Mc Mining LtdASX: MCM

Activities report for the quarter ended 30 June 2025

· Issued by Mc Mining Ltd
ANNOUNCEMENT 31 July 2025


ACTIVITIES REPORT FOR THE QUARTER ENDED 30 JUNE 2025 (FY2025 Q4) FOR MC MINING LIMITED (MC Mining or the Company) AND ITS SUBSIDIARY COMPANIES

HIGHLIGHTS

Operations

  • Health and safety performance across the group improved, with the Company having operated with no lost time injuries (LTI) for the quarter. The Makhado steelmaking hard coking coal Project (Makhado Project or Makhado) has now reached 817 days LTI-free, for 556,000 manhours worked, whilst Uitkomst steelmaking coal Colliery (Uitkomst Colliery or Uitkomst) reached 136 days LTI-free;

  • Development of the Makhado Project continued on schedule, with commissioning of the coal handling and preparation plant (CHPP or Coal Plant) expected by December 2025, the principal mining contractor being appointed and commencing with site establishment, procurement activities for the Coal Plant reaching factory acceptance testing stage for critical equipment, significant progress being made towards the commissioning of the 14km overhead power transmission line and work on the permanent bridge to access the project site having commenced;

  • The operational improvement plan for Uitkomst Colliery (Turnaround Plan) was completed and is set to be in full implementation during the coming quarter, with a specialist mining engineering and consultancy firm, Metalla Tutum Engineering Proprietary Limited (MTE), co-opted to assist with the implementation. The Turnaround Plan should see an improvement in cost, stabilise earnings and result in operating efficiencies at the mine.

  • Run-of-mine (ROM) coal production from Uitkomst Colliery improved 3% on the previous quarter's production, though was 9% lower than the June 2024 quarter at 104,129 tonnes (t) (FY2024 Q4: 113,977t). The reduction in production, compared to 2024, was due to disruptions in production whilst reconfiguring underground layouts as part of the Turnaround Plan and also due to lower-than-expected coal seam mining heights in some areas of the mine;

  • Uitkomst Colliery sold 68,020t of high-grade coal during the quarter (FY2024 Q4: 62,274t), a 9% increase on 2024 sales, and had no sales of the lower grade middlings coal (FY2024 Q4: 10,099).





    Coal plant yields remained high at 69% due to operational improvement initiatives over the period, which offset the lower ROM coal production to result in improved sales volumes;

  • Limited activities were undertaken at the Company's Vele Aluwani semi-soft coking coal (SSCC) and thermal coal (TC) Colliery (Vele Colliery or Vele), whilst the numerous coal deposits within the Greater Soutpansberg Projects (GSP) were evaluated and prioritised for development; and

  • Depressed TC prices continued with average prices of US$90/t for the three months, compared to US$96/t in Q3 FY2025 and US$108/t in Q4 of FY2024. Premium steelmaking HCC prices have decreased, averaging US$184/t in the quarter compared to US$243/t in FY2024 Q4.

    Corporate

  • Available cash and facilities was US$7.4 million at the period end (FY2025 Q3: US$9 million);

  • Kinetic Development Group Limited (KDG) made payments amounting to US$10 million for the purchase of MC Mining shares, as part of the share subscription agreement, during the quarter. US$5 million of the payment relates to the third Second Closing and US$5 million of the payment relates to the fourth Second Closing as per the Share Subscription Agreement.

  • The Company made a further repayment of ZAR10 million towards the Industrial Development Corporation (IDC) loan during the quarter.

  • Wang Lanlan (Lily) was appointed as a Non-Executive Director of MC Mining;

  • Dr Huoxin Wang (Hevin) was appointed as a Non-Executive Director of MC Mining; and

  • An Chee Sin resigned from being a Non-Executive Director of MC Mining.

