Summary of Conference Call on Coal Industry Industry Overview - The focus of the conference call was on the coal industry, particularly the recent trends in coal prices and inventory levels [1][2][5]. Key Points and Arguments 1. **Coal Price Trends**: - Coal prices have started to rise, with Qinhuangdao's 5500 kcal coal price increasing by 5 yuan from 691 to 696 yuan. High-calorie coal from Yulin saw a significant increase of over 20 yuan, nearly 4% [1][2]. - Despite the price increase, there remains a notable price inversion between pit and port prices, with Shanxi coal prices around 750 yuan and Inner Mongolia near 800 yuan, compared to port prices below 700 yuan [2]. 2. **Inventory Levels**: - There has been a significant decrease in coal inventory, with Qinhuangdao's inventory down by 2% and the overall inventory at nine northern ports down by 7%, reaching levels lower than in 2023 and 2025 [2][5]. - The current inventory levels indicate a strong correlation with supply and demand dynamics, suggesting a potential for continued price stability [3][5]. 3. **Market Dynamics**: - The market is currently in the latter half of the peak season, with traders expected to remain active in shipping despite the price inversion, anticipating further price increases [2][3]. - The expectation is for minor fluctuations in coal prices, potentially reaching 700-750 yuan, but significant price surges are not anticipated [3]. 4. **International Market Influences**: - International coal prices are also on the rise, with Australian and Indonesian coal prices increasing by approximately 1%. The Australian price is around 705 yuan, while Indonesian coal is priced above 720 yuan [6]. - Indonesia is expected to reduce its coal export quotas significantly, from 790 million tons last year to an anticipated 600 million tons, raising concerns about supply constraints [6][7]. 5. **Government Policies**: - The Indonesian government is implementing policies to control coal prices and maintain tax revenues, which may lead to reduced production and tighter supply [7][9]. - Domestic policies in China are also focused on stabilizing coal supply, with no significant increases in production expected during the 15th Five-Year Plan period [19][20]. 6. **Investment Opportunities**: - The coal sector is viewed as a stable investment option amidst market volatility, with companies like Yancoal and China Shenhua being highlighted for their dividend yields and resilience [22][23]. - The focus is on selecting companies that offer both safety and growth potential, particularly those with strong fundamentals and dividend policies [23][24]. 7. **Future Outlook**: - The overall sentiment is cautiously optimistic, with expectations for a gradual recovery in coal prices and continued interest from investors seeking stable assets [26]. - The coal market is expected to remain tight, with both domestic and international factors contributing to a favorable outlook for coal investments in the near term [26]. Additional Important Content - The call emphasized the importance of coal as a stable asset class in a volatile market, with a focus on the need for investors to seek out reliable investment opportunities [14][22]. - The discussion included insights into the broader energy market, noting the impact of rising oil and gas prices on coal demand and pricing dynamics [11][15]. This summary encapsulates the key insights and discussions from the conference call regarding the coal industry, highlighting price trends, inventory levels, market dynamics, and investment opportunities.

Group 1: Core Business and Performance - The coal business serves as the company's cornerstone, with a stable position and focus on quality improvement and efficiency [1] - The company is the largest producer and exporter of washed coal in Mongolia, with a peak raw coal production of 16.34 million tons expected in 2024 [1] - The company has increased the proportion of sales through MSE auctions to 55%, effectively capturing sales premiums [1] - Historical performance has been heavily reliant on a single coal product, leading to significant cyclicality and past losses during downturns [1] Group 2: Diversification and Growth Opportunities - The company is actively diversifying into gold and copper to mitigate risks associated with coal price fluctuations [1][2] - The BKH gold mine is expected to start commercial production in September 2025, with a projected full production of 85,000 ounces by 2027 and an anticipated net profit contribution of over $100 million in 2026 [2] - The acquisition of a 50.5% stake in UCC provides access to the White Hill copper-gold project, with resources totaling approximately 185,000 tons of copper and 5,200 ounces of gold [2] Group 3: Political and Economic Environment - Mongolia's "resource nationalism" poses a core political risk for the mining industry, with the government increasingly focused on controlling mineral resources [3] - The mining sector significantly contributes to Mongolia's GDP growth, with mining and transportation expected to contribute 2.7% to GDP growth in 2024 [3] - Recent legislative changes allow the government to acquire up to 50% of strategic mineral deposits without compensation, which could impact foreign investments [3] Group 4: Investment Outlook - The company is positioned as a leading player in Mongolia's coking coal sector, with high-quality resources and geographical advantages near the Chinese market [3] - The diversification strategy, including the operationalization of the BKH gold mine, is expected to transform the company into a comprehensive mining entity in Mongolia [3] - Projected net profits for the company are estimated at $93 million, $263 million, and $377 million for the years 2025 to 2027, respectively, with a PE ratio of less than 7 for 2026 [3]

