Our opinion on the current state of MC-MINING(MCZ)MC Mining (previously "Coal of Africa") (MCZ) is a small metallurgical coal-mining company with a single producing mine, Uitkomst.
Aside from Uitkomst, the company is developing the Makhado project, the Vele colliery, and MbeuYashu. The Makhado project is the company's flagship operation in the Limpopo province. It is an opencast mine with a life of 16 years and the potential to be extended. In January 2019, the company announced the acquisition of surface rights, which will make the Makhado project viable. Production was initially expected to commence at the end of 2020, and the mine was projected to produce 800,000 tons of hard coking coal and 1 million tons of export thermal coal. The Makhado purchase improves the risks substantially and makes this into a viable investment.
The IDC has provided R245m for the project, but a further R530m is still needed. The company owns 69% of Baobab Mining and Exploration, which owns the Makhado project.
On 8th April 2024, Business Day reported that Goldway Capital had received acceptances from shareholders amounting to 83.67% of the issued shares—more than the 82.15% required for the takeover to proceed. On 24th June 2024, the company announced that Godfrey Gomwe would resign with effect from 30th June 2024.
In its results for the six months to 31st December 2024, the company reported an after-tax loss of $8.4m—up 40% from the previous period—with revenue down 67%. Administrative expenses rose by 55%, and finance costs increased by 19%. The headline loss per share was 1.83c compared with 1.45c in the previous period.
The company said, "Cash and cash equivalents of $3.9 million compared to cash and cash equivalents of $0.2 million at 30 June 2024. Net asset value increased slightly to $75.6 million from $75.4 million in 30 June 2024."
This remains a volatile commodity share with only about R20,000 worth of shares changing hands on average each day, high debt levels, and all the risks of mining exploration and development.
