Minergy : Condensed group audited financial results for the year ended 30 June 2021 (1.6MB)

CONDENSED GROUP AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2021

Minergy Limited

(Incorporated in accordance with the laws of Botswana) (Company Number: BW00001542791) www.minergycoal.com

("Minergy" or "the Company")

Minergy achieved record breaking production and sales during the year, despite operational constraints resulting from the impact of COVID-19 restrictions on logistics, excessive rain, and the consequences of delays in concluding funding. The Company has made great strides towards nameplate capacity despite trying conditions and expects to reach consistent steady-state levels of production in the 2022 financial year.

OVERVIEW OF THE 2021 FINANCIAL YEAR

The main features of the 2021 financial year are summarised by quarter as follows:

Quarter 1: A recovery in production and processing levels on the back of the reopening of economies post initial COVID-19 lockdowns.

Quarter 2: The successful completion of the rail siding, facilitating the export of coal via rail, and commissioning of Stage 2 of the coal handling and preparation plant ("CHPP") crushing section. Delays were experienced in concluding funding, creating restrictions on operations by contractors managing arrears together with further COVID-19 implications on cross-border logistics, reducing the production and sale of product. The international pricing of coal showed a recovery from low COVID-19 levels.

Quarter 3: Production and sales during most of this quarter was heavily impacted by extraordinarily high rainfall experienced in Botswana, which was exacerbated by tropical storm Eloise moving through the region. Positive COVID-19 cases were recorded on the mine for the first time with associated impacts on production such as lost shifts. There was, however, a continued recovery of international seaborne thermal coal prices.

Quarter 4: A stable production environment yielded increased production volumes, nearing nameplate capacity as well as increases in sales underpinned by a bullish market.

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HIGHLIGHTS OF THE 2021 FINANCIAL YEAR

FINANCIAL

• Revenue, which includes transport recoveries, increased by 139% to P193 million (2020: P81million).
• Net cash used in operating activities improved to P36.5 million.
• Debt funding amounting to P125 million was secured.

OPERATIONAL

• Mining and plant throughput volumes increased by 50% and 37% respectively.
• Coal sales increased to 416 185 tonnes.
• Additional off-take agreement concluded.
• Commissioning of rigid crushing section completed.
• Dewatering circuit and filter press commissioned, reducing water usage by 60% per tonne of coal.

HEALTH AND SAFETY

• More than 1 000 days since mine inception with zero injuries, no lost time or fatalities.
• Mine recorded 60 positive COVID-19 cases with no loss of life.
• COVID-19plan remains in place, which has allowed for effective management.

SOCIAL

• 95% of workforce is Batswana.
• Corporate social responsibility remains core to Minergy for communities in and around the mining area.
• Implementation of a Citizen Economic Empowerment Plan.

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STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2021

Figures in Pula	2021	2020

ASSETS

Non-current assets
Property, plant and equipment	390 835 008	340 602 189
Deferred tax asset	68 103 074	39 095 799
	458 938 082	379 697 988
Current assets
Inventories	42 632 873	48 355 150
Trade and other receivables	40 941 636	13 960 609
Cash and cash equivalents	911 485	1 712 055
	84 485 994	64 027 814
Total assets	543 424 076	443 725 802
EQUITY AND LIABILITIES
Capital and reserves
Stated capital	165 563 026	165 563 026
Accumulated loss	(245 269 838)	(139 695 949)
Other reserves	23 676 115	17 258 242
Equity attributable to owners of the parent	(56 030 697)	43 125 319
Total equity	(56 030 697)	43 125 319
Non-current liabilities
Borrowings	365 377 304	252 348 149
Rehabilitation provision	82 498 832	69 760 293
	447 876 136	322 108 442
Current liabilities
Borrowings	17 967 584	7 913 719
Trade and other payables	133 611 053	70 578 322
	151 578 637	78 492 041
Total liabilities	599 454 773	400 600 483
Total equity and liabilities	543 424 076	443 725 802

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STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2021

Figures in Pula	2021	2020
Revenue	192 948 727	80 650 039
Cost of sales	(255 579 306)	(149 918 714)
Gross loss	(62 630 579)	(69 268 675)
Other income	254 091	97 614
Operating expenses	(23 107 529)	(31 093 212)
Operating loss	(85 484 017)	(100 264 273)
Finance income	93 612	101 097
Finance costs	(50 520 479)	(17 458 743)
Loss before income tax	(135 910 884)	(117 621 919)
Income tax	29 007 275	25 749 223
Loss for the year	(106 903 609)	(91 872 696)
Other comprehensive income for the year	-	-
Total comprehensive loss for the year	(106 903 609)	(91 872 696)
Total comprehensive loss attributable to:
Owners of the parent	(106 903 60)	(91 872 696)
Non-controlling interest	-	-
	(106 903 609)	(91 872 696)
Loss per share (thebe)	(22.75)	(20.69)
Diluted loss per share (thebe)	(22.75)	(20.69)

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