Group 1 - The Hong Kong coal stocks are experiencing a decline, with Mongolia Coal falling over 7% [1] - Mongolia Coal (00975.HK) decreased by 7.31%, South Gobi (01878.HK) by 4.47%, Yanzhou Coal (01171.HK) by 3.48%, and China Coal Energy (03668.HK) by 3.37% [1]

Core Viewpoint - The coal sector in Hong Kong is experiencing a strong performance, with Mongolian Coal rising nearly 11% amid a recovery in coal prices and positive supply-side policy expectations [1] Group 1: Company Performance - Mongolian Coal (00975.HK) increased by 10.95% [1] - Yanzhou Coal Mining (01171.HK) rose by 4.88% [1] - Nanshan Resources (01229.HK) saw a gain of 3.70% [1] Group 2: Market Dynamics - According to CITIC Securities, the recovery in coal prices is driving positive sentiment in the sector [1] - The sector is expected to enter a new round of opportunities due to the resonance of supply and demand expectations [1]

Core Viewpoint - The Hong Kong coal stocks have strengthened, with Mongolian Coal rising nearly 7% due to increased demand for thermal coal amid ongoing high temperatures and supply constraints [1] Group 1: Company Performance - Mongolian Coal (00975.HK) increased by 6.68% [1] - South Gobi Resources (01878.HK) rose by 5.38% [1] - China Qinfa (00866.HK) saw a rise of 4.02% [1] - Nanshan Resources (01229.HK) experienced a 2.88% increase [1] Group 2: Market Dynamics - Since July, high temperatures have led to a steady increase in thermal coal demand [1] - Supply has consistently fallen short of expectations, resulting in a seller's market for thermal coal [1] - The supply-demand relationship in the thermal coal market continues to favor sellers, supporting ongoing price increases [1]

Group 1 - Coal stocks in Hong Kong continue to strengthen, with Qinfa (00866.HK) rising over 5% [1] - China Shenhua (01088.HK) increased by more than 4.5% [1] - Yanzhou Coal (01171.HK) saw an increase of nearly 2% [1] Group 2 - Other coal companies such as Mongolian Coking Coal (00975.HK) and China Coal Energy (01898.HK) also experienced gains of over 1% [1]

Company Overview - The Group is the sole fully integrated washed coking coal producer and exporter in Mongolia[13] - As of January 25, 2024, the Company became a 50% equity holder in EM, expecting first gold production from BKH mine in 2Q 2025[15] Coal Resources and Reserves - Total coal resources are 1,052 million tonnes, with 714 million tonnes above 300m and 338 million tonnes below 300m[14] - Total coal reserves are 630 million tonnes, including 601 million tonnes of coking coal and 29 million tonnes of thermal coal[14] - Total marketable coal reserves are 382 million tonnes, comprising 277 million tonnes of coking coal and 105 million tonnes of middling/thermal coal[14] Gold & Silver Resources and Reserves - Total gold resources are 1,192 Koz and total silver resources are 3,542 Koz[16] - Total gold reserves are 514 Koz and total silver reserves are 221 Koz[16] Industry Overview (China) - China's crude steel production is 1,019 million tonnes, a 1% increase, and coke production is 493 million tonnes, a 4% increase[20] - China's coking coal consumption is 592 million tonnes, and coking coal import is 103 million tonnes, a 61% increase[20, 21] Operational Performance - Washed coking coal products sales volume reached 6.7 million tonnes in 2023[28] - ROM coal production was 9.8 million tonnes in 2023, a 2.1x increase compared