MC Mining Limited MARKET UPDATE (2021N)
May 18 2020 - 5:33AM
UK Regulatory
TIDMMCM
RNS Number : 2021N
MC Mining Limited
18 May 2020
ANNOUNCEMENT
18 May 2020
MARKET UPDATE
MC Mining Limited ("MC Mining" or the "Company") is pleased to
provide an update with regards to the impact on the Company of the
global COVID-19 pandemic. MC Mining remains focused on taking the
necessary precautions to prevent the spread COVID-19 and reducing
the threat to our employees, contractors and stakeholders.
Operations at the Uitkomst Colliery
The South African Government directive dated 23 April 2020
provided for a phased, risk-based approach to reducing restrictions
from level 5 to level 4 from 1 May 2020 (refer Company announcement
dated 5 May 2020).
The Level 4 restrictions allowed the Company to restart
operations at its h igh-grade Uitkomst metallurgical and thermal
coal mine ("Uitkomst Colliery" or "Uitkomst") on 4 May 2020,
subject to the following limitations:
1. Utilisation of 50% of that mine's labour capacity;
2. Adherence to detailed health and safety protocols; and
3. Introduction of workplace plans to enable disease
surveillance at site and prevent the spread of infection.
The Company is pleased to report the Uitkomst Colliery has
successfully ramped-up production to the stipulated 50% labour
capacity level since recommencing operations.
The Company is also pleased to report strong customer demand for
its products.
Effects of the Level 4 restrictions on MC Mining's other
sites
Activities at the Company's Makhado, Vele and Greater
Soutpansberg Projects will remain closed until the South African
government eases restrictions further. The 'no work, no pay' policy
for non-essential staff remains in place, although a portion of
wages continues to be paid to affected staff by the Government's
Temporary Employee/Employer Relief Scheme. Where practical, the
work-from-home policy will remain in place for essential staff
until there is a further easing of lockdown restrictions.
Loan facilities
The Company is in continuing negotiations with MC Mining Group
financiers, including the Industrial Development Corporation of
South Africa Limited, regarding drawdown from existing facilities,
potential new finance facilities (refer Company announcement dated
5 May 2020) and deferment of repayment dates. The Company's request
for deferment of principal repayments is to bring such repayments
in line with the revised cash flow forecasts brought about by the
Covid-19 restrictions . Discussions to date have been positive and
while still not finalised, the Company expects a favourable outcome
and will provide a further update once negotiations have been
concluded.
Comment
Company CEO, Brenda Berlin: "I am very pleased with the smooth
ramp-up to the 50% labour capacity level at the Uitkomst colliery
and the continuing strong demand for its products from existing
customers. I also acknowledge the continued support of our existing
financiers and am looking forward to finalising negotiations in the
short term"
Brenda Berlin
Chief Executive Officer
This announcement has been approved by the Company's Disclosure
Committee.
For more information contact:
Brenda Berlin Chief Executive Officer MC Mining Limited +27 10 003 8000
Tony Bevan Company Secretary Endeavour Corporate Services +61 08 9316 9100
Company advisors:
Ross Allister/David McKeown Nominated Adviser and Broker Peel Hunt LLP +44 20 7418 8900
James Duncan Financial PR (South Africa) R&A Strategic Communications +27 11 880 3924
Investec Bank Limited is the nominated JSE Sponsor
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 coal),
Makhado Project (hard coking coal). Vele Colliery (semi-soft coking
and thermal coal), and the Greater Soutpansberg Projects (coking
and thermal coal).
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.
MC Mining has ensured that the mineral resources quoted are
subject to good governance arrangements and internal control. The
Company has engaged external independent consultants to update the
mineral resource in accordance with the JORC Code 2012 and SAMREC
2016. The units of measure in this report are metric, with Tonnes
(t) = 1,000kg. Technical information that requires subsequent
calculations to derive subtotals, totals and weighted averages may
involve a degree of rounding and consequently introduce an error.
Where such errors occur MC Mining does not consider them to be
material.
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 or visit www.rns.com.
END
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