Minergy : Results – Six months ended 31 December 2023 | (4.7Mb)

DISCLAIMER

• This Presentation (the "Presentation") is for information purposes only and does not comprise a prospectus or other offering document under the laws of any jurisdiction, including Botswana law, and will not be lodged with the Companies and Intellectual Property Authority, nor any other regulatory body in terms of any other laws.
• This Presentation does not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in Minergy Coal (the "Company"). In particular, this Presentation does not constitute an offer to sell or a solicitation of an offer to buy securities in Botswana or any other jurisdiction outside of Botswana.
• This Presentation contains forward-looking financial information, and as any forward-looking information is based on assumptions concerning future events and the timing of such events, actual results may vary materially from the profit estimates and other estimates and forecasts which have been presented. Consequently, no assurances are given on whether or not the estimates made herein will be achieved. References to historical facts are recorded on the best information available to the Company and, although believed to be accurately recorded, may prove incorrect and is not to be relied upon. There can be no assurance that the Company's actual results will match plans and forecasts.

• The contents of this Presentation are not to be construed as legal, financial or tax advice. You are urged to make every effort to familiarise yourself with the implications and the consequences of the non-attainment of objectives and profit estimates and other estimates and forecasts and timelines outlined in the Presentation. You are responsible for obtaining such financial, legal, and tax advice as it considers necessary or appropriate with regard to this Presentation. You are urged to obtain independent financial, legal and tax and investment advice.
• The Company has prepared this Presentation based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in this Presentation. To the maximum extent permitted by law the Company and its officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability, including without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the Presentation or its contents or otherwise arising in connection with it.

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OVERVIEW OF THE YEAR

OPERATIONAL

➢ Termination of Jarcon contract

- September 2023.

➢ Temporary interruption of mining activities resulting in no coal fed through the plant.

➢ Appointment of Meropa Resources as the new mining

contractor - December 2023.

Burgeoning coal prices

FUNDING

• MDCB injected P299m in debt funding.
• The funding is crucial for;
• • the strategic turnaround plan
  • settling obligations with the former mining contractor.

MARKETS & SALES

• Coal Markets depressed due to drop in export prices causing an oversupply of coal in the regional market affecting revenue potential.
• Limited stocks resulting in low sales to key customers in Q2.

Coal Price Trend (USD/t)

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HEALTH AND SAFETY

Total Staff

500		442			450
450				400
400	353		366		350
350					300
300
				250
250
				200
200				177
				150
150
100					100
50					50
-					0
	2021	2022	2023	2024 HY

Total Males Females

OUTSTANDING SAFETY RECORD

ManHours	LTIFR	TRIFR
Worked
	0.036	0.135
865,738Hrs

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DUST SUPPRESSION AND ROAD SAFETY

Effective road maintenance of the public roads

• Dust suppression in and around Lentsweletau & Medie villages to control dust from road traffic.
• Road Maintenance costs HY24 P1.8m (HY23: P4.6 million)

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OPERATIONAL PERFORMANCE

OVERBURDEN (17,862,241m3)

8,000,000

6,000,000

4,000,000

2,000,000

- FY20 FY21 FY22 FY23 HY24

FTP

(3,495,724t)

1,500,000

1,000,000

500,000

- FY20 FY21 FY22 FY23 HY24

COAL MINED (3,490,369t)

1,500,000

1,000,000

500,000

-

FY20

FY21

FY22

FY23

HY24

Overburden Mining

• 384,1000m3

Coal Mined

• 105,481t

Feed-to-Plant

• 106,773t

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SALES PERFORMANCE

SALES (1,918,393t)

700,000

600,000

500,000

400,000

300,000

200,000

100,000 -

FY20 FY21 FY22 FY23 Dec-23

YTD

INDUSTRY

11%

16%

PRODUCT MIX

17%

17%

53%

13%

Duff

Peas

Mixed Nuts

0x50mm

GEOGRAPHY

1%

10% 9%

60%

13%

80%

Cement Steel Traders / Industry Seaborne Export

Namibia South Africa Seaborne Export Botswana

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STATEMENT OF COMPREHENSIVE INCOME
	-FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Group	31 December 2023	31 December 2022
	(Pula)	(Pula)
Revenue	52 769 102	330 269 553
Cost of sales	(107 911 997)	326 189 673
Gross loss	(55 142 895)	4 079 880
Other income	48 891 585	7 571 616
Operating expenses	(7 630 944)	(10 128 544)
Operating profit/(loss)	(13 882 254)	1 522 952
Net finance costs	(79 009 100)	(59 091 442)
Loss before income tax	(92 891 354)	(57 568 490)
Income tax credit	20 436 097	12 665 068
Total loss for the year	(72 455 257)	(44 903 422)

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