to 4.7 million tonnes in 2022[28] - Mongolian coal export reached 27.7 million tonnes in 2023, a 2.2x increase compared to 12.1 million tonnes in 2022[28] ASP & Cost Metrics - HCC ASP (average selling price) increased from $147.1/t in 2022 to $160.2/t in 2023[31] - Effective royalty rate decreased from 22% in 2022 to 16.5% in 2023[33] - HCC operating cash cost at DAP GM decreased from $98.6/t in 2022 to $77.4/t in 2023[36] Financial Performance - Revenue increased 1.9x from $546 million in 2022 to $1.03 billion in 2023[39] - EBITDA increased 3.8x from $134 million in 2022 to $509 million in 2023[39] - Profit increased 4.1x from $59 million in 2022 to $240 million in 2023[39] Balance Sheet - Debt to EBITDA ratio decreased from 2.79 in 2022 to 0.42 in 2023[45] - Debt to total asset ratio decreased from 20.5% in 2022 to 10.7% in 2023[45] - Debt to equity ratio decreased from 40.3% in 2022 to 18.3% in 2023[45] Sustainability Reporting (GHG Emissions) - Scope 1 direct emissions are 1.2 million tCO2e (3.8%), Scope 2 indirect emissions are 16.8 thousand tCO2e (0.1%), and Scope 3 indirect emissions are 29.5 million tCO2e (96.1%)[46] - Total emissions are 30.7 million tCO2e, with an emissions intensity of 2.11 tCO2e/ROMt[46]

Company Overview - Mongolian Mining Corporation (MMC) is the largest internationally listed private mining company in Mongolia, listed on the HKEx since 2010[11] - The company is diversifying its business by investing in gold, copper, and other non-ferrous metals[11] - As of January 25, 2024, MMC holds a 50% equity in EM, which owns the Bayan Khundii (BKH) gold mine[17] - As of March 11, 2025, MMC holds a 50.5% equity in Universal Copper LLC (UCC), an exploration company focused on copper and other non-ferrous metals[19] Operational Performance (Coking Coal) - ROM coal production increased from 146 million tonnes in 2023 to 163 million tonnes in 2024[58] - Total coal processing increased from 87 million tonnes in 2023 to 91 million tonnes in 2024[60] - Sales volume of washed coking coal products decreased from 98 million tonnes in 2023 to 86 million tonnes in 2024[62] BKH Gold Mine Project Update - The processing plant construction is 81% complete as of February 28, 2025, with full completion expected in Q2 2025[68] - Mining operations are expected to commence in Q2 2025, with a total life-of-mine (LOM) production of 476 Koz of recovered gold and 121 Koz of recovered silver[68] - Commercial production is expected to begin in Q3 2025, with the processing plant designed to process 650 Kt of ore per annum and produce an average of 74 Koz of gold in doré form per annum[69] Financial Overview - Revenue increased slightly from $10348 million in 2023 to $10399 million in 2024[77] - EBITDA decreased from $5090 million in 2023 to $4959 million in 2024[77] - Net profit increased from $1602 million in 2023 to $1684 million in 2024[77]

| 日期 | 回购股数（万股） | 回购最高价（港元） | 回购最低价（港元） | 回购金额（万港元） | | --- | --- | --- | --- | --- | | 2025.04.29 | 120.00 | 6.770 | 6.570 | 804.73 | | 2025.04.28 | 44.40 | 6.580 | 6.370 | 291.34 | | 2025.04.25 | 99.90 | 6.440 | 6.410 | 643.05 | | 2025.04.22 | 11.10 | 5.930 | 5.880 | 65.72 | | 2025.04.17 | 176.70 | 5.840 | 5.770 | 1029.67 | | 2025.04.16 | 23.70 | 5.680 | 5.590 | 134.14 | | 2025.04.15 | 5.10 | 5.510 | 5.480 | 28.06 | | 2025.04.10 | 198.60 | 5.370 | 5.200 | 1062.49 | | 2025.04.09 | 389.70 | 5.270 | 4.850 | ...