OPERATIONS REPORTS



DETAILED QUARTERLY

Makhado HCC Project - Soutpansberg Coalfield, Limpopo Province, South Africa (67% owned) Project Overview. Construction of the Makhado steelmaking hard coking coal Project (Makhado Project or Makhado) progressed as planned, with commissioning of the Coal Plant scheduled for December 2025. During the quarter, more project development milestones were successfully achieved, whilst maintaining the excellent safety, health, environmental and regulatory compliance performances that have become a recognizable feature of the venture to date. The colliery will be South Africa's largest HCC producer, designed to produce 800,000 tonnes a year of HCC 64 Mid Vol, once steady-state operation for the foundation phase is reached. The life-of-mine (LOM) for the Makhado Colliery is planned to be 28 years. Contiguous to the Makhado Project are the satellite Greater Soutpansberg Projects (GSP), that are all at granted Mining Right status, also endowed with steelmaking HCC potential, and scheduled to be the focus of mine planning, once the Makhado Project is commissioned. Health, Safety and Environmental Performance. The Makhado Project achieved another quarter free from any LTIs (FY2025 Q3: nil), with 817 days LTI-free and 556,000 manhours now accumulated for the project to date. Approximately 388 people are now working onsite, with numbers expected to almost double during the coming quarter.

The mine continued to be built with zero reportable environmental incidents and keen emphasis being placed on environmental protection and management. Visits were successfully hosted for officials from the Department of Mineral and Petroleum Resources (DMPR) to assess compliance with the site's Environmental Authorisation obligations. Statutory reporting, including Pollution Prevention Plans, Groundwater and Stormwater Management reports, the Greenhouse Gas Emission report, the Wet Season Bio-monitoring report and the National Atmospheric Emissions Inventory System (NAEIS) update, were all submitted timeously to the relevant regulatory authorities. The Company continues to promote collaborative and constructive relationships with regulatory authorities and host community stakeholders.



Project Development Milestones Achieved. Development of the Makhado Project is on schedule for the December 2025 Coal Plant commissioning and project expenditure remains within the budgeted estimates. The following key milestones were achieved for the quarter:

  • appointment of the principal mining contractor, JCI Mining Proprietary Limited (JCI): - JCI, a South African-based specialist surface mining contractor, was formally awarded a 5-year duration contract to undertake contract mining for the Makhado Project. JCI's site establishment is already underway with mining of the East Pit boxcut scheduled to build up during the coming quarter. JCI will mobilise the mining fleet, a 200-strong workforce and the management and supervision to initially target the mining of 2Mtpa of ROM coal by conventional load and haul, using backhoe-configured excavators and a fleet of articulated dump trucks.

  • Detailed design of the Coal Plant completed and equipment procurement at factory acceptance testing stage for critical equipment: - With the detailed design work for the Coal Plant now completed, the electrical and instrumentation design workstream is now in progress. Civil construction, which commenced last quarter, is well advanced for the majority of the Coal Plant work packages, structural steel fabrication has started, platework orders placed and equipment procurement is far enough progressed that the first factory acceptance testing, for vibrating screens, mineral sizers and the feeder breaker have been arranged. The CHPP will process ROM coal to produce a primary product of HCC 64 Mid Vol and a secondary product of 5,500kcal API4 thermal coal (TC). Work has also started on planning the expansion strategy once the foundation phase is commissioned.

  • Commencement of permanent access bridge: - The construction of a permanent bridge crossing the Mutamba River, to provide access to the mine site has commenced, with the first activity being the drilling and installation of 16 piles to support the bridge abutment and piers. Bridge construction is scheduled for completion before major rains at year's end. A temporary access bridge, completed last quarter is currently being used to provide site access.

  • Construction power reticulation: - During the quarter, emphasis was on obtaining the requisite electrical equipment specifications approvals from the national power utility company (Eskom) and on the follow-on procurement of critical components for power reticulation. Many of the critical components have now been approved by Eskom, allowing



    the work on the Paradise Overhead Line (OHL) to progress. The OHL will be a 14km long, 22kV bulk power transmission line, to deliver 7.5MVA of power to the site from the national grid, via the nearby Paradise Power Station. This workstream is being managed by the EHL Engineering Group (EHL) on an EPC-turnkey basis.