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][5]. Core Insights - The company is the largest coal producer and exporter in Mongolia, with a strong focus on diversification into gold and copper mining to mitigate risks associated with its coal business [4][5]. - The coal business remains the company's cornerstone, with a peak production of 16.34 million tons expected in 2024, while the newly developed gold business is anticipated to contribute over $100 million in net profit in 2026 [4][5]. - The company has a robust geographical advantage due to its proximity to the Chinese market, which supports its coal sales [5][24]. Summary by Relevant Sections Company Overview - The company is the first Mongolian enterprise listed on international capital markets and operates in the Tavan Tolgoi coalfield, managing two open-pit coal mines, UHG and BN [13][15]. - The company aims to enhance shareholder value while contributing to Mongolia's development through modern technology and responsible mining practices [14][13]. Coal Business - The company operates in a world-class coalfield, producing high-quality hard coking coal, with significant reserves of 340 million tons at UHG and 272 million tons at BN [24][25]. - In 2024, the company expects to achieve a peak coal production of 16.34 million tons, with a significant increase in sales through the Mongolian Stock Exchange (MSE) [39][44]. - The average production cost of coal has increased from $31.4 per ton in 2017 to $41.1 per ton in 2024, reflecting a compound annual growth rate of 4% [50][51]. Gold Business - The BKH gold mine commenced commercial production in September 2025, with expectations to reach full production of 85,000 ounces by 2027, contributing significantly to the company's revenue [4][5]. - The gold business is viewed as a second growth curve for the company, with low all-in sustaining costs (AISC) enhancing profitability [5][41]. Copper Business - The acquisition of a 50.5% stake in UCC provides access to the White Hill copper-gold project, which is expected to further diversify the company's revenue streams [4][5]. Political and Economic Context - The company operates in a politically sensitive environment characterized by "resource nationalism," which poses risks but is manageable due to the company's established position and diversification strategy [4][5]. - The mining sector significantly contributes to Mongolia's GDP, with mining and transportation expected to account for a 2.7% increase in GDP in 2024 [4][5]. Financial Projections - The company forecasts net profits of $0.93 million, $2.63 million, and $3.77 million for the years 2025, 2026, and 2027, respectively, with a PE ratio of less than 7 for 2026 [5][6].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [5]. Core Views - The company is positioned as the leading coal producer in Mongolia, with a strong geographical advantage near the Chinese market. It is diversifying beyond coal into gold and copper, which are expected to contribute significantly to future profits [5][13]. - The gold business, initiated with the BKH gold mine, is projected to generate over $100 million in net profit by 2026, marking a substantial second growth curve for the company [5][6]. - The copper business, through the acquisition of UCC, is seen as a long-term growth opportunity, with plans for feasibility studies on the White Hill copper deposit [5][6]. Summary by Sections Company Overview - The company is the largest private mining enterprise in Mongolia, primarily engaged in coal production and export, with ongoing diversification into gold and copper [13]. - It was the first Mongolian company to list on the international capital market, with significant assets located in the Tavan Tolgoi coalfield [13][15]. Coal Business - The company operates two major coal mines, UHG and BN, with substantial coal reserves of 340 million tons and 272 million tons respectively, primarily producing high-quality hard coking coal [24][25]. - In 2024, the company achieved a peak raw coal production of 16.34 million tons, with a significant increase in sales through competitive bidding [39][41]. - The average selling price of coal is influenced by domestic market trends, with recent prices at $106 and $121 per ton for 2023 and 2024 respectively [44]. Gold Business - The BKH gold mine commenced commercial production in September 2025, with expectations to reach full production of 85,000 ounces by 2027 [5][6]. - The low All-In Sustaining Cost (AISC) of the gold business positions it as a high-margin contributor to the company's overall profitability [5]. Copper Business - The acquisition of a 50.5% stake in UCC provides access to the White Hill copper-gold project, which contains approximately 185,000 tons of copper and 52,000 ounces of gold [5][6]. - The company plans to conduct feasibility studies on the copper deposit to further reduce reliance on coal [5]. Financial Projections - The company forecasts net profits of $0.93 million, $2.63 million, and $3.77 million for the years 2025, 2026, and 2027 respectively, with a PE ratio of less than 7 for 2026 [5][6].

