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].

Financial Performance - For the six months ended June 30, 2024, total revenue was approximately $541.1 million, compared to $516.7 million for the same period in 2023, representing an increase of 4.3%[2] - Gross profit for the same period was approximately $223.8 million, slightly down from $225.1 million in the previous year, indicating a decrease of 0.6%[4] - Profit attributable to equity holders for the six months was approximately $133.0 million, compared to $136.5 million in the same period last year, reflecting a decrease of 2.6%[2] - Basic and diluted earnings per share were 12.05 cents and 11.85 cents respectively, down from 13.11 cents in the previous year[4] - Pre-tax profit for the six months ended June 30, 2024, was $185,208,000, a decrease of 2.2% from $190,576,000 in 2023[24] - Basic earnings per share for the six months ended June 30, 2024, was $125,884,000, compared to $136,635,000 for the same period in 2023[26] - The adjusted EBITDA for the first half of 2024 was approximately $270.1 million, an increase from $258.0 million in the first half of 2023[97] - The income tax expense for the first half of 2024 was about $52.3 million, down from $54.1 million in the same period of 2023[101] Assets and Liabilities - Total non-current assets as of June 30, 2024, amounted to $1,703.6 million, an increase from $1,588.5 million as of December 31, 2023[8] - Current assets totaled $530.2 million, up from $419.9 million at the end of 2023, primarily driven by an increase in cash and cash equivalents[9] - Total liabilities decreased slightly to $422.9 million from $433.4 million at the end of 2023[10] - The net asset value increased to $1,402.5 million from $1,169.9 million at the end of 2023, indicating a significant growth in equity[12] Revenue Segments - For the six months ended June 30, 2024, coal mining segment revenue was $437,887,000, a decrease of 2.9% from $450,216,000 in the same period of 2023[17] - Gold mining segment did not generate any revenue for the six months ended June 30, 2024, compared to $541,129,000 in the same period of 2023[17] Costs and Expenses - Total revenue cost for the six months ended June 30, 2024, was $317,300,000, an increase of 8.8% from $291,597,000 in 2023[19] - General and administrative expenses rose to approximately $23.2 million in the first half of 2024, compared to $14.0 million in the same period of 2023[99] - The unit extraction cost for raw coal increased to $19.2 per ton in the first half of 2024, compared to $17.5 per ton in the same period of 2023, primarily due to increased depreciation and amortization costs[92] - Processing costs for the first half of 2024 were approximately $30.8 million, compared to $29.5 million in the same period of 2023[93] - The processing cost for the first half of 2024 was approximately $9.9 million, an increase from $8.3 million in the same period of 2023[94] - Logistics costs for the reporting period amounted to $7.7 million, up from $6.0 million in the first half of 2023, primarily due to increased sales volume[95] - Total transportation costs reached $65.4 million in the first half of 2024, compared to $41.8 million in the same period of 2023, driven by higher coal sales[95] Cash Flow - For the six months ended June 30, 2024, the net cash generated from operating activities was $159.6 million, compared to $247.8 million for the same period in 2023, representing a decrease of approximately 35.4%[102] - The net cash used in investing activities was $94.4 million, which included $54.6 million related to deferred stripping activities and $47.6 million for the acquisition of property, plant, and equipment[102] - The net cash generated from financing activities was $40.2 million, which included $20.0 million used for the redemption of perpetual notes and $88.8 million from the sale of a subsidiary's shares[103] Acquisitions and Investments - The company completed the acquisition of 50% equity in Erdene Mongol LLC, making it a subsidiary, and 20% equity in KEX LLC during the reporting period[2] - The company completed the acquisition of a 50% stake in EM for a total consideration of $40.0 million, making EM a subsidiary as of January 25, 2024[112] - The company agreed to sell a 20% stake in KEX for $88,810,000, resulting in ownership of 80% by the company and 20% by the buyer post-transaction[113] Employee and Training - As of June 30, 2024, the total number of employees increased to 2,559 from 2,285 a year earlier, reflecting a growth of approximately 11.9%[115] - Employee costs for the six months ending June 30, 2024, amounted to $29.4 million, up from $20.3 million for the same period in 2023, representing an increase of 45.1%[116] - The company has adopted a comprehensive training program, with 18,671 employees in coal operations and 4,365 in gold and metal operations participating in various professional training[116] - The company continues to emphasize internal training, with a focus on occupational