For personal use only

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity

MC Mining Limited

ABN

Quarter ended ("current quarter")

98 008 905 388

30 June 2022

Consolidated statement of cash flows

Current quarter

Year to date

$USD'000

(twelve months)

$USD'000

1.

Cash flows from operating activities

1.1

Receipts from customers

4,670

30,481

1.2

Payments for

(a)

exploration & evaluation

-

-

(b)

development

(c)

production

(7,106)

(25,594)

(d)

staff costs

(484)

(1,822)

(e)

administration and corporate costs

(1,151)

(4,777)

1.3

Dividends received (see note 3)

1.4

Interest received

-

-

1.5

Interest and other costs of finance paid

(49)

(123)

1.6

Income taxes paid

1.7

Government grants and tax incentives

1.8

Other (provide details if material)

-

-

1.9

Net cash from / (used in) operating

(4,120)

(1,835)

activities

2.

Cash flows from investing activities

2.1

Payments to acquire or for:

(a)

entities

(b)

tenements

(c)

property, plant and equipment

(128)

(3,340)

(d)

exploration & evaluation

(1)

(8)

(e)

investments

(95)

(378)

(f)

other non-current assets

ASX Listing Rules Appendix 5B (17/07/20)

Page 1

+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows

Current quarter

Year to date

$USD'000

(twelve months)

$USD'000

2.2

Proceeds from the disposal of:

(a)

entities

(b)

tenements

(c) property, plant and equipment

-

-

(d)

investments

-

-

(e) other non-current assets

2.3

Cash flows from loans to other entities

2.4

Dividends received (see note 3)

2.5

Other (provide details if material)

-

-

2.6

Net cash from / (used in) investing

(224)

(3,726)

activities

3.

Cash flows from financing activities

3.1

Proceeds from issues of equity securities

-

-

(excluding convertible debt securities)

3.2 Proceeds from issue of convertible debt securities

3.3 Proceeds from exercise of options

3.4 Transaction costs related to issues of equity securities or convertible debt securities

3.5

Proceeds from borrowings

4,823

9,396

3.6

Repayment of borrowings

(194)

(2,617)

3.7 Transaction costs related to loans and borrowings

3.8

Dividends paid

3.9

Other (provide details if material)

(93)

(1,006)

3.10

Net cash from / (used in) financing

4,536

5,773

activities

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1

Cash and cash equivalents at beginning of

2,954

3,230

period

4.2

Net cash from / (used in) operating

(4,120)

(1,835)

activities (item 1.9 above)

4.3

Net cash from / (used in) investing activities

(224)

(3,726)

(item 2.6 above)

4.4

Net cash from / (used in) financing activities

4,536

5,773

(item 3.10 above)

ASX Listing Rules Appendix 5B (17/07/20)

Page 2

+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

only

Consolidated statement of cash flows

  1. Effect of movement in exchange rates on cash held
  2. Cash and cash equivalents at end of period

Current quarter

Year to date

$USD'000

(twelve months)

$USD'000

(78)

(374)

3,068

3,068

For personal use

5.

Reconciliation of cash and cash

Current quarter

Previous quarter

equivalents

$USD'000

$USD'000

at the end of the quarter (as shown in the

consolidated statement of cash flows) to the

related items in the accounts

5.1

Bank balances

4,638

4,625

5.2

Call deposits

36

38

5.3

Bank overdrafts

(1,606)

(1,709)

5.4

Other (provide details)

5.5

Cash and cash equivalents at end of

3,068

2,954

quarter (should equal item 4.6 above)

6.

Payments to related parties of the entity and their associates

Current quarter

$USD'000

6.1

Aggregate amount of payments to related parties and their associates

106

included in item 1

6.2 Aggregate amount of payments to related parties and their associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

ASX Listing Rules Appendix 5B (17/07/20)

Page 3

+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7.

Financing facilities

Total facility

Amount drawn at

Note: the term "facility' includes all forms of financing

amount at quarter

quarter end

arrangements available to the entity.

end

$USD'000

Add notes as necessary for an understanding of the

$USD'000

sources of finance available to the entity.

7.1

Loan facilities

13,922

13,606

7.2

Credit standby arrangements

7.3

Other (please specify)

1,606

1,606

7.4

Total financing facilities

15,528

15,212

7.5

Unused financing facilities available at quarter end

316

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

All facilities are ZAR denominated and are repayable in South African Rand (ZAR)

7.1 Loan Facilities $USD10.1 million:

Lender: Industrial Development Corporation of South Africa (IDC).

Maturity date: 30 November 2022 (note). In the case of an un-remedied default, the debt is convertible into shares

Interest rate: accrues at a real after-tax rate of return of 16% on the amount advanced.

Security: Unsecured

7.3 Other $USD1.6 million (Other): Lender: ABSA Group Limited

  1. $USD 1.3 million overdraft facility
  2. USD 0.3 million short term loan

Maturity Date

  1. Reviewed annually
  2. 30 June 2022

Interest Rate:

  1. Floating rate: South African Prime plus 3%
  2. Floating rate: South African Prime plus 13%

Security

  1. Receivables
  2. Receivables, bond over Uitkomst assets

7.1 Standby Loan Facility $USD3.8 million: Lender: Dendocept (Proprietary) Ltd Maturity Date: June 2023

Interest Rate: South African Prime plus 3%

Security: Unsecured

The outstanding balance on the final maturity date is payable in cash or convertible to MC Mining equity at a price per share calculated as the prevailing 30-day Volume Weighted Average Price minus 15% on the date of conversion. Payment in MC Mining equity is at the sole discretion of MC Mining and is subject to all required shareholder and regulatory approvals, including South African exchange control approval.

ASX Listing Rules Appendix 5B (17/07/20)

Page 4

+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.

Estimated cash available for future operating activities

$USD'000

8.1

Net cash from / (used in) operating activities (item 1.9)

(4,120)

8.2

(Payments for exploration & evaluation classified as investing

(1)

activities) (item 2.1(d))

8.3

Total relevant outgoings (item 8.1 + item 8.2)

(4,121)

8.4

Cash and cash equivalents at quarter end (item 4.6)

3,068

8.5

Unused finance facilities available at quarter end (item 7.5)

316

8.6

Total available funding (item 8.4 + item 8.5)

3,384

8.7

Estimated quarters of funding available (item 8.6 divided by

0.82

item 8.3)

Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.

8.8 If item 8.7 is less than 2 quarters, please provide answers to the following questions:

8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer: Net operating cash flows will improve with the sale of the 37,703 tonnes of export quality coal on hand at the end of the reporting quarter.

8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: The Group anticipates that the funding of the operations will originate from the sale of coal on the export market. The Group has secured access to export markets through the Coal Sales & Marketing Agreement announced on 28 July 2022.

8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: Yes - refer 8.8.2 and 8.8.3 above.

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

  1. This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
  2. This statement gives a true and fair view of the matters disclosed.

Date:

.29 July 2022

Authorised by:

.......... Disclosure Committee.........................................................................

(Name of body or officer authorising release - see note 4)

ASX Listing Rules Appendix 5B (17/07/20)

Page 5

+ See chapter 19 of the ASX Listing Rules for defined terms.

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MC Mining Limited published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 09:34:08 UTC.