based on a 1.4 washability
2. MTIS excludes the Fripps Farm and is limited to the 200
m depth cut-off.
3. MTIS includes geological losses of 5% on Measured, 8%
on Indicated and 10% on Inferred Coal Resources.
4. Quality parameters applied to GTIS to obtain MTIS.
5. Minimum coal seam thickness of 0.5 m applied.
6. HCC Ash content ≤ 10%, TC Ash content ≤ 25.9% and
Volatile material > 20%.
7. The Coal Reserve estimation includes diluted Measured
and Indicated Coal Resources only.
8. No Inferred Coal Resources have been included in the
Coal Reserve estimation.
9. The Coal Reserve estimate was completed using a
realised coal price of US$193t for 64 Mid Vol HCC (export) and US$29/t for TC
5,000 kcal after product quality discounts and offtake-related deductions
were applied.
Key Assumptions and JORC Code Requirements
Coal Resources are reported inclusive of Coal Reserves.
The coal price assumptions used to estimate Coal Reserves were indexed values
of US$215/t for steelmaking premium HCC and US$108/t for API4 Thermal Coal
(6,000 kcal), on a real basis. The corresponding realised coal prices for
two salable products after making quality and sales price adjustments were
US$193/t for the 64 Mid Vol HCC for export and US$29/t for the TC 5,500 kcal
at an assumed ZAR:US$ Forex rate of ZAR18.83. The long-term indexed coal price
forecasts were sourced from Afriforesight and the Forex rate assumptions were
sourced from ABSA Bank Ltd as of June 2023.
The Coal Resources and Coal Reserves have been classified in accordance with
the guidelines set out in the Australasian Code for Reporting Exploration
Results, Mineral Resources and Ore Reserves, published by the Joint Ore
Reserves Committee (JORC), of the Australasian Institute of Mining and
Metallurgy, the Australian Institute of Geoscientists and the Minerals Council
of Australia, December 2012 (the JORC Code or JORC 2012).
Material Information for the Makhado Project coal deposit, including a summary
of material information pursuant to ASX Listing Rule 5.9 and the Assessment
and Reporting Criteria in accordance with JORC 2012 requirements in the body
of this anouncement, may be found on the Company's website:
https://protect-za.mimecast.com/s/s9V-Cg5yVQI3GEmTNJvpn?domain=mcmining.co.za
The conversion from mineable tonnes in situ Coal Resource (MTIS) to Coal
Reserves is illustrated in the waterfall chart in Figure 3.
Figure 3: Coal Resource to Coal Reserve Conversion Waterfall Chart
Coal Resources and Coal Reserves Governance Statement
In accordance with ASX Listing Rule 5.21.5, governance of the Company's Coal
Resources and Coal Reserves development and management activities are through
the management and owner's team for MCM.
Senior geological and mining engineering staff contracted by MCM oversee
reviews and technical evaluations of the estimates and evaluate these with
reference to industry standards and empirical estimates for physical, cost and
performance measures. The evaluation process also draws upon internal skill
sets in operational and project management, coal processing and
commercial/financial areas of the business.
The MCM Safety, Health, Environment and Technical Committee (SHETech
Committee) is responsible for monitoring the planning, prioritisation and
progress of the estimation and reporting of Coal Resources. These definition
activities are conducted within a framework of quality assurance and quality
control protocols covering aspects including drill hole siting, sample
collection, sample preparation and analysis as well as sample and data
security. The SHETech Committee is responsible for the reporting of Coal
Reserves.
A four-level compliance process guides the control and assurance activities by
the SHETech Committee, being:
• provision of Company policies, standards, procedures and
guidelines;
• Coal Resources and Coal Reserves reporting based on
well-founded geological and mining assumptions and compliance with external
standards such as the JORC Code;
• internal and third-party reviews of process conformance and
compliance; and
• internal and third-party assessment of compliance and data
veracity.