health and safety training for all employees[116] Compliance and Governance - The audit committee reviewed the financial reports and confirmed compliance with applicable accounting standards and regulations[120] - The company has maintained compliance with corporate governance codes throughout the reporting period[119] - The mid-term financial results were reviewed by an independent auditor, ensuring transparency and adherence to standards[120] Market and Economic Conditions - In the first half of 2023, China's crude steel production was 530.6 million tons, a decrease of 1.1% year-on-year[36] - China's apparent consumption of crude steel is projected to decline by 4.5% from 494.1 million tons in the first half of 2023 to 471.9 million tons in the first half of 2024[36] - In the first half of 2024, China's coke production decreased by 0.8% to 241.8 million tons, while coke consumption increased by 0.2% to 237.1 million tons[36] - China's coking coal imports surged by 25.9% to 57.4 million tons in the first half of 2024, compared to 45.6 million tons in the same period of 2023[36] Resource Estimates and Exploration - The latest coal resource estimate for Ukhaa Khudag (UHG) as of December 31, 2023, includes a total coal resource of 458 million tons, with 30 million tons classified as measured and 65 million tons as inferred[46] - A total of 21,957 meters of drilling was conducted across 108 drill holes in the first half of 2024, resulting in the collection and laboratory analysis of 7,968 samples[45] - The BN coal deposit has a total of 135 exploration drill holes with a cumulative drilling of 36,875 meters, including 16,102 meters of HQ-3 drilling[48] - The total number of individual analysis samples collected and analyzed for UHG is 43,656[45] - The coal resource classification for UHG includes 285 million tons measured, 173 million tons indicated, and 65 million tons inferred[46] Health and Safety - The company recorded a lost time injury frequency rate of 0.97 per million hours worked, down from 1.36 in the same period last year[82] - The total recordable injury frequency rate was 2.23 per million hours worked, compared to 3.05 in the same period last year[82] - The company has implemented an integrated management system compliant with ISO 45001:2018 and passed a recent audit by AFNOR Group[83] - No occupational diseases or environmental incidents were recorded during the reporting period[83]

Company Overview - Mongolian Mining Corporation is the largest producer and exporter of high-quality washed hard coking coal in Mongolia[4]. - The company operates two open-pit coal mines: Ukhaa Khudag (UHG) and Baruun Naran (BN) located in the Umnugobi province[4]. - The company has a diversified group structure with subsidiaries in various countries, including Hong Kong, Luxembourg, and Mongolia[12]. Sustainability and Environmental Commitment - Mongolian Mining Corporation emphasizes environmental sustainability and compliance with all environmental standards[8]. - The company is dedicated to minimizing its operational impact on the environment through proactive measures[8]. - The company plans to enhance its sustainability initiatives, with a target of reducing carbon emissions by 40% by 2025[17]. - The company is committed to fulfilling its responsibilities towards safety, environment, and business operations in society[33]. - The company aims to refine its sustainability goals to align with the United Nations Sustainable Development Goals, enhancing its contribution to global objectives[173]. Financial Performance - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[17]. - The company's revenue and adjusted EBITDA reached new highs of $1.03 billion and $509 million, respectively[33]. - The profit attributable to equity holders was $240 million, representing an increase of over four times compared to 2022[33]. - The company sold approximately 9.8 million tons of coal products in 2023, generating a record revenue of $1,034.8 million, compared to $546.2 million in 2022, representing an increase of 89%[92]. - The adjusted EBITDA for the year ended December 31, 2023, was approximately $509.0 million, up from $133.8 million for the year ended December 31, 2022[107]. Market Expansion and Growth Strategy - The company aims to enhance corporate governance as a cornerstone of its management and operations[8]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share within the next two years[17]. - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative technologies[17]. - User data showed a 25% increase in active users, reaching 5 million by the end of the year[17]. Governance and Management - The board of directors includes experienced members, with Odjargal Jambaljamts serving as the executive director and chairman[9]. - Chuluundorj博士于2016年1月8日被任命为独立非执行董事，并担任多个委员会的成员[22]. - 陈子政于2010年9月16日被任命为独立非执行董事，并担任审计委员会主席[24]. Operational Efficiency and Production - Total coal product sales of the company reached 9.8 million tons, an increase of 109% compared