Minergy says it exported more than 615,000 tonnes of coal in a 22-month period from late 2019, notwithstanding that this period included three months of halted operations due to COVID-19.
Sales volumes for the 2021 financial year have doubled from the prior year. Record sales volumes were achieved in May 2021 and surpassed in June 2021. With operations nearing nameplate capacity, this supported increased local sales in Botswana and internationally in South Africa and Namibia. A further 12-month off-take agreement was signed, supplementing the existing three-year off-take agreement in place. Both these off-take agreements are to operators in the South African cement industry. Additional off-takes are currently being negotiated, including for the larger fraction products.
Minergy says it has benefited from the price momentum of a burgeoning commodity market, including South African coal which has seen the highest export coal pricing in a decade. In addition, average pricing has increased from a stronger South African Rand which resulted in higher Pula recovered prices at the mine in the last six-month period and a better product mix featuring larger fraction products.
Minergy announced that additional convertible debt funding was secured through the Minerals Development Company Botswana (Proprietary) Limited (MDCB) amounting to P125 million as was previously reported. Of this amount:
50 percent was drawn down in December 2020; and
The balance transferred in July 2021. This final and critical funding will allow the business to reach nameplate capacity. In conjunction with the major funders, Minergy has successfully restructured its debt to support a stabilised mining operation. Minergy continues to assess strategic investment partners to fund growth opportunities and to ensure operational sustainability of the Masama Coal Mine. The capital raise, as approved by shareholders in February 2021, is gaining momentum with positive developments expected.