Company Overview - Mongolian Mining Corporation (MMC) is the largest producer and exporter of high-quality coking coal in Mongolia, operating the Ukhaa Khudag and Baruun Naran open-pit coal mines[9]. - MMC holds a 50% stake in Erdene Mongol LLC, which is developing the Bayan Khundii gold mine, expected to commence gold production in the second half of 2025[9]. - MMC's operational headquarters are located in Ulaanbaatar, Mongolia, with a registered office in the Cayman Islands[8]. Strategic Goals and Commitments - The company aims to produce high-quality products at the lowest cost through innovation and technology[10]. - MMC is committed to minimizing its operational impact on the environment and adheres to all regulatory environmental standards[10]. - The financial report indicates a significant focus on community development actions and building mutually beneficial relationships with local communities and government officials[10]. - MMC's strategic outlook for 2025 includes enhancing operational efficiency and expanding market presence[5]. - The company aims to maximize asset utilization and optimize business performance in the coal and energy sectors while exploring new opportunities for growth in the gold and metals division[45]. - The company is committed to maintaining its responsibilities towards safety, environmental protection, and social accountability in its operations[42]. Corporate Governance - The company emphasizes the importance of corporate governance as a key component of its organizational development[10]. - Gotov博士 appointed as Executive Director and Group CEO, with extensive experience in the MCS Group since 2004[17]. - Jambaljamts serves as Executive Director and Chairman of the Board, with over 20 years of experience in private and public sectors[18]. - Gombo has been with MCS Holding LLC since 2003, currently serving as Vice President and CFO, enhancing financial team capabilities[19]. - Ganbyamba appointed as Non-Executive Director in January 2022, previously held various financial roles within MCS Group[20]. - Jigjid serves as Independent Non-Executive Director, with a background in banking and economic policy, enhancing governance[21]. - Chuluundorj, an independent non-executive director, has been with the company since January 8, 2016, and is involved in various committees including the remuneration and audit committees[22]. - Chen, another independent non-executive director, has served since September 16, 2010, and has held multiple senior positions at Citigroup from 1980 to 2007[23]. Financial Performance - The company reported revenues exceeding $1 billion and adjusted EBITDA close to $500 million, with profits attributable to equity holders around $250 million in 2024[42]. - Total revenue for the year ended December 31, 2024, was $1,039.9 million, compared to $1,034.8 million for the year ended December 31, 2023, reflecting a slight increase[121]. - The total cost of revenue for the year ended December 31, 2024, was $628.2 million, up from $593.2 million in the previous year, indicating a year-over-year increase of approximately 5.0%[122]. - The company's gross profit for the year ended December 31, 2024, was approximately $411.7 million, compared to $441.6 million for the year ended December 31, 2023[133]. - The adjusted EBITDA for the reporting year was approximately $495.9 million, down from approximately $509.0 million in 2023[134]. Production and Operations - In 2024, the company extracted 16.3 million tons of raw coal, processed 15.3 million tons, and produced 8.4 million tons of washed coking coal products, delivering 7.9 million tons to customers[42]. - The total coal production for the group in 2024 is projected to be 16.3 million tons, with 12.7 million tons from the UHG mine and 3.6 million tons from the BN mine[105]. - The group processed a total of 15.4 million tons of raw coal in 2024, yielding 8.4 million tons of washed coking coal and 0.7 million tons of middling coal, with respective yield rates of 55% and 5%[108]. - The actual stripping ratio for the UHG mine was 4.7 cubic meters of overburden per ton of raw coal, while for the BN mine, it was 7.3 cubic meters per ton[105]. Market and Industry Trends - China's coal imports reached a historical high of 525 million tons in 2024, with coking coal imports at 120 million tons, where Mongolia accounted for approximately 47% of the coking coal market share[42]. - China's crude steel production decreased by 1.7% from 1,022.5 million tons in 2023 to 1,005.1 million tons in 2024, while maintaining a global market share of 53.4%[49]. - In 2024, China's coke consumption decreased