to 4.7 million tons in the previous year[33]. - Total raw coal production for 2023 reached 14.6 million tons, with UHG contributing 12.1 million tons and BN contributing 2.5 million tons[68]. - The group processed a total of 14.1 million tons of raw coking coal in 2023, yielding 6.7 million tons of washed coking coal and 2.0 million tons of middling coal[76]. Employee and Training Initiatives - The company provided a total of 20,115 individual training sessions, amounting to 84,796 hours, to enhance occupational health and safety awareness among employees and contractors[83]. - As of December 31, 2023, the total number of employees in the group increased to 2,372 from 1,979 in the previous year, representing an increase of approximately 19.9%[134]. - Employee costs for the year ended December 31, 2023, amounted to $46.0 million, up from $30.2 million in 2022, indicating a year-over-year increase of approximately 52.5%[135]. Safety and Compliance - The lost time injury frequency rate for 2023 was reported at 0.80 per million hours worked, indicating a slight increase from 0.43 in 2022[181]. - The total recordable injury frequency rate for 2023 was 2.55 per million hours worked, showing a slight increase from 1.59 in 2022[187]. - The environmental management compliance score was 93.4% in 2023, down from 96.5% in 2022, indicating a need for improvement in environmental practices[84]. Coal Resource and Exploration - Total coal resources as of December 31, 2023, amount to 458 million tons, with 488 million tons classified as both proved and probable resources[51]. - The company conducted a total of 1,645 individual drill holes, totaling 208,211 meters, including 116,709 meters of HQ-3 drilling[52]. - The updated coal resource statement for BN and THG reflects the consumption from mining activities conducted from January 1, 2023, to December 31, 2023[53]. Emissions and Environmental Impact - Total greenhouse gas emissions amounted to 30,730,018 tons of CO2 equivalent, with an intensity of 2.11 tons of CO2 equivalent per ton of raw coal[176]. - The company has updated its greenhouse gas emission calculation methods and conducted third-party verification to ensure data accuracy for future comparisons[191]. - The emissions report for 2023 serves as a baseline year, marking the highest production, processing, and sales volume since operations began in 2009[199].

Financial Performance - For the year ended December 31, 2023, Mongolian Mining Corporation reported record revenue of approximately $1,034.8 million, an increase of 89.5% compared to $546.2 million for the year ended December 31, 2022[2]. - Adjusted EBITDA for the year ended December 31, 2023, was approximately $509.0 million, representing a significant increase of 280.4% from $133.8 million for the year ended December 31, 2022[2]. - Profit attributable to equity holders of the company for the year ended December 31, 2023, was $239.7 million, compared to $59.2 million for the year ended December 31, 2022[2]. - Basic and diluted earnings per share for the year ended December 31, 2023, were 21.95 cents, a substantial increase from 5.68 cents for the year ended December 31, 2022[3]. - Total comprehensive income for the year ended December 31, 2023, was $240.6 million, compared to $37.2 million for the year ended December 31, 2022[5]. - The company's gross profit surged to approximately $441.6 million in 2023, a 364.4% increase from $95.1 million in 2022, driven by higher sales volume and average selling prices[116]. Assets and Liabilities - Total non-current assets as of December 31, 2023, amounted to $1,588.5 million, compared to $1,560.9 million as of December 31, 2022[6]. - Current assets totaled $419.9 million as of December 31, 2023, up from $259.6 million as of December 31, 2022[7]. - The company's total equity attributable to equity holders increased to $1,114.8 million as of December 31, 2023, from $872.6 million as of December 31, 2022[8]. - Non-current liabilities decreased to $405.1 million as of December 31, 2023, from $565.1 million as of December 31, 2022[9]. - As of December 31, 2023, the group recorded a net current liability of $13,529,000[13]. Revenue Sources - The revenue from washed hard coking coal was $883,140,000 in 2023, compared to $508,355,000 in 2022, reflecting a growth of about 73.7%[27]. - The revenue from agency sales arrangements amounted to approximately $120,811,000 in 2023, up from $43,535,000 in 2022, indicating a growth of around 177%[28]. - The group's revenue for the year ended December 31, 2023, was $1,034,821,000, a significant increase from $546,248,000 in 2022, representing an increase of approximately 89%[26]. Costs and Expenses - The cost of revenue for the year 2023 was $593,180,000, compared to $451,131,000 in 2022, which shows an increase of approximately 31.5%[29]. - Employee costs increased to $45,954,000 in 2023 from $30,216,000 in 2022, reflecting a significant rise in salaries and benefits[32]. - General and administrative expenses for the