The Company reports its Coal Resources and Coal Reserves, as a minimum, on an
annual basis and in accordance with ASX Listing Rule 5.21 and clause 14 of
Appendix 5A (the JORC Code). Competent Persons named by the Company are
either members of the South African Institute of Mining and Metallurgy or the
South African Council for Natural Scientific Professions, which are
'Recognised Professional Organisations' (RPOs), included in a list promulgated
by the ASX from time to time, hence qualify as Competent Persons as defined in
the JORC Code.
Summary of Material Information
The updated Coal Reserve estimate reported in Table 6 is based on the Coal
Resource estimate as reported by the Company as of 28 June 2022 with modifying
factors applied. The modifying factors and associated criteria used in
determining the Coal Reserve are summarised below, in accordance with ASX
Listing Rule 5.9.1.
Table 7: Modifying Factors for Coal Reserves Calculations
Minimum Mineable Coal Seam Thickness m 0.5
Geological Losses (Measured & Indicated) % 5 & 8
Mining Loss Factor % 5
Minimum Product Volatiles % 20
Mining Contamination % 5
Practical Yield % 95
Comparison of Coal Reserves Estimates
Tables 6 to 9 compare the 2022 Coal Reserves estimate with the updated Coal
Reserve estimate as at 28 June 2023. Changes in the Coal Reserves are due to
the revision of pit optimisations and detailed mine designs of the East Pit.
MCM's equity share is 67.3% of the Coal Reserves estimate shown below. Coal
Reserves are included in the Coal Resource estimate.
Table 8: Makhado Project Coal Reserves Changes from Previous Estimate - East
Pit (gross)
30-Jun-22 Proved 14 739 19.1% 2 814 16.1% 2 369
Probable 2 925 21.0% 614 15.3% 448
Total 17 663 19.4% 3 428 15.9% 2 816
Changes Proved 34 956 3.2% 8 287 1.5% 6 375
Probable 1 954 2.1% 515 2.0% 395
Total 36 910 3.0% 8 802 1.6% 6 770
28-Jun-23 Proved 49 695 22.3% 11 101 17.6% 8 743
Probable 4 878 23.2% 1 129 17.3% 843
Total 54 573 22.4% 12 230 17.6% 9 586
Table 9: Makhado Project Coal Reserves Changes from Previous Estimate -
Central Pit (gross)
30-Jun-22 Proved 21 947 21.3% 4 685 17.1% 3 747
Probable 1 158 24.7% 286 16.9% 196
Total 23 105 21.5% 4 971 17.1% 3 944
Changes Proved - 0.0% - 0.0% -
Probable - 0.0% - 0.0% -
Total - 0.0% - 0.0% -
28-Jun-23 Proved 21 947 21.3% 4 685 17.1% 3 747
Probable 1 158 24.7% 286 16.9% 196
Total 23 105 21.5% 4 971 17.1% 3 944
Table 10: Makhado Project Coal Reserves Changes from Previous Estimate - West
Pit (gross)
30-Jun-22 Proved 26 114 18.7% 4 885 18.3% 4 791
Probable 2 462 17.5% 431 15.3% 376
Total 28 576 18.6% 5 317 18.1% 5 167
Changes Proved - 0.0% - 0.0% -
Probable - 0.0% - 0.0% -
Total - 0.0% - 0.0% -
28-Jun-23 Proved 26 114 18.7% 4 885 18.3% 4 791
Probable 2 462 17.5% 431 15.3% 376
Total 28 576 18.6% 5 317 18.1% 5 167
Table 11: Makhado Project Coal Reserves Changes from Previous Estimate - East,
Central and West Pits combined (gross)
30-Jun-22 Proved 62 800 19.7% 12 384 17.4% 10 907
Probable 6 545 20.3% 1 331 15.6% 1 020
Total 69 345 19.8% 13 716 17.2% 11 927
Changes Proved 34 956 1.4% 8 287 0.3% 6 375
Probable 1 954 1.4% 515 1.1% 395
Total 36 910 1.4% 8 802 0.4% 6 770
28-Jun-23 Proved 97 756 21.1% 20 672 17.7% 17 281
Probable 8 498 21.7% 1 846 16.7% 1 415
Total 106 254 21.2% 22 518 17.6% 18 697
Notes:
Gross
Coal Reserve Estimate (Proved and Probable) as at 28 June 2023
1. GTIS based on a 1.4 washability.
2. MTIS excludes the Fripps Farm and is limited to the 200
m depth cut-off.