by 2.4% to 459.1 million tons, while coke exports fell from 8.9 million tons in 2023 to 8.3 million tons[50]. - China's coking coal imports increased to a record 122.3 million tons in 2024, a 19.3% increase from 102.5 million tons in 2023[51]. Environmental and Safety Measures - The company recorded a total of 14.6 million hours worked in the coking coal business, with a lost time injury frequency of 0.69 per million hours worked, down from 0.8 in 2023[116]. - The company provided a total of 21,670 personal training sessions, amounting to 173,433 hours of occupational health and safety training in 2024[117]. - The company achieved a score of 96.2% in an external environmental management audit, up from 93.4% in 2023[118]. - The company identified 17 first-level risks that could lead to fatalities or permanent disabilities and implemented remedial measures, including additional training for all employees and contractors[116]. Capital and Investments - The company acquired a 50% stake in EM for USD 40 million, making EM a subsidiary as of January 25, 2024[158]. - The company agreed to sell a 20% stake in KEX for USD 88.8 million, retaining an 80% ownership post-transaction[159]. - The acquisition of a 50.5% stake in Universal Copper LLC was completed for USD 20.5 million, with UCC becoming a subsidiary on March 11, 2025[160]. - The total capital commitments amount to USD 82.1 million, significantly increasing from USD 21.3 million as of December 31, 2023[156]. Future Outlook - The company anticipates the BKH gold mine to produce an estimated annual gold output of up to 85,000 ounces, potentially generating over $200 million in revenue based on current gold prices[43]. - As of December 31, 2024, the BKH mine's construction is approximately 67.0% complete, with gold production expected to commence in the second half of 2025, targeting a total output of 476,000 ounces over the mine's lifespan[63]. - The World Gold Council forecasts that central bank net purchases may exceed 1,000 tons again in 2025, driven by economic uncertainty and demand for gold as a risk hedge[54].

Financial Performance - For the fiscal year ending December 31, 2024, Mongolian Mining Corporation generated revenue of approximately $1,039.9 million, a slight increase from $1,034.8 million in the previous year, representing a growth of 0.1%[3] - Adjusted EBITDA for the fiscal year was approximately $495.9 million, down from $509.0 million in the previous year, indicating a decrease of 2.4%[3] - Profit attributable to equity holders for the year was $242.0 million, compared to $239.7 million in the previous year, reflecting an increase of 0.9%[3] - Basic and diluted earnings per share for the year were 22.12 cents and 21.77 cents, respectively, compared to 21.95 cents in the previous year[3] - The total comprehensive income for the year was $240.9 million, slightly up from $240.6 million in the previous year, reflecting a marginal increase of 0.1%[7] - Pre-tax profit for 2024 was $336,203,000, slightly up from $334,922,000 in 2023, indicating a growth of approximately 0.4%[41] - The net cash generated from operating activities for the fiscal year ending December 31, 2024, was $223.5 million, a significant decrease of 53.6% from $481.9 million in 2023[160] - The actual tax expense for 2024 was $92,651,000, slightly lower than $94,820,000 in 2023, a decrease of about 2.3%[40] Assets and Liabilities - Total assets less current liabilities increased to $1,809.6 million from $1,575.0 million, showing a growth of 14.9%[10] - Non-current assets totaled $1,748.5 million, up from $1,588.5 million, indicating an increase of 10.1%[9] - Cash and cash equivalents decreased to $140.5 million from $175.8 million, a decline of 20.0%[9] - The group's total borrowings as of December 31, 2024, were $240.0 million, which included $220.0 million in senior notes maturing in 2026 and $20.0 million in bank loans[161] - The group's cash and cash equivalents decreased by $34.8 million to $140.5 million as of December 31, 2024, compared to $175.8 million at the beginning of the year[160] Costs and Expenses - The total cost of revenue for the fiscal year 2024 was $628,177 thousand, up from $593,180 thousand in 2023, indicating an increase of about 5.9%[35] - Employee costs increased to $60,981,000 in 2024 from $45,954,000 in 2023, representing a rise of about 32.8%[37] - Financial costs decreased to $37,349,000 in 2024 from $41,958,000 in 2023, a reduction of approximately 11.5%[39] - The group's gross profit for the year ending December 31, 2024, was approximately $411.7 million, down from $441.6 million in 2023[4] - General and