    Outlook. Construction work and operational readiness activities are ongoing, with open pit mining activities set to commence in earnest during the coming quarter. Uitkomst steelmaking coal Colliery - Utrecht Coalfields, KwaZulu Natal Province, South Africa (84% owned) Colliery Overview. Intensive re-engineering and operational reviews were completed, resulting in the development of a performance improvement plan for the colliery (the Turnaround Plan). The plan will be in full implementation during the coming quarter. The Turnaround Plan aims to introduce operational changes that will lower operating costs and deliver a commercially viable business, given the low coal price environment, and a mature underground mine that hosts significant high quality coal reserves. Coal preparation plant yields were pleasing at 69% which helped offset the lower than planned ROM coal tonnes mined. Health, Safety and Environmental Performance. Uitkomst Colliery had a quarter free of reportable environmental incidents and LTIs (FY2025 Q3: four LTI). The concerted efforts by site personnel, focusing on behaviour-based safety principles, realignment sessions and operational improvement reviews, have contributed to an improvement in health and safety performance over the period. Production Performance. The colliery mined 104,129t of ROM coal during the quarter, which was a 3% increase on the previous quarter, though 9% decrease on 2024 (FY2024 Q4: 113,977t). The 9% decrease in ROM coal production compared to the same period the previous year was due, in part, to disruptions in production whilst reconfiguring the underground mining layout as part of the Turnaround Plan and due to lower coal seam mining heights than was expected in some sections. Outlook is for an improvement in coal seam mining heights over the next quarter as the operating sections continue to move through the low seam zones. Underground mining fleet condition assessments and remediation plans have commenced to be implemented during the quarter. More


    modifications made to the coal preparation plant in combination with a greater proportion of coal being mined from higher yielding sections of the mine saw plant yields remain high at 69% for the quarter.

    Uitkomst sold 68,020t (FY2024 Q4: 62,274t) of high-grade duff and peas coal, a 9% improvement on the same period last year. The colliery sold no middlings coal during the three months (FY2024 Q4: 10,099). The colliery had 1,518t (FY2024 Q4: nil) of high-grade coal inventory at the end of June 2025.

    The production costs per saleable tonne were 9% lower than the comparative period in 2024 (FY2025 Q4: US$88/t vs. FY2024 Q4: US$96/t). The increase in sales volumes and improved plant yields resulted in the decrease in unit production costs.

    Outlook. Uitkomst Colliery, as of the end of the quarter, has commenced with the implementation of the Turnaround Plan. The focus remains on implementing initiatives to reduce unit operating costs whilst improving safety performance. The Turnaround Plan is being implemented with the assistance of Metalla Tutum Engineering Proprietary Limited (MTE). MTE is a South African specialist mining engineering and consulting firm, established in 2017, with expertise in mine management and operational improvements.

    Key focus areas of the Turnaround plan are to:

  • reconfigure underground mining layouts to streamline operational efficiencies and resource deployment;

  • implement Coal Plant modifications to improve coal product yields;

  • reduce workforce numbers from 430 to 366, with minimal forced retrenchments; and

  • enter into longer-term coal offtake agreements to improve price certainty.

    These changes should see Uitkomst:

  • improve on the operations safety and health performance;

  • further reduce unit costs of saleable coal production to respond to the current low coal price environment; and

  • reduce the volatility in earnings.

Quarter to end-Jun

2025

Quarter to end-Jun

2024

%▲

Production volumes

Uitkomst ROM (t)

104,129

113,977

(9%)

Inventory volumes

High quality duff and peas (t)

1,518

-

100%

Sales tonnages

High quality duff and peas (t)

68,020

62,274

9%

Middlings sales (t)

-

10,099

(100%)

68,020

72,372

(6%)

Quarter financial metrics

Net revenue/t (US$)

75

74

1%

Net revenue/t (ZAR)

1,373

1,383

(1%)

Production cost/saleable tonne (US$)^

88

96

(9%)



^ costs are all South African Rand (ZAR) based

Vele Aluwani SSCC and TC Colliery - Limpopo (Tuli) Coalfield (100% owned)

Operations at Vele remain suspended. Vele recorded no LTIs (FY2025 Q3: nil) during the quarter.