3. MTIS includes geological losses of 5% on Measured, 8%
on Indicated and 10% on Inferred Coal Resources.
4. Quality parameters applied to GTIS to obtain MTIS.
5. Minimum coal seam thickness of 0.5 m applied.
6. HCC Ash content ≤ 10%, TC Ash content ≤ 25.9% and
Volatile material > 20%.
7. The Coal Reserve estimation includes diluted Measured
and Indicated Coal Resources only.
8. No Inferred Coal Resources have been included in the
Coal Reserve estimation.
9. The Coal Reserve estimate was completed using a
realised coal price of US$193t for HCC (export) and US$29/t for TC after
product quality discounts and offtake-related deductions.
COMPETENT PERSONS STATEMENTS
Coal Resources Estimate
The information in this report that relates to Coal Resources has been
compiled by technical consultants and employees of MCM under the supervision
of Mr John Sparrow B.Sc. (Hons), M.Sc. (Econ. Geol), SAIMM. Mr Sparrow is a
full-time employee of MCM and has sufficient experience which is relevant to
the style of mineralisation and types of deposit under consideration and to
the activities which he is undertaking to qualify as a Competent Person as
defined in the 2012 Edition of the "Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves". Mr Sparrow consents
to the inclusion in this report of the matters based on his information in the
form and context in which it appears.
Coal Reserves Estimate
The information in this report that relates to Coal Reserves has been compiled
by technical consultants and employees of MCM under the supervision of Mr Ben
Bruwer, B Engineering (Mining Engineering), SAIMM. Mr. Bruwer is a principal
mining consultant at ABCONN Engineering Pty Ltd. Mr Bruwer has sufficient
experience which is relevant to the style of mineralisation and types of
deposit under consideration and to the activities which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves". Mr Bruwer consents to the inclusion in this report of the
matters based on his information in the form and context in which it appears.
WAY FORWARD
The Company anticipates that the funding arrangements will be concluded in H2
CY2023. The tender adjudication for major contractors, notably the mining
contractor and CHPP operator, is expected to be completed in early Q3 CY2023,
followed by the final investment decision, ensuring that the Makhado Project
execution processes are broadened from early works to include full scale
implementation. First coal production remains expected no later than 18 months
from construction start-date.
Godfrey Gomwe
Managing Director and Chief Executive Officer
This announcement has been approved by the Company's Disclosure Committee.
All figures are in South African rand or United States dollars unless
otherwise stated.
For more information contact:
Tony Bevan Company Secretary Endeavour Corporate Services +61 8 9316 9100
Company advisors:
James Harris / James Dance Nominated Adviser Strand Hanson Limited +44 20 7409 3494
Rory Scott Broker (AIM) Tennyson Securities +44 20 7186 9031
Marion Brower Financial PR (South Africa) R&A Strategic Communications +27 11 880 3924
BSM Sponsors Proprietary Limited is the nominated JSE Sponsor
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018, as amended.
About MC Mining Limited:
MC Mining is an AIM/ASX/JSE-listed coal exploration, development and mining
company operating in South Africa. MC Mining's key projects include the
Uitkomst Colliery (metallurgical and thermal coal), Makhado Project (hard
coking coal), Vele Colliery (semi-soft coking and thermal coal), and the
Greater Soutpansberg Projects (coking and thermal coal).
All figures are denominated in United States dollars unless otherwise stated.
