Sales Performance - For Q3 2024, the company recorded sales of 2.1 million tons, up from 1.2 million tons in Q3 2023, representing a 75% increase[5] - For the three months ended September 30, 2024, the company recorded coal sales of 2.11 million tons, an increase from 1.15 million tons in the same period of 2023, representing an 83.5% increase[11] - For the nine months ended September 30, 2024, the company sold 4.4 million tons of coal, compared to 2.6 million tons in the same period of 2023, representing a 69.2% increase[14] Revenue and Profitability - The company's total revenue for the three months ended September 30, 2024, was $143.75 million, compared to $97.98 million in the same period of 2023, marking a 46.6% increase[15] - Revenue for Q3 2024 was $143.7 million, compared to $98 million in Q3 2023, driven by an expanded sales network and diversified customer base[17] - The company reported a net profit attributable to equity holders of $10.04 million for the three months ended September 30, 2024, compared to $29.35 million in the same period of 2023, a decrease of 65.8%[15] Cost and Expenses - The average realized price per ton in Q3 2024 was $67.8, down from $85.6 in Q3 2023, indicating a decrease of approximately 20.5%[5] - The unit sales cost for the three months ended September 30, 2024, was $52.77 per ton, up from $42.23 per ton in the same period of 2023, indicating a 24.5% increase[15] - Sales costs for Q3 2024 increased to $111.4 million from $48.6 million in Q3 2023, mainly due to higher production costs associated with the expansion into certain processed coal categories[18] Tax Liabilities - As of September 30, 2024, the company recorded $85.1 million in additional tax liabilities and penalties, including $75 million in payable tax penalties[10] - The company has paid a total of $1.7 million in tax penalties to the Mongolian tax authority to date[10] - The company anticipates potential recoveries of approximately $46 million from the tax penalties if future appeals are successful, although outcomes remain uncertain[10] Operational Performance - The gross profit for the three months ended September 30, 2024, was $32.39 million, down from $49.41 million in the same period of 2023, a decline of 34.5%[15] - The company recorded an operating profit of $27.7 million in Q3 2024, compared to $46.3 million in Q3 2023, reflecting a decline of about 40.3%[6] - The company is expanding its product portfolio to include various coal products, including blended coal, wet-washed coal, and dry-selected processed coal[5] Financial Position - The company's working capital deficit reached $273,100,000 as of September 30, 2024, compared to a deficit of $218,800,000 at the end of 2023[41] - Total liabilities increased to $487,993 thousand as of September 30, 2024, compared to $437,070 thousand in the previous year, reflecting a growth of 11.5%[76] - The company reported a working capital deficit of $139 million, including trade and other payables of $101.39 million and additional tax liabilities of $83.4 million as of September 30, 2024[42] Future Outlook - The company is optimistic about the Chinese coal market, anticipating that coal will remain a primary energy source despite increasing environmental regulations[70] - Future coal demand in China and trends in the Chinese coal industry are critical factors for the company's outlook[81] - The company acknowledges risks related to mining activities, including potential deviations in capital and operational costs from management estimates[82] Environmental and Safety Practices - The company aims to maintain high standards of health, safety, and environmental practices in its operations, emphasizing corporate social responsibility[70] - The company is focused on the environmental impact of its activities and measures to mitigate potential environmental effects, emphasizing health, safety, and environmental performance[81] Legal and Regulatory Matters - The company is involved in a class action lawsuit related to restated financial statements, with ongoing proceedings expected to continue into 2025[56] - The appeal by the Gurvantes soum citizens' representative regarding the mining license area was ruled invalid by the appellate court, making the decision final[60] Capital Management - The company is actively managing its capital resources to ensure sufficient funding for ongoing operations and expansion plans[35] - The company has secured a financial support channel of up to $127 million (approximately RMB 900 million) from affiliates of its major shareholder to improve liquidity and financial condition[44]

Financial Performance - In Q2 2024, the company recorded sales of 1.2 million tons, up from 0.9 million tons in Q2 2023, representing a 33.3% increase[11]. - The average realized price per ton in Q2 2024 was $77.6, down from $95.3 in Q2 2023, indicating a decrease of 18.1%[11]. - The company achieved an operating profit of $15 million in Q2 2024, a turnaround from an operating loss of $40.5 million in Q2 2023[11]. - Revenue for the second quarter of 2024 was $92.8 million, compared to $83.2 million in the second quarter of 2023, marking an increase of 19.0%[30]. - The company reported a gross profit of $55.9 million for the first six months of 2024, compared to $72.0 million in the same period of 2023, a decrease of 22.3%[28]. - Operating profit for the second quarter of 2024 was $15.0 million, a turnaround from an operating loss of $40.5 million in the second quarter of 2023[30]. - Revenue for the first six months of 2024 was $175 million, up from $145 million in the same period of 2023, driven by an expanded sales network, diversified customer base, and increased coal product offerings[38]. - The company reported a net loss attributable to equity holders for the first six months of 2024 was $2.1 million, a significant improvement from a loss of $60.6 million in the same period of 2023[28]. - The company’s total operating expenses for the second quarter of 2024 were $73.6 million, compared to $42.0 million in the second quarter of 2023, reflecting a 75.5% increase[32]. Tax Liabilities and Penalties - SGS received a tax penalty of approximately $75 million from the Mongolian tax authority, related to an audit covering the years 2017 to 2020[19]. - As of June 30, 2024, the company recorded additional tax liabilities and penalties totaling $85.1 million, including $75 million in tax penalties and $10.1 million in late payment penalties[20]. - The company has paid a total of $1.7 million of the tax penalties to the Mongolian tax authority to date[20]. - The company has the potential to recover approximately $46 million of the tax penalties if the appeal is successful, although the outcome remains uncertain[20]. - The company submitted an appeal regarding the revised tax assessment of approximately $80 million on June 12, 2024[19]. Operational Efficiency and Production - The company is focused on improving the operational efficiency and output of its coal washing facilities at the Oyu Tolgoi coal mine[4]. - The company anticipates a significant increase in coal production levels in 2024, driven by operational and development plans[4]. - The company is actively engaged in the development of a new dry coal washing system at the Oyu Tolgoi coal mine[4]. - The company has been enhancing its mining operations by adopting various coal processing methods, resulting in improved coal quality and increased export volumes[11]. - The company aims to enhance coal product quality and expand market penetration in China through various processing methods[58]. - The company plans to continue focusing on operational efficiency and cost management strategies to enhance profitability in the upcoming quarters[44]. Financing and Liquidity - The company expects to have sufficient liquidity and capital resources to meet