year ended December 31, 2023, were approximately $57.3 million, an increase of $24.1 million from $24.8 million in 2022[119]. - Financial costs for 2023 amounted to $41,958,000, a decrease from $47,081,000 in 2022[31]. - The effective tax expense for 2023 was $94,820,000, compared to a tax benefit of $(4,183,000) in 2022[39]. Cash Flow and Financing - Cash generated from operating activities for the year ended December 31, 2023, was approximately $481.9 million, compared to $233.8 million in 2022[122]. - The capital debt ratio as of December 31, 2023, was 10.7%, a decrease from 20.5% as of December 31, 2022[123]. - The company issued $180 million of 2026 senior notes and an additional $40 million in December 2023, with a fixed interest rate of 12.50%[65]. - As of December 31, 2023, the outstanding principal amount of the 2026 senior notes was $220.0 million, down from $376.4 million for the 2024 senior notes in 2022[124]. Market and Industry Trends - The total steel production in China remained stable at 1,019 million tons in 2023, consistent with the previous year[72]. - China's steel exports surged by 34.1% year-on-year to 90.3 million tons in 2023, contributing to high production levels[72]. - The company anticipates a further decline in steel demand by 1.7% in 2024 following a 3.3% decrease in 2023[72]. - In 2023, China's coking coal imports reached a record high of 102.5 million tons, a 60.7% increase from 63.8 million tons in 2022[73]. - Coking coal imports from Mongolia grew by 110.9% to 54.0 million tons, accounting for 52.7% of China's total coking coal imports[74]. Mining Operations - The total raw coal production for 2023 was 14.6 million tons, with 12.1 million tons from the UHG mine and 2.5 million tons from the BN mine[94]. - The actual stripping ratio for the UHG mine was 4.5 cubic meters per ton of raw coal, while for the BN mine it was 8.2 cubic meters per ton of raw coal[94]. - The group processed a total of 14.1 million tons of raw coking coal in 2023, with 11.9 million tons from UHG and 2.2 million tons from BN[96]. - The coal processing and washing plant operated at an average rate close to 15.0 million tons per year, producing 6.7 million tons of washed coking coal and 2.0 million tons of middling coal[96]. Compliance and Governance - The company confirmed compliance with the corporate governance code during the year ended December 31, 2023[139]. - The financial data for the year ended December 31, 2023, has been reviewed and confirmed by the company's auditors, KPMG[140]. - The audit committee, chaired by Mr. Chen Zizheng, reviewed the company's full-year performance for the year ending December 31, 2023[142].

Economic Performance - In the first half of 2023, China's GDP grew by 5.5% compared to the same period last year[16]. - China's crude steel production increased to 535.6 million tons in the first half of 2023, a slight increase of 1.3% year-on-year[16]. - China's coke production rose by 1.8% to 243.8 million tons in the first half of 2023, with consumption increasing by 2.4% to 236.6 million tons[16]. - China's coking coal consumption reached 291.6 million tons, a year-on-year increase of 4.8%[16]. - Coking coal imports to China surged to 45.6 million tons in the first half of 2023, a significant increase of 74.7% year-on-year[16]. - Mongolia exported 29.5 million tons of coal to China in the first half of 2023, compared to 8.1 million tons in the same period last year[16]. - Coking coal imports from Mongolia to China reached a record high of 22.3 million tons, a year-on-year increase of 197.3%[16]. Company Operations and Strategy - The company aims to leverage modern technology and innovation to produce high-quality products at the lowest cost[8]. - The company is committed to minimizing its operational impact on the environment and adheres to all regulatory environmental standards[8]. - The company focuses on building long-term relationships with customers and suppliers to enhance mutual benefits[8]. - The UHG mining license covers an area of 2,960 hectares and is valid for 30 years, with two possible extensions of 20 years each[20]. - The company has conducted extensive exploration activities, including 1,645 drill holes and 208,211 meters drilled, to support resource estimation[20]. - The company plans to continue exploration activities to further enhance resource estimates and improve the geological model accuracy[28]. - The company emphasizes the importance of adhering to the Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC) in its reporting practices[28]. Resource and Production Estimates - As of December 31, 2022, the total coal resources at UHG are estimated at 567 million tons, including 499 million tons of proven and probable reserves[22]. - The latest coal resource estimates reflect a higher confidence level, with previously unclassified and inferred resources moved to the proven category[20]. - The updated JORC (2012) coal reserves for the UHG mine are 346 million tons of coking coal and 19 