Safety metrics are compared to the preceding quarter while financial and
operational metrics are measured against the comparable period in the previous
financial year. A copy of this report is available on the Company's website,
www.mcmining.co.za (http://www.mcmining.co.za) .
Glossary
Term Definition
MCM/ the Company MC Mining LImited
BM&E Baobab Mining & Exploration (Pty) Ltd
Mtpa Million tonnes per annum
HCC hard coking coal
TC Thermal coal
Mt Million tonnes
Bn Billion
FOB Free on board
Forex Foreign exchange rate
NPV Net present value
IRR Internal rate of return
m Million
GTIS Gross tonnes in situ
MTIS mineable tonnes in situ
JORC Australasian Code of Reporting of Exploration Results, Mineral Resources and
Ore Reserves, 2012 Edition
SHETech Committee Safety, Health, Enmvitonment & Technical Committee
SAIMM South African Institute of Mining and Metallurgy
Forward-looking statements
This Announcement, including information included or incorporated by reference
in this Announcement, may contain "forward-looking statements" concerning MC
Mining that are subject to risks and uncertainties. Generally, the words
"will", "may", "should", "continue", "believes", "expects", "intends",
"anticipates" or similar expressions identify forward-looking statements.
These forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from those expressed in the
forward-looking statements. Many of these risks and uncertainties relate to
factors that are beyond MC Mining's ability to control or estimate precisely,
such as future market conditions, changes in regulatory environment and the
behaviour of other market participants. MC Mining cannot give any assurance
that such forward-looking statements will prove to have been correct. The
reader is cautioned not to place undue reliance on these forward-looking
statements. MC Mining assumes no obligation and does not undertake any
obligation to update or revise publicly any of the forward-looking statements
set out herein, whether as a result of new information, future events or
otherwise, except to the extent legally required.
Statements of intention
Statements of intention are statements of current intentions only, which may
change as new information becomes available or circumstances change.
1 (#_ftnref1) In accordance with ASX Listing Rule 5.21 and Appendix 5A (the
JORC Code) under the supervision of a Competent Person.
2 (#_ftnref2) Conpared to the 30 August 2022 announcement, Coal Reserves
increased 53%, saleable steelmaking HCC increased 64% and saleable TC
increased by 57%.
3 (#_ftnref3) Refer to Company announcement of 26 April 2023 Makhado Project
Update.
4 (#_ftnref4) Refer to Company announcement 30 August 2022 Makhado, Vele and
GSP Updates (Alternative Development Scenarios).
5 (#_ftnref5) Note that the average annual production for the first five
years of operations is higher at 0.88 Mtpa of HCC and 0.73 Mtpa of TC as a
result of prioritising the mining of higher yielding coal zones.
6 (#_ftnref6) ABSA Bank foreign exchange rate consensus long term forecasts
as from June 2023.
7 (#_ftnref7) Afriforesight coal price consensus long-term forecasts as from
June 2023.
8 (#_ftnref8) Ibid.
9 (#_ftnref9) Makhado Coal Reserves as stated in the Company's 30 June 2022
Resources & Reserves Statement, reported in accordance to JORC Code
reporting guidelines.
10 (#_ftnref10) Makhado Coal Resources as stated in the Company's 30 June
2022 Resources & Reserves Statement, reported in accordance to JORC Code
reporting guidelines, Annual report 22 September 2022.
11 (#_ftnref11) HCC64 index trades at an average 10% discount to the premium
HCC price.
12 (#_ftnref12) Sales price adjustments include transport and port logistics
charges.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END TSTURRAROWUNOARRecent news on MC Mining
See all newsREG - AIM MC Mining Limited - Cancellation - MC Mining Limited
AnnouncementREG - AIM - AIM Notice - 28/05/2024
AnnouncementREG - MC Mining Limited - Goldway's Buy-Out Offer
AnnouncementREG - Goldway Capital Inv MC Mining Limited - Change in substantial holding
AnnouncementREG - Goldway Capital Inv MC Mining Limited - Goldway - Commencement of compulsory buy-out
Announcement