Group 1: Mongolian Coal Production - The company is the largest producer and exporter of washed coking coal products in Mongolia, operating through its wholly-owned subsidiary Energy Resources LLC (ER) and its controlling subsidiary Khangad Exploration LLC (KEX) [1] - In 2025, the company sold a total of 8.2213 million tons of washed coking coal, representing a 4% increase from 7.8821 million tons sold in 2024 [1] - The product mix for 2025 includes 4.9205 million tons of hard coking coal, 0.4525 million tons of semi-soft coking coal, and 2.8484 million tons of medium ash semi-hard coking coal, with respective shares of 59%, 6%, and 35% of total sales [1] Group 2: Gold and Silver Production - The company holds a 50% interest in Erdene Mongol LLC (EM), which operates the Bayan Khundii (BKH) gold mine in Mongolia, and a 50.5% interest in Universal Copper LLC (UCC), which is developing the White Hill (WTH) copper, silver, and gold mine [2] - As of December 31, 2025, EM sold 7,434 ounces of gold and 2,634 ounces of silver produced from the BKH mine, with a weighted average gold price of $4,153.25 per ounce and a silver price of $53.14 per ounce [2] - The BKH processing plant has a nameplate ore feed capacity of 650,000 tons per year, utilizing various processes including cyanide leaching and electrolysis to produce unrefined gold and silver ingots [2] Group 3: Mining Development Activities - The company has conducted geological and hydrogeological exploration drilling, modeling, extensive sampling, and metallurgical testing to gather necessary data for technical reports, including updated JORC resource and reserve statements [3] - A feasibility study has been completed to advance the development of the WTH copper, silver, and gold mine covered by three special mining licenses held by UCC [3]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容所產生或因依 賴該等內容而引致的任何損失承擔任何責任。 MONGOLIAN MINING CORPORATION （於開曼群島註冊成立的有限責任公司） （股份代號：975） 最新營運資料 截至二零二五年十二月三十一日止季度 Mongolian Mining Corporation（「本公司」，連同其附屬公司，統稱「本集團」）董事 會（「董事會」）謹此公佈截至二零二五年十二月三十一日止季度的未經審核最新營 運資料。截至二零二四年十二月三十一日止季度及截至二零二五年九月三十日止 季度的比較數字亦於本公告披露（如適用）。 本公司為業務集中於並位於蒙古國的最大的國際上市私營礦業公司。本集團整合 了一個多元化的業務組合，在蒙古國南部及西部地區開發及運營焦（冶金）煤、黃 金、白銀、銅及其他有色金屬礦業資產。 焦（冶金）煤營運 本集團為蒙古國內最大的洗選焦煤產品生產商及出口商。本集團全資附屬公司 Energy Resources LLC（「ER」）經營Ukhaa Khud ...

Core Viewpoint - The coal stocks in Hong Kong are experiencing significant activity, with notable price increases for companies like Jinma Energy and China Shenhua, driven by rising futures prices for coking coal and coke [1] Group 1: Market Activity - On January 8, coal stocks in Hong Kong were active, with Jinma Energy rising nearly 8% and China Shenhua increasing over 2%, marking a three-day upward trend [1] - Other companies such as South Gobi, Yancoal Australia, and Yanzhou Coal also saw price increases [1] Group 2: Price Trends and Market Analysis - Multiple contracts for coking coal and coke futures hit the daily limit up, indicating strong market demand [1] - Domestic coking enterprises have held market analysis meetings to stabilize prices and have ceased shipments in response to further price reductions [1] Group 3: Future Outlook - Analysts predict that coal stocks will face downward pressure due to falling coal prices starting in 2025, but the pessimistic outlook has significantly eased following the release of Document No. 108 [1] - The trend of reducing competition remains unchanged, with expectations for improved performance in Q4; if prices remain high, there is potential for earnings recovery in 2026 [1] - The decline in stock prices has enhanced dividend value, suggesting opportunities for low-cost acquisitions [1]

截至月份: 2025年12月31日 狀態: 新提交 FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 致：香港交易及結算所有限公司 公司名稱: Mongolian Mining Corporation (於開曼群島註冊成立的有限責任公司) 呈交日期: 2026年1月7日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00975 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,500,000,000 | USD | | 0.1 USD | | 150,000,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | | 1,500,000,000 | USD | | 0.1 US ...

Group 1 - The Hong Kong stock market saw a strong performance in coal stocks, with Feishang Anthracite rising by 33% [1] - Shougang Resources and Mongol Mining both increased by over 5% [1] - Companies such as Power Development, Yida Commodity, and Yanzhou Coal Mining rose by more than 3% [1] - China Coal Energy, China Qinfa, and South Gobi also experienced gains of over 2% [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容所產生或因依 賴該等內容而引致的任何損失承擔任何責任。 除該公告所提供的資料外，本公司謹此提供有關以下各項的補充資料：(i)釐定建 議年度上限的基準；及(ii)澄清與服務協議有關的內部控制程序及其與本公司內部 控制措施的一致性。 釐定建議年度上限的基準 誠如該公告所披露，建議年度上限乃經考慮：(i)辦公室及營地配套服務的有關 過往交易金額；(ii)僱員人數的預計增加；(iii) USS所提交的標書；(iv)通脹率加 劇、匯率上升及將交付至場地的材料成本增加；及(v)潛在的其他成本費用，並經 參考內部預計所需服務量後釐定。 服務協議項下的建議年度上限較過往的年度上限大幅增加，主要由於以下原因。 MONGOLIAN MINING CORPORATION （於開曼群島註冊成立的有限責任公司） （股份代號：975） 有關服務協議之持續關連交易之補充公告 茲提述本公司日期為二零二五年十二月二十二日的公告（「該公告」），內容有關 Energy Resources與USS ...