million tons of thermal coal, totaling 365 million tons[30]. - The BN mine's JORC (2012) coal reserves are 269 million tons of coking coal and 11 million tons of thermal coal, totaling 280 million tons[34]. - Total raw coal production for the first half of 2023 was 8.0 million tons, with 6.7 million tons from the UHG mine and 1.3 million tons from the BN mine[35]. - The group processed a total of 6.8 million tons of coking coal in the first half of 2023, achieving a yield of 3.0 million tons of washed coking coal and 1.2 million tons of middling coal[38]. Financial Performance - The company sold approximately 4.9 million tons of coal products in the six months ended June 30, 2023, generating total revenue of approximately $516.7 million, a 385.0% increase compared to $106.5 million from 0.9 million tons sold in the same period of 2022[48]. - The average selling price of hard coking coal for the first half of 2023 was $161.8 per ton, up from $141.3 per ton in the first half of 2022[48]. - The group's gross profit for the six months ended June 30, 2023, was approximately $225.1 million, a substantial improvement from a gross loss of $19.9 million in the same period of 2022[58]. - Adjusted EBITDA for the reporting period was approximately $258.0 million, compared to an adjusted LBITDA of $8.7 million in the same period of 2022[59]. - The profit attributable to equity holders for the six months ended June 30, 2023, was approximately $136.6 million, a significant turnaround from a loss of $32.4 million in the same period of 2022[65]. - The net cash generated from operating activities for the six months ended June 30, 2023, was $247.81 million, compared to $80.33 million for the same period in 2022, representing a significant increase of 208%[66]. Environmental and Safety Measures - The total greenhouse gas emissions for the first half of 2023 amounted to 13,207,054 tons, significantly higher than 143,025.86 tons in the first half of 2022[85]. - The greenhouse gas emission intensity increased from 0.24 tons of CO2 equivalent per ton of raw coal in the first half of 2022 to 2.70 tons in the first half of 2023[85]. - The company has implemented strict air quality control measures in compliance with Mongolian regulations to monitor and reduce emissions[84]. - The total recorded injury frequency was 18 incidents, with a rolling average of 3.05 incidents per million hours worked, compared to 0.0 incidents in the same period of 2022[43]. - The group provided a total of 11,889 training sessions, amounting to 49,157 hours, focused on occupational health, safety, and environmental training in the first half of 2023[44]. Shareholder and Governance Information - As of June 30, 2023, Odjargal Jambaljamts holds 46,164,754 shares, representing approximately 4.43% of the issued share capital[95]. - The company has adopted the corporate governance code and has complied with all applicable provisions during the six months ending June 30, 2023[93]. - The company has established written guidelines for employees regarding securities trading, with no violations reported during the reporting period[92]. - MCS Mining Group LLC and MCS Mongolia LLC each hold approximately 31.03% of the total issued share capital, with 323,492,188 shares[99]. Capital Expenditures and Investments - The company entered into an investment agreement to acquire 50% of Erdene Mongol LLC for a total consideration of $40.0 million, with $10.0 million paid in the first half of 2023[75]. - Total capital expenditures for the six months ended June 30, 2023, were $9.06 million, compared to $8.57 million for the same period in 2022, reflecting a year-over-year increase of 5.7%[74]. - The company acquired property, plant, and equipment worth $75,548,000 during the six months ended June 30, 2023, compared to $12,394,000 in the same period of 2022, highlighting increased capital investment[139]. Debt and Financial Obligations - The company reported a foreign exchange difference of $21,000 for the six months ended June 30, 2023, compared to a loss of $(12,004,000) in the same period of 2022, indicating improved currency stability[134]. - The company’s outstanding preferred notes due in 2024 amounted to $341,607,000 as of June 30, 2023, down from $373,756,000 as of December 31, 2022, indicating a reduction in debt obligations[147]. - The company repurchased $33,160,000 of its 2024 maturity senior notes, resulting in a gain of approximately $3,970,000 recognized in the profit and loss for the six months ended June 30, 2023[130]. Market and Competitive Position - The group aims to maintain a strong competitive position as a major washed coking coal producer in Mongolia by implementing prudent financial policies and improving asset utilization[47]. - The company is actively seeking to improve industry performance and promote dialogue through its participation in the TSM initiative[86]. - The company has not disclosed any new product developments or market expansion strategies during this reporting period[112].