Greater Soutpansberg Projects (GSP) - Soutpansberg Coalfield (74% owned)

The GSP recorded no LTIs (FY2025 Q3: nil) during the quarter. The GSP are a group of mineral tenements, held as Mining Rights and satellite to the Makhado Project. Work has commenced on assessing and prioritising the various tenements, as part of developing the future pipeline of steelmaking HCC prospects to supplement the Makhado Colliery production. The work required to obtain environmental and water use licences for the Mining Rights are expected to commence during H2 CY2025.



Appendix 5B - Quarterly Cash Flow Report

The Company's available cash balance and facilities as at 30 June 2025 was US$7.4 million. The aggregate amount of payments to related parties and their associates, as disclosed as item 6.1 of the June 2025 quarter Appendix 5B, was US$172k, comprising executive and non-executive director remuneration.

Christine He Interim Managing Director and Chief Executive Officer

This announcement has been approved by the Company's Disclosure Committee.

All figures are in South African rand or United States dollars unless otherwise stated.

For more information contact:

Bill Pavlovski

Company

Secretary

Vision Corporate

(Pty) Ltd

bill.pavlovski@mcmining.co.za

Company advisers:

BSM Sponsors Proprietary Limited is the nominated JSE Sponsor

About MC Mining Limited:

MC Mining is an ASX/JSE-listed coal exploration, development and mining company operating in South Africa. MC Mining's key projects include the Uitkomst Colliery (metallurgical and thermal coal), Makhado Project (hard coking coal), Vele Colliery (semi-soft coking and thermal coal), and the Greater Soutpansberg Projects (coking and thermal coal).

All figures are denominated in United States dollars unless otherwise stated. Safety metrics are compared to the preceding quarter while financial and operational metrics are measured against the comparable period in the previous financial year. A copy of this report is available on the Company's website, https://www.mcmining.co.za.

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.

Tenements held by MC Mining and its Controlled Entities

Project

Name

Tenement Number

Location

Interest

Change

during

quarter

Chapudi

Project*

Albert 686 MS

Limpopo~

74%

Bergwater 712 MS

74%

Remaining Extent and Portion 2 of Bergwater 697 MS

74%

Blackstone Edge 705 MS

74%

Remaining Extent & Portion 1 of Bluebell 480 MS

74%

Remaining Extent & Portion 1 of Bushy Rise 702 MS

74%

Castle Koppies 652 MS

74%

Chapudi 752 MS

74%

Remaining Extent, Portions 1, 3 & 4 of Coniston 699 MS

74%

Driehoek 631 MS

74%

Remaining Extent of Dorps-rivier 696 MS

74%

Enfield 512 MS (consolidation of Remaining Extent of Enfield 474 MS, Brosdoorn 682 MS & Remaining Extent of Grootvlei 684 MS)

74%

Remaining Extent and Portion 1 of

74%

Grootboomen 476 MS

74%

Grootvlei 684 MS

74%

Kalkbult 709 MS

74%

Project

Name

Tenement Number

Location

Interest

Change

during

quarter

Remaining Extent, Remaining Extent of Portion 2, Remaining Extent of Portion 3, Portions 1,

4, 5, 6, 7 & 8 of Kliprivier 692 MS

74%

Remaining Extent of Koodoobult 664 MS

74%

Koschade 657 MS (Was Mapani Kop 656 MS)

