Minergy Limited’s 2023 Financial Year: Total Revenue Surges by 21% to P512 Million, Despite Challenges in Coal Market.

Published On: September 29, 2023Company: Minergy Limited (MIN.bw)
What were the key financial outcomes of Minergy Limited's 2023 financial year?
Despite facing significant challenges in the second half of the year due to a drop in coal prices and operational issues, Minergy Limited reported an increase in total revenue by 21% to P512 million, with pure coal sales also increasing. Operating losses and EBITDA losses continued to decrease. However, an increase in mining costs and operating expenditure due to a global energy security crisis and other issues put additional financial pressure on the company.

Overview of Financial Year 2023

  • First half of the year saw record sales and production with first operating and EBITDA profits.
  • Significant drop in coal prices in the second half due to excess product in the European market led to losses, putting pressure on the group’s finances.

Financial

  • Total revenue increased by 21% to P512 million, with pure coal sales increasing significantly.
  • Pure coal sales were significantly reduced in the second half of the year due to difficult market conditions.
  • Operating losses and EBITDA losses decreased, continuing the trend of decreasing losses, supported by positive results from first half of the year.
  • Mining costs increased significantly due to global energy security crisis and higher mining strip ratio.
  • First-time generation of cash flow from operating activities.
  • Operating expenditure impacted by a vessel claim and foreign exchange losses.

Operational

  • Sales volumes dropped significantly in the second half.
  • Total of 174,000 tonnes of coal dispatched for export markets.
  • Production trends followed sales trends, with significant decrease in second half.
  • Water resources sufficient for increased production through effective water management.
  • Approvals received for North South Carrier that will support future expansion.
  • Cease of mining operations in March negatively impacted the business.
  • Partnership with the Botswana government to tar roads progressing, supporting future expansion.

Health, Safety, and Social

  • No lost time injuries reported during the period, maintaining excellent safety record.
  • Significant majority of employees are fully vaccinated or have received their first dose of COVID-19 vaccine.
  • Workforce decreased from 536 to 366 employees following halt of mining operations in March.
  • Around 95%–96% of the workforce is of Batswana origin.
  • Various internships were undertaken, and local employment was used for fencing and related tasks.

Useful links

About Minergy Limited (MIN.bw)

Minergy Limited is a coal mining and trading company in Botswana listed on the Botswana Stock Exchange (BSE). Founded in 2016, the company is dedicated to the exploration and extraction of coal resources in the country. It currently operates four mines in the Botswana region.

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