Financial Performance - For the six months ended June 30, 2023, Mongolian Mining Corporation reported total revenue of approximately $516.7 million, a significant increase of 385.0% compared to $106.5 million for the same period in 2022[2] - Gross profit for the six months ended June 30, 2023, was approximately $225.1 million, a turnaround from a gross loss of $19.9 million recorded in the same period of 2022[2] - The net profit attributable to equity holders of the company for the reporting period was $136.6 million, compared to a net loss of $32.4 million in the same period of 2022[2] - Basic and diluted earnings per share for the reporting period were 13.11 cents, compared to a loss of 3.10 cents per share in the same period of 2022[2] - Adjusted EBITDA for the reporting period was approximately $258.0 million, compared to an adjusted LBITDA of approximately $8.7 million in the same period of 2022[81] - The group recorded a profit attributable to equity holders of approximately $136.6 million for the six months ended June 30, 2023, compared to a loss of $32.4 million in the same period of 2022[86] Revenue and Sales - The group sold approximately 4.9 million tons of coal products during the reporting period, with the average selling price of hard coking coal rising to $161.8 per ton, compared to $141.3 per ton in the same period of 2022[2] - The revenue from hard coking coal reached $450,216,000, compared to $94,244,000 in the previous year, indicating an increase of about 377%[16] - The company achieved total sales of 4.9 million tons of coal in the first half of 2023, representing a 419.4% increase year-on-year[68] - In the first half of 2023, the company exported 4.5 million tons of coal to China, including 2.8 million tons of hard coking coal, 0.4 million tons of semi-soft coking coal, and 1.3 million tons of thermal coal[65] Costs and Expenses - The total cost of revenue for the six months ended June 30, 2023, was $291,597,000, up from $126,425,000 in the same period of 2022, reflecting an increase of approximately 130%[17] - The company’s royalty and fee expenses increased to $62.0 million for the six months ended June 30, 2023, compared to $24.0 million in the same period of 2022[72] - The unit extraction cost for raw coal was $17.5 per ton for the six months ended June 30, 2023, up from $16.8 per ton in the same period of 2022, primarily due to increased fuel costs and higher stripping ratios[73] - Processing costs for the six months ended June 30, 2023, were approximately $29.5 million, compared to $7.3 million in the same period of 2022, with a unit processing cost of $4.3 per ton, down from $4.6 per ton[75] - The company reported a significant increase in logistics costs to $6.0 million for the six months ended June 30, 2023, from $3.7 million in the same period of 2022, driven by higher sales volumes[77] Assets and Liabilities - The total current assets as of June 30, 2023, amounted to $414.4 million, an increase from $259.6 million as of December 31, 2022[7] - Non-current assets totaled $1,568.4 million as of June 30, 2023, slightly up from $1,560.9 million as of December 31, 2022[8] - The total equity attributable to equity holders of the company was $1,009.99 million as of June 30, 2023, compared to $872.56 million at the end of 2022[11] - As of June 30, 2023, total accounts receivable amounted to $106,986,000, an increase from $92,157,000 as of December 31, 2022[30] - The total accounts payable as of June 30, 2023, was $104,170,000, slightly up from $103,987,000 at the end of 2022[34] Operational Highlights - The board of directors highlighted a strong operational performance and positive market conditions as key factors contributing to the improved financial results[2] - The company operates primarily in Mongolia, with its customer base mainly located in China, focusing on the extraction, processing, transportation, and sale of coal products[14] - The company has secured a standby credit facility totaling $50,000,000 from a local bank in Mongolia, ensuring sufficient financial resources for operational costs and upcoming financing obligations[12] - The company reported a net cash flow forecast indicating adequate financial resources to cover operational costs for the next twelve months[12] Employee and Training - Employee costs for the six months ended June 30, 2023, were $20.3 million, compared to $10.3 million for the same period in 2022, reflecting a significant increase in workforce expenses[95] - The total number of employees increased to 2,285 as of June 30, 2023, from 1,783 as of June 30, 2022, highlighting growth in workforce size[94] - The company provided 11,889 personal training sessions totaling 49,157 hours in occupational health, safety, and environmental training in the first half of 2023[66] - The company has implemented an online safety training program for all employees and contractors, enhancing training participation during the reporting period[95] Compliance and Governance - The company has maintained compliance with corporate governance codes and securities trading standards throughout the reporting period[95] - The audit committee consists of one non-executive director and three independent non-executive directors, ensuring compliance with applicable accounting standards and regulations[96] - The audit committee reviewed the unaudited interim results for the reporting period, confirming that the financial statements meet the necessary disclosure requirements[97] - The interim results announcement for 2023 will be published on the Hong Kong Stock Exchange and the company's website, with all required information to be sent to shareholders in due course[97]

