MC Mining slides deeper into the red
The struggling coal company impaired its investment in the Vele colliery, which is on care and maintenance
A sizable $87.5m impairment at MC Mining, formerly Coal of Africa, pushed the junior miner deeper into the red in the year to end-June. The successful integration of a cash-generating asset in the form of Uitkomst has, however, led to a healthier balance sheet and allowed for normalisation of the company's relationship with SA's commercial banks. This has further boosted its chances of proceeding with its flagship Makhado project, MC Mining CEO David Brown said on Thursday. The coal company impaired its investment in the Vele colliery, which is on care and maintenance. All in all, net nonrecurring, noncash charges were $91.8m for the review period.
Consequently, net loss widened to $101.6m, from $15.6m in the same period a year ago. MC Mining has only one operating mine, Uitkomst, which it bought from Pan African Resources late in 2017. Uitkomst sold 475,079 tonnes of coal, generating sales revenue of $32.7m. The company is also searching for a second cash-generating asset, re...
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