74%

Malapchani 659 MS

74%

Mapani Ridge 660 MS

74%

Melrose 469 MS

74%

Middelfontein 683 MS

74%

Mountain View 706 MS

74%

M'tamba Vlei 654 MS

74%

Remaining Extent & Portion 1 of Pienaar 635 MS

74%

Remaining Extent & Portion 1 of Prince's Hill 704 MS

74%

Qualipan 655 MS

74%

Queensdale 707 MS

74%

Remaining Extent & Portion 1 of Ridge End 662 MS

74%

Remaining Extent & Portion 1 of Rochdale 700 MS

74%

Sandilands 708 MS

74%

Portions 1 & 2 of Sandpan 687 MS

74%

Sandstone Edge 658 MS

74%

Remaining Extent of Portions 2 & 3 of Sterkstroom 689 MS

74%

Sutherland 693 MS

74%



Project

Name

Tenement Number

Location

Interest

Change

during

quarter

Remaining Extent & Portion 1 of Varkfontein 671 MS

74%

Remaining Extent, Portion 2, Remaining Extent of Portion 1 of Vastval 477 MS

74%

Vleifontein 691 MS

74%

Ptn 3, 4, 5 & 6 of Waterpoort 695 MS

74%

Wildebeesthoek 661 MS

74%

Woodlands 701 MS

74%

Kanowna West & Kalbara

M27/41

Coolgardie^

Royalty<>

M27/47

Royalty<>

M27/59

Royalty<>

M27/72,27/73

Royalty<>

M27/114

Royalty<>

M27/196

Royalty<>

M27/181

5.99%

M27/414,27/415

Royalty<>

P27/1826-1829

Royalty<>

P27/1830-1842

Royalty<>

P27/1887

Royalty<>

Abbotshall Royalty

ML63/409,410

Norseman^

Royalty

Kookynie

Royalty

ML40/061

Leonora^

Royalty

ML40/135,136

Royalty

Makhado

Project

Fripp 645 MS

Limpopo~

67%#

Lukin 643 MS

67%#

Mutamba 668 MS

67%#

Salaita 188 MT

67%#



Project

Name

Tenement Number

Location

Interest

Change

during

quarter

Tanga 849 MS

67%#

Daru 889 MS

67%#

Windhoek 900 MS

67%#

Generaal

Project*

Beck 568 MS

Limpopo~

74%

Bekaf 650 MS

74%

Remaining Extent & Portion 1 of Boas 642 MS-

74%

Chase 576 MS

74%

Coen Britz 646 MS

74%

Fanie 578 MS

74%

Portions 1, 2 and Remaining Extent of Generaal 587 MS

74%

Joffre 584 MS

74%

Juliana 647 MS

74%

Kleinenberg 636 MS

74%

Remaining Extent of Maseri Pan 520 MS

74%

Remaining Extent and Portion 2 of Mount Stuart 153 MT

100%

Nakab 184 MT

100%

Phantom 640 MS

74%

Riet 182 MT

100%

Rissik 637 MS

100%

Schuitdrift 179 MT

100%

Septimus 156 MT

100%

Solitude 111 MT

74%

Stayt 183 MT

100%

Remaining Extent & Portion 1 of Terblanche 155 MT

100%



Project

Name

Tenement Number

Location

Interest

Change

during

quarter

Van Deventer 641 MS

74%

Wildgoose 577 MS

74%

Mopane

Project*

Ancaster 501 MS

Limpopo~

100%

Banff 502 MS

74%

Bierman 599 MS

74%

Cavan 508 MS

100%

Cohen 591 MS

100%

Remaining Extent, Portions 1 & 2 of Delft 499 MS

74%

Dreyer 526 MS

74%

Remaining Extent of Du Toit 563 MS

74%

Faure 562 MS

74%

Remaining Extent and Portion 1 of Goosen 530 MS

74%

Hermanus 533 MS

74%

Jutland 536 MS

100%

Krige 495 MS

74%

Mons 557 MS

100%

Remaining Extent of Otto 560 MS (Now Honeymoon)

74%

Remaining Extent & Portion 1 of Pretorius 531 MS

74%

Schalk 542 MS

74%

Stubbs 558 MS

100%

Ursa Minor 551 MS

74%

Van Heerden 519 MS

74%

Portions 1, 3, 4, 5, 6, 7, 8, 9,

Remaining Extent of Portion 10, Portions 13, 14, 15, 16, 17, 18,

74%



Project

Name

Tenement Number

Location

Interest

Change

during

quarter

19, 20, 21, 22, 23, 24, 26, 27, 29,

30, 35, 36, 37, 38, 39, 40, 41, 44,

45, 46, 48, 49, 50, 51, 52 & 54 of

Vera 815 MS

Remaining Extent of Verdun 535 MS

74%

Voorburg 503 MS

100%

Scheveningen 500 MS

74%

Uitkomst Colliery and

prospects

Portion 3 (of 2) of Kweekspruit No.