Company Overview - Mongolian Mining Corporation is the largest producer and exporter of high-quality washed hard coking coal in Mongolia, operating the Ukhaa Khudag and Baruun Naran mines[3]. - The company’s mission is to operate a safe and profitable mining and mineral processing business while promoting the development of Mongolia[4]. Corporate Governance - The board of directors includes Odjargal Jambaljamts as the chairman and Battsengel Gotov as the CEO, with a strong emphasis on corporate governance and compliance with international best practices[10]. - The board consists of eight members, including two executive directors, three non-executive directors, and three independent non-executive directors[176]. - The company has maintained compliance with listing rules by appointing at least three independent non-executive directors, constituting one-third of the board[180]. - Independent non-executive directors play a crucial role in providing independent judgment and ensuring high standards of governance[183]. - The company has established a diversity policy for the board and aims to set measurable objectives for achieving board diversity[193]. Financial Performance - The company recorded a profit attributable to equity holders of approximately $59.2 million in 2022, reversing from a loss of $55.2 million in 2021[21]. - The company’s revenue surged by 197% to $546.2 million in 2022, compared to the previous year's revenue[21]. - The total cost of revenue for 2022 was $451.1 million, up from $161.5 million in 2021, primarily due to increased sales volume and rising supply costs[61]. - The group's gross profit for the year ended December 31, 2022, was approximately $95.1 million, a significant increase from $22.6 million for the year ended December 31, 2021[70]. - The net cash generated from operating activities for the year ended December 31, 2022, was $233.8 million, up from $84.9 million in 2021[77]. Operational Highlights - In 2022, the total sales volume of the company's coal products reached 4.7 million tons, a 194% increase from 1.6 million tons in the previous year[21]. - The company processed a total of 6.6 million tons of raw coking coal in 2022, producing 3.0 million tons of washed coking coal and 1.2 million tons of washed thermal coal[51]. - The company exported 4.2 million tons of coal to China in 2022, with 3.5 million tons transported through GS-GM[54]. - The company plans to expand production and sales of UHG and BN coking coal mines to pre-pandemic levels following the lifting of restrictions in 2023[21]. Environmental Commitment - The company aims to achieve sustainable growth and development through modern and cost-effective technology, focusing on safety and minimizing environmental impact[5]. - The company is committed to fulfilling its responsibilities towards safety, environment, and business operations in society[21]. - The company has implemented strict air quality control measures to comply with Mongolian regulatory requirements, including regular monitoring of emissions from its power plants[122]. - The company has established an Environmental, Social, and Governance (ESG) management committee led by the CEO, consisting of nine representatives, to oversee ESG performance and identify emerging risks and opportunities[119]. Community Engagement - The company is committed to building mutually beneficial relationships with local communities and government officials, contributing to social development through community initiatives[5]. - The company has established a community complaint handling platform to allow local community members to freely raise complaints and grievances[158]. - The company has been recognized as one of Mongolia's top five enterprises for eleven consecutive years due to its socio-economic contributions[115]. Employee Relations - The company emphasizes the importance of talent as a key resource and provides fair employment opportunities under a leadership structure[5]. - The company spent over 96 billion Tugrik on employee salaries, bonuses, and benefits in 2022, providing 10 to 20 different types of benefits and allowances[152]. - The overall employee turnover rate for the group was 33% in 2022, with a turnover rate of 21% for female employees and 36% for male employees[152]. - Female employees represent 15% of the workforce, exceeding the national industry average of 10%[155]. Safety and Training - The company recorded a lost time injury frequency rate of 0.43 per million hours worked in 2022, compared to 0.00 in 2021[54]. - The company conducted 12,434 individual training sessions totaling 61,847 hours on occupational health, safety, and environment in 2022[54]. - A total of 5,932 employees participated in various professional training programs, with 4,925 employees receiving occupational health and safety training[163]. Climate and Sustainability Initiatives - The company plans to redefine its sustainability goals to align with the United Nations Sustainable Development Goals[113]. - The company has been tracking and reporting its Scope 1 and Scope 2 greenhouse gas emissions since 2017 and began tracking Scope 3 emissions in 2019, with plans to report all 15 categories of Scope 3 emissions[123]. - The company has committed to planting 40 million trees in the UHG and BN mining areas by 2030 as part of its environmental initiatives[144]. Risk Management - The company has implemented a risk management policy and internal control procedures, reviewed annually by management and the board[157]. - The company closely monitors credit risk, with a focus on the current payment capacity of customers and the economic environment[79]. Strategic Partnerships - A strategic alliance and investment agreement was signed with Erdene Resource Development Corporation to advance the Bayan Khundii gold project from exploration to production[21]. - The company entered into an investment agreement to acquire 50% of Erdene Mongol LLC for a total consideration of $40.0 million, with an initial payment of $5.0 million made in January 2023[85].