administrative expenses for the year ending December 31, 2024, were approximately $46.6 million, down from $57.3 million in 2023[7] - The group's mining management costs for the year ending December 31, 2024, were $30.4 million, an increase from $27.2 million in 2023[10] Revenue Sources - In the fiscal year ending December 31, 2024, the total revenue generated from coal mining was $1,039,852 thousand, a slight increase from $1,034,821 thousand in 2023[33] - The revenue from hard coking coal decreased to $796,476 thousand in 2024 from $883,140 thousand in 2023, representing a decline of approximately 9.8%[33] - The company has identified two reportable segments: coal mining and gold mining, with operations in extraction, processing, transportation, and sales[34] Investments and Acquisitions - The company completed the acquisition of 50% equity in Erdene Mongol LLC, making it a subsidiary, and sold 20% equity in Khangad Exploration LLC, which remains a subsidiary[4] - The company issued a total of $180 million in 2026 senior notes, with an additional $40 million issued in December 2023, at a fixed annual interest rate of 12.50%[67] - The company acquired a 50% stake in EM for a total consideration of $40,000,000, making EM a subsidiary as of January 25, 2024[173] - The company purchased a 50.5% stake in Universal Copper LLC for $20,500,000, which will become a subsidiary on March 11, 2025[174] Market Conditions and Economic Outlook - China's crude steel production is projected to decrease by 1.7% to 1,005.1 million tons in 2024, while global production is expected to reach 1,882.6 million tons[79] - China's coke production is expected to decline by 0.7% to 489.3 million tons in 2024, with consumption dropping by 2.4% to 459.1 million tons[79] - China’s coking coal imports reached a record high of 122.3 million tons in 2024, a 19.3% increase from 102.5 million tons in 2023[80] - Mongolia is expected to maintain a dominant market share of 46.4% in coking coal imports, with a volume of 56.8 million tons, up 5.2% from 54.0 million tons in 2023[82] Environmental and Safety Performance - The group recorded a lost time injury frequency rate of 0.69 per million hours worked in 2024, down from 0.8 in 2023[129] - The environmental management external audit scored 96.2% in 2024, an improvement from 93.4% in 2023[132] - The group has identified 17 first-level risks that could lead to fatalities or permanent disabilities and has implemented remedial measures[131] - The group provided a total of 21,670 personal training sessions in occupational health, safety, and environment matters, totaling 173,433 hours in 2024[131] Future Projects and Developments - The BKH mine's processing plant construction is approximately 67% complete, with gold production expected to start in the second half of 2025, targeting an annual output of 74,000 ounces of gold[136] - The company has made significant progress in building non-processing facilities, including dormitories and laboratories, expected to be completed in the first half of 2025[136] - The company plans to continue mining activities and resource updates without including further exploration data until the end of 2024[93] Corporate Governance - The audit committee reviewed the company's annual performance for the year ending December 31, 2024[188] - The company has adopted corporate governance codes and confirmed compliance for the year ending December 31, 2024[184] - The board of directors includes both executive and non-executive members, ensuring a diverse governance structure[190]

Industry Performance - The company reported a year-on-year decrease of 8.3% in the performance of the Chinese steel, coke, and coking coal industry [13]. - In the first half of 2024, China's crude steel production decreased by 1.1% year-on-year to 530.6 million tons, while apparent domestic crude steel consumption fell by 4.5% to 471.9 million tons [14]. - China's coke production decreased by 0.8% to 241.8 million tons, with coke consumption increasing by 0.2% year-on-year [14]. - In the first half of 2024, China exported 53.4 million tons of steel, a 22.5% increase compared to 43.6 million tons in the same period of 2023 [14]. - Mongolia's coal imports to China increased by 32.3% to 29.5 million tons, solidifying Mongolia's position as the main source of coking coal imports, accounting for 51.5% of total imports [14]. Environmental Commitment - The company aims to leverage technology and innovation to produce high-quality products at the lowest cost [9]. - The company is committed to minimizing operational impacts on the environment and adhering to all regulatory