Minergy Limited – A coal mining and trading company

About Minergy

Minergy's 100% owned Masama Coal Mine which is located in the Mmamabula Coalfield of Botswana is the cornerstone asset in the company's strategy. The size and location of this shallow resource supports its competitive cost structure, which is underpinned by cost-effective opencast mining of high quality coal. The resource is near to existing rail, road and water infrastructure, and has significant distance advantages over existing coal suppliers to regional markets.

Overburden moved, and coal extracted increased by 82% and 54%, respectively
For the first time since inception, >1 million tonnes was extracted in a financial year
- Plant throughput volumes, buoyed by the completion of stage 4, increased by 49%
This supported the production of product mixes in line with forecasts and away from uneconomical fractions
Water utilisation improving (33% savings in litre per tonne), justifying the investment in the dewatering screen, filter press and rigid screening section
Sales volumes increased by 41%. Since inception Minergy has sold more than 1 million tonnes of coal
Monthly sales volume record >75 000 tonnes achieved in May 2022 on the back of destocking and Free-on-Board (“FOB”) export sales
Sales of larger, more profitable product sizes into seaborne thermal coal export markets successfully delivering two FOB vessels from Walvis Bay and exporting coal via Zimbabwe to Maputo by rail
Continuous road maintenance of the public road from Medie, albeit expensive, allowing minimal interruptions during the rainy season and supported increased road transport
Excellent health and safety records ‣ Bolstering of the management team, including the first female manager appointed as a process engineer

FINANCIAL

Increasing cost pressure of diesel and explosives increasing by 127% and 57%, respectively, exacerbated by double-digit inflation in Botswana
Pure coal revenue (ex-transport) increased by 77% to P297m (2021: P167m), driven by:
- 41% volume increase
- Average sales prices increasing by 26%
A continued trend in decreasing operating expenditures, including employee costs
Stable ZAR/BWP exchange rate
Operating loss improved to P74m (2021: loss P85m), primarily due to Minergy achieving breakeven in the last quarter, cementing a good foundation for the future
Cash losses improved from P74m to P58m (a 22% improvement from 2021 and 39% improvement from 2020)
High and increasingly expensive finance costs from increased funding and higher debt restructuring rates
P9m paid in royalties (2021: P5m) and P5m paid in withholding taxation, which support the local economy
Net cash used in operating activities increased to P110m (2021: P37m) on the back of increased working capital investment contributing a swing of P91m alone from growth in Q4

ENVIRONMENT

Rehabilitation is an ongoing process, and all mining is undertaken within the parameters of the mining licence
4.2 million m3 rehabilitated in FY22. This exceeded the total volume rehabilitated since the start of mining operations
Increased use of dust suppression to curtail dust and construction of speed humps

SOCIAL

Corporate social responsibility remains core to Minergy for communities in and around the mining area (Refer to the Minergy Cares brochure on the website)
Citizen Economic Empowerment Plan in place, including using 22 local transporters
96% of the workforce is Batswana, and 97% of the staff are vaccinated
P488m was spent on local registered company procurement

GOVERNANCE

Unitary, functioning Board of Directors in place
Strong ethical base with Whistleblowing Hotline in place

TOP PRIORITIES FOR 2023

Maintain production capacity with resultant stable profitability and cash flows

Normalise the capital structure

Increase sales and advance relationships formed with new customers

Corporate social investment

Latest News

Minergy experiences exceptional turnaround in fourth quarter FY22

Press releases

Loss-making trend replaced with profitability and positive cash flows 20 September 2022 – Gaborone – Minergy, the coal mining and trading company, today released results for the year ended 30 June 2022. The Group achieved combined revenue of P425 million (2021: P193 million), with cost of sales of P484 million (2021: P256 million). Pure coal […]

September 20, 2022

Minergy provides market update

Press coverage

Botswana-based coal miner, Minergy, has provided a voluntary update to the market ahead of releasing its interim results for the period ended 31 December 2021 in mid-March. The company cited substantial progress being made toward reaching nameplate capacity of 125 000 tpm during the six-month period, with achievements having included producing the highest six-monthly volumes […]

January 31, 2022

more news

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Progress of the Masama Coal Mine

Watch Progress of the Masama Coal Mine

Masama Coal Resource

Minergy’s focus is the development of the Masama Coal Mine within the scope of the Prospecting Licence located on the south western edge of the Mmamabula Coalfield in southern Botswana. Minergy’s wholly owned subsidiary Minergy Coal holds the Prospecting Licence for Coal and Coal-Bed Methane, where a 380Mt Coal Resource has recently been independently delineated.

P.O Box 2330 ABG, Broadhurst, Gaborone, Botswana, Tel: +267 397 2891

Whistleblowing Hotline Contact Details
Email Address (for emails and attachments): minergy@i-Tell.africa
For additional information please go to the contact page on the website

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