Financial Performance - For the year ended December 31, 2022, Mongolian Mining Corporation reported total revenue of approximately $546.2 million, an increase of 196.8% compared to $184.1 million for the year ended December 31, 2021[2]. - Adjusted EBITDA for the year ended December 31, 2022, was approximately $132.3 million, representing a 247.2% increase from approximately $38.1 million for the year ended December 31, 2021[2]. - The net profit attributable to equity holders of the company for the year ended December 31, 2022, was $59.2 million, compared to a net loss of $55.2 million for the year ended December 31, 2021[2]. - Basic and diluted earnings per share for the year ended December 31, 2022, were 5.68 cents, compared to a loss of 5.35 cents per share for the year ended December 31, 2021[3]. - The total comprehensive income for the year ended December 31, 2022, was $37.165 million, compared to $7.641 million for the year ended December 31, 2021[5]. - The pre-tax profit for the year ended December 31, 2022, was $54,708,000, compared to a loss of $60,451,000 in 2021[38]. - The group reported a profit attributable to equity holders of approximately $59.2 million for the year ended December 31, 2022, compared to a loss of $55.2 million in 2021[125]. Revenue and Sales - The group's revenue for the year ended December 31, 2022, was $546,248,000, a significant increase from $184,069,000 in 2021, representing a growth of approximately 196%[28]. - The revenue from hard coking coal sales was $508,355,000 in 2022, compared to $174,175,000 in 2021, indicating a growth of about 192%[29]. - The revenue generated through agency sales arrangements amounted to approximately $43,535,000 in 2022, down from $75,516,000 in 2021[28]. - The company’s total revenue for the reporting year increased by 197%, reaching $546.2 million from approximately 4.7 million tons of coal sold[108]. Costs and Expenses - The cost of revenue for the year 2022 was $451,131,000, up from $161,490,000 in 2021, reflecting an increase of approximately 179%[30]. - The mining costs for the year 2022 were $147,846,000, which is a significant rise from $42,475,000 in 2021, marking an increase of around 248%[30]. - The processing costs for the year 2022 were $43,734,000, compared to $11,950,000 in 2021, representing an increase of about 265%[30]. - The transportation costs for 2022 were $100,942,000, significantly higher than $43,138,000 in 2021, indicating an increase of approximately 134%[30]. - The total cost of revenue for the year ended December 31, 2022, was $451.1 million, compared to $161.5 million in 2021, representing a significant increase[111]. Assets and Liabilities - Total non-current assets as of December 31, 2022, amounted to $1,560.862 million, a slight decrease from $1,594.018 million as of December 31, 2021[6]. - Current assets totaled $259.646 million as of December 31, 2022, down from $285.120 million as of December 31, 2021[6]. - The total equity attributable to equity holders of the company was $872.556 million as of December 31, 2022, compared to $829.823 million as of December 31, 2021[9]. - Total liabilities decreased to $1,492.220 million as of December 31, 2022, from $1,544.020 million as of December 31, 2021[8]. - As of December 31, 2022, the group recorded a net current liability of $68,642,000[14]. Cash Flow and Financial Position - The group expects to maintain sufficient financial resources to cover operational costs and financing obligations due within the next twelve months[14]. - The group obtained a total of $38,700,000 in standby credit from local banks in Mongolia to enhance cash preservation and efficiency[14]. - The group's cash and cash equivalents increased to $64.7 million as of December 31, 2022, from $25.9 million at the beginning of the year[126]. - The capital debt ratio as of December 31, 2022, was 20.5%, down from 24.1% as of December 31, 2021[127]. Operational Highlights - The group processed a total of 6.6 million tons of raw coking coal in 2022, producing 3.0 million tons of washed coking coal and 1.2 million tons of washed thermal coal[97]. - The total raw coal production for the group in 2022 was 5.7 million tons, with 5.3 million tons from the UHG mine and 0.4 million tons from the BN mine[95]. - The actual stripping ratio for the UHG mine was 5.3 cubic meters of overburden per ton of raw coal, while for the BN mine it was 8.1 cubic meters per ton[95]. - The group removed a total of 27.9 million cubic meters of overburden during the reporting year[95]. Employee and Training - Employee costs increased to $30,216,000 in 2022 from $23,281,000 in 2021, reflecting a rise of approximately 29%[33]. - A total of 5,932 employees participated in various professional training programs, with 4,925 employees receiving occupational, health, and safety training[136]. - Approximately 29% of the company's employees are local residents from the Umnugobi province, complying with the requirement to employ at least 5% local citizens in mining activities[78]. Regulatory and Compliance - The company adopted the corporate governance code as per the listing rules, ensuring compliance with all applicable provisions[137]. - The audit committee reviewed the company's annual performance for the year ended December 31, 2022[140]. - The Mongolian government approved the amendment of the Mining Law and the Budget Law on November 11, 2022, which includes provisions for local development funds from mining companies' donations[73]. Environmental and Safety - The company has no recorded environmental incidents rated "high" or above in 2022, with only a low-level oil spill incident occurring[104]. - The group recorded three lost time injuries in 2022, resulting in a lost time injury frequency of 0.43 per million hours worked[103]. - The company provided 12,434 personal training sessions totaling 61,847 work hours in occupational health and safety training in 2022[104].