22

KwaZulu-

Natal~

84%

Portion 8 (of 1) of Kweekspruit No.

22

84%

Remainder of Portion 1 of Uitkomst

No. 95

84%

Portion 5 (of 2) of Uitkomst No. 95

84%

Remainder Portion1 of Vaalbank No. 103

84%

Portion 4 (of 1) of Vaalbank No. 103

84%

Portion 5 (of 1) of Vaalbank No. 103

84%

Remainder of Portion 1 of Rustverwacht No. 151

84%

Remainder of Portion 2 of

Rustverwacht No. 151

84%

Remainder of Portion 3 (of 1) of

Rustverwacht No. 151

84%

Portion 4 (of 1) Rustverwacht

No.151

84%

Portion 5 (of 1) Rustverwacht No.

151

84%

Remainder of Portion 6 (of 1) of

Rustverwacht No. 151

84%

Portion 7 (of 1) of Rustverwacht No.

151

84%

Portion 8 (of 2) of Rustverwacht No.

151

84%

Remainder of Portion 9 (of 2) of

Rustverwacht No. 151

84%

Portion 11 (of 6) of Rustverwacht

No. 151

84%

Portion 12 (of 9) of Rustverwacht

No. 151

84%



Project

Name

Tenement Number

Location

Interest

Change

during

quarter

Portion 13 (of 2) of Rustverwacht

No. 151

84%

Portion 14 (of 2) of Rustverwacht

No. 151

84%

Portion 15 (of 3) of Rustverwacht

No. 151

84%

Portion 16 (of 3) of Rustverwacht

No. 151

84%

Portion 17 (of 2) of Rustverwacht

No. 151

84%

Portion 18 (of 3) of Waterval No.

157

84%

Remainder of Portion 1 of Klipspruit

No. 178

84%

Remainder of Portion 4 of Klipspruit

No. 178

84%

Remainder of Portion 5 of Klipspruit

No. 178

84%

Portion 6 of Klipspruit No. 178

84%

Portion 7 (of 1) of Klipspruit No.

178

84%

Portion 8 (of 1 )of Klipspruit No.

178

84%

Portion 9 of Klipspruit No. 178

84%

Remainder of Portion 10 (of 5) of Klipspruit No. 178

84%

Portion 11 (of 5) of Klipspruit No.

178

84%

Portion 13 (of 4) of Klipspruit No.

178

84%

Remainder of Portion 14 of

Klipspruit No. 178

84%

Portion 16 (of 14) of Klipspruit No.

178

84%

Portion 18 of Klipspruit No. 178

84%

Portion 23 of Klipspruit No. 178

84%

Remainder of Portion 1 of Jackalsdraai No. 299

84%

Remainder of Jericho B No. 400

84%

Portion 1 of Jericho B No. 400

84%

Portion 2 of Jericho B No. 400

84%



Project

Name

Tenement Number

Location

Interest

Change

during

quarter

Portion 3 of Jericho B No. 400

84%

Remainder of Jericho C No. 413

84%

Portion 1 of Jericho C No. 413

84%

Remainder of Portion 1 of Jericho A No. 414

84%

Remainder of Portion 2 (of 1) of

Jericho A No. 414

84%

Portion 3 (of 1) of Jericho A No. 414

84%

Portion 4 (of 1) of Jericho A No. 414

84%

Portion 5 (of 2) of Jericho A No. 414

84%

Portion 6 (of 1) of Jericho A No. 414

84%

Margin No. 420

84%

Vele

Portions of Overvlakte 125 MS

Limpopo~

100%

Colliery

(Remaining Extent, 3, 4, 5, 6, 13,

and

14)

prospects

Bergen Op Zoom 124 MS

100%

Semple 155 MS

100%

Voorspoed 836 MS

100%

Alyth 837 MS

100%



* Form part of the Greater Soutpansberg Projects

~ Tenement located in the Republic of South Africa

^ Tenement located in Australia

#MC Mining's interest will reduce to 67% on completion of the 26% Broad Based Black Economic Empowerment (BBBEE) transaction

<> net smelter royalty of 0.5%