MC Mining production falls by two thirds due to Covid-19 lockdown
Coal production fell 66% in the junior miner’s quarter to end-June, but pre-lockdown levels of production have since resumed
Junior coal miner MC Mining said on Friday that production fell by two thirds due to Covid-19 restrictions in its quarter to end-June, but pre-lockdown levels of production have since resumed.
The group’s Uitkomst colliery generated 41,536 tonnes during the quarter, a 66% fall from the same period in 2019, while prices also fell.
The Covid-19 pandemic resulted in a significant decline in export thermal coal prices, falling from $79 a tonne in the preceding three months to $55 for the quarter to end June.
This is 16% lower than the comparative quarter of 2019, the group said.
MC Mining relies on Uitkomst for cash generation, but its priority is its flagship Makhado project, which will produce coking coal and thermal coal once production begins.
The lockdown measures were eased progressively during the quarter, allowing Uitkomst to return to steady-state production by the end of June with orders returning to pre-pandemic levels in July, said acting CEO Brenda Berlin.
In morning trade on Friday, MC Mining’s share was up 0.88% to R1.15, giving it a market capitalisation of R162m. Its share has fallen 82% so far in 2020.
Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.