Mc Mining Share Discussion Threads

[2bozmo] 24/6/2019 07:43

Mirabaud Securitues have started overage, BUY with 90p price target

[2bozmo] 19/6/2019 06:53

HCC off-take completed. ArcelorMittal. On time.

[newtothisgame3] 22/4/2019 14:53

#MC #Mining #Limited (LON:#MCM) climbed 6.6% to 48.5p over the week after clinching a sale and purchase agreement for its Makhado hard coking and thermal coal project in South Africa.

[2bozmo] 16/4/2019 09:01

Not sure why unclear? API4 published daily. Unclear who buying. Vitol?Project financing is regular project finance. Very vanilla. Project going ahead.Currently HCC $202 against $165 in assumptions for project

[ianio5691] 16/4/2019 07:54

RNS
Offtake agreement signed for Phase 1.
Lot of details unclear...

"-- sales prices shall be an API4 linked price expressed in US Dollars and will be calculated and agreed on a quarterly basis; and

-- saleable thermal coal will be delivered to the Musina siding and sold on a free-on-rail (FOR) basis, which takes into account the actual rail and port charges.

The Agreement is subject to various conditions precedent standard for an agreement of this nature."


Elephant in the room still funding...

"Negotiations for a composite debt and equity funding arrangement continue and we anticipate that they will be completed in Q3 CY2019...."


Getting interesting, but until funding sorted, still a bit of a punt.

[casual47] 14/3/2019 12:09

If equity is at good premium -- could be

If equity is at a discount -- expect to be sub 100 for a good wee while longer....

[bengal1] 14/3/2019 12:06

Good overall progress though... Yes??

[2bozmo] 14/3/2019 11:47

Yes and No. package include repaying that debt and overall split 50/50 btw equity/debt

[bengal1] 14/3/2019 11:28

Yes.. A bit surprising.

[casual47] 14/3/2019 11:24

Using equity to repay a loan means they failed to get refinancing. A sign of weakness.

[casual47] 14/3/2019 11:16

A lesson in patience.

[2bozmo] 14/3/2019 11:10

I hadn't realised we would have to repay IDC loan so soon. Just listened to conference call, all looks very positive, and sounds like positive news flow in next few months. Good to see we're using Vele as integral part of phase 1. Definitely becomes more attractive for SEZ.Also Uitkomst results aren't as bad as I had imagined given all the issues there. Positive going forward

[bengal1] 14/3/2019 10:36

Need to raise almost two thirds market cap.. Debt and equity... Not brilliant but how else do they do this??? Oh dear.

[channel pirate] 14/3/2019 09:07

Well todays "Results" looks like there is no hurry for me to add any more just yet, and to add a few more maybe after 05th April when I can put them in a new tax free ISA.

[channel pirate] 13/3/2019 15:41

Share price drops to 45p/48p the day before the Results, so wonder what we have in store tomorrow morning !! Just 13 days ago we were 52p/57p, and January 17th this year we had a share price of 67.5p, so a drop of just over 31% in less than 2 months !!

[mjcferguson] 01/3/2019 08:58

Minimise early dilution and achieve production as early as possible in order to establish viability seems a sensible way forward.We have all waited a long time for this to get going and it would be very damaging to long patient shareholders to see enormous dilution at very low price just before credibility appears.

[2bozmo] 01/3/2019 06:12

Someone put this on another board after conversation with company. Thu 09:49 Price: 53.50Hedger1234 16 postsRE: ArticleHad a convo with co following seeing this re: phased approach. They are very bullish and very busy. Lots to do before construction starts but aiming to begin construction in July; all off take to be completed by end March. As far as I can gather:1. Quicker cash flows as phase 1 construction period is 9 months and in production almost immediately thereafter 2. Smaller capex and equity requirements for phase 1 and hence less dilution. 3. Produce 900k year split equally between thermal coal and coking coal. Chinese to take all production in the phase 1. Mittal involved in phases 2 when production increases by 2m tonnes.4.The phased approach gives us a much smaller initial raise which results in less dilution, and exposes us to a positive rerate earlier and allows us to get runs on the board before embarking on a much bigger projectThe actual give lines in the article are incorrect. We should start construction in July, with 9-month construction and 3-month ramp up. So around Sep 2020 we should be at full production.I expect some details to be given mid-March with results release but with technical work going on might be a little later.Any thoughts on above? On the one hand can see market loving it, project definitely going ahead, coal coming to market much sooner than expected. Downside in having phased approach is larger sales follow later and npv of project reduced. However, it will give us opportunity to grow as a small cap and avoid dilution. Thoughts welcome

[2bozmo] 28/2/2019 09:57

https://m.fin24.com/Finweek/Business-and-economy/man-on-a-mission-20190228

[2bozmo] 08/2/2019 14:28

Board meeting in March. Quicker and more significant than I had anticipated with acquisition of land. Sit tight.

[casual47] 08/2/2019 12:56

Given the enthusiasm a few months ago and shareprice today I suppose we should once again conclude that for this share (and in general in south africa) things don't happen quite as quickly as you might think.

Best not to get too excited.

[mawc] 04/2/2019 15:42

A writeup in the Evening Standard today. Long time since there has been any positive press on this company! Maybe things starting to happen finally. MC Mining's turnaround story looks to be justified. Investors should be sceptical of chief executives selling a company turnaround story - more often than not they are a lame excuse for sustained underperformance. But in Mc Mining Limited (MCM) case the T-word might be justified. The miner was going through a torrid time just a few years ago, short on cash and owing money to the banks and Rio Tinto. The company now has breathing space to focus on its major project, a large coking and thermal coal development called Makhado Lite in Soutpansberg in northern South Africa, which has secured all necessary permits to begin digging. If financing discussions are completed, then it is expected the company could break ground in the final quarter this year, with full capacity being hit by the end of next year. It has a coal purchase agreement with China's Huadong Coal Trading Center for the hard coking coal it plans to produce at Makhado. Under the deal Huadong Coal Trading Center will buy 400,000 tonnes of coking coal per year. It still needs to find a buyer for the other 400,000 tonnes as the project is expected to produce 800,000 tonnes in total. Chief executive David Brown believes he can sell the rest domestically. "South Africa currently has no significant hard coking coal which results in producers having to import the commodity. Makhado's coking coal can replace some of these imports," he said. Peel Hunt has a Buy rating and a target price of 75p on the stock.

[ianio5691] 25/1/2019 11:13

Currently trading
down 6.5% on JSE at 1150.00 ZAC (64p)
and
up 2.5% on ASX at 1.22AUD (66p)

Seems we are lagging behind both exchanges...

[ianio5691] 25/1/2019 08:44

RNS Quarterly update.

Figures from uitkomst a bit disappointing, but the transformational key here is getting Makhado up and running.

Pertinent points for me....

"South Africa produces significant quantities of thermal coal but has a very limited domestic supply of high-quality metallurgical coal, resulting in coke producers having to import HCC for the manufacture of metallurgical coke, a key ingredient for steel production. HCC typically attracts a significantly higher sales price compared to thermal coal and MC Mining anticipates that once developed, the Makhado Project will be the only significant HCC mine in South Africa.

Negotiations for off-take have been ongoing and resulted in the signature of a three-year off-take agreement with HDCTC during the Quarter. HDCTC is a Chinese state-owned enterprise and a subsidiary of the China Forestry Group Corporation, the owner of substantial logistics infrastructure including 780,000t of berth-space in China. HDCTC has logistics and bulk commodity trading interests and traded in excess of five million tonnes of iron ore and coal during the past two years.

The off-take agreement confirms the quality and marketability of the HCC and will result in Makhado supplying up to 450,000t of HCC to HDCTC annually. In terms of the agreement, HCC will be sold at prices linked to a published index price. Discussions with other potential HCC and export thermal coal customers as well as project funders are ongoing."


and David Browns comment....

"The signing of the HCC off-take Agreement with HDCTC reaffirms Makhado's world-class coal qualities and reflects the international appetite for this type of coking coal. Export sales stand to positively contribute to the national balance of payments and positions MC Mining as South Africa's pre-eminent producer of high-grade metallurgical coal"
"

[ianio5691] 18/1/2019 09:16

Current shareprice of 60p still only 3p pre name change and 20/1 consolidation.

As CZA (pre consolidation) it was fairly settled around the 12p mark for months, when all the bad news hit a few years ago. Prior to that the Chinese invested heavily at 25p.
I think over the medium term this is where we will head back to.
That gives a current shareprice target of 240p and 500p.

We just need news and timeline for commencement of Makhado, and hopefully of another CGA.

[2bozmo] 16/1/2019 09:53

Indeed, have to be in this stock as nothing there when it moves.