environmental standards [9]. - Mongolian Mining Corporation aims to reduce coal business emissions by 8% by 2030 compared to 2023 levels [98]. - The company plans to implement ISO 14064 standards to verify 2023 baseline emissions and set mid-term targets by 2026 [98]. - The company is committed to achieving carbon neutrality by 2050 [98]. Corporate Governance and Community Engagement - The company continues to foster a corporate governance culture as a vital part of its organizational development [9]. - The company is focused on establishing mutually beneficial relationships with local communities and government officials [9]. - The company emphasizes transparency and contributes to social development through community development actions [9]. Mining Operations and Resources - The company operates the Ukhaa Khudag and Baruun Naran open-pit coal mines in the Umnugobi aimag of Mongolia [9]. - The company is the largest producer and exporter of high-quality washed hard coking coal in Mongolia [9]. - The company has completed approximately 30% of the total construction work at the Bayan Khundii (BKH) mine and expects to commence gold production in 2025, with an estimated total output of 476,000 ounces of gold over the mine's lifespan [18]. - The BKH mine is projected to have an average annual production of 74,000 ounces of gold with an average recovery rate of 92.7% [18]. - The company has been granted a mining license for the Ukhaa Khudag (UHG) coal deposit, covering an area of 2,960 hectares, effective from August 29, 2006, for a period of 30 years [19]. Financial Performance - Total revenue for the six months ended June 30, 2024, was $541.1 million, compared to $516.7 million for the same period in 2023, representing an increase of approximately 4.3% [61]. - The group recorded approximately 7.2 million man-hours worked in the coking coal business, an increase from 5.9 million man-hours in the same period of 2023 [58]. - The profit attributable to equity holders for the six months ending June 30, 2024, was approximately $133.0 million, down from $136.6 million in the same period of 2023 [68]. - The net cash generated from operating activities for the six months ending June 30, 2024, was $159.6 million, compared to $247.8 million in the first half of 2023 [68]. - The company's equity attributable to equity holders increased to $1,220,688 thousand from $1,114,837 thousand, reflecting a growth of 9.5% [111]. Resource Estimation and Compliance - The total coal resources estimated for UHG as of December 31, 2023, amount to 379 million tons, with a breakdown of 328 million tons above 300 meters and 87 million tons below 300 meters [23]. - The coal resource estimates are considered to accurately reflect the situation as of December 31, 2023, following the principles and guidelines of the Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves [25]. - The internal peer review of the updated coal resource estimates for BN and THG was conducted by the Group's Coal and Energy Department Operations Director, confirming compliance with JORC standards [28]. - The updated JORC coal resource statement for UHG as of January 1, 2024, indicates confirmed coal reserves of 325 million tons of coking coal and 19 million tons of thermal coal, totaling 344 million tons [32]. Safety and Training - The group conducted 14,154 personal training sessions totaling 75,080 man-hours in occupational health, safety, and environment training during the first half of 2024 [58]. - The lost time injury frequency rate was 0.97 incidents per million man-hours, down from 1.36 incidents per million man-hours in the same period of 2023 [58]. - The company continues to utilize online safety training for all employees and contractors, enhancing training participation [72]. Shareholder Information - As of June 30, 2024, the total number of issued shares is 1,047,756,286 [82]. - Odjargal Jambaljamts holds 323,492,188 shares, representing approximately 30.87% of the total issued share capital [81]. - The company has complied with all applicable provisions of the corporate governance code as of June 30, 2024 [79]. - The company did not declare any dividends for the six months ending June 30, 2024, consistent with the previous year [75]. Strategic Partnerships and Future Plans - The company plans to explore potential strategic partnerships and joint ventures to expand and diversify its business, primarily targeting investment opportunities in Mongolia [18]. - The company aims to improve operational efficiency and reduce costs through strategic partnerships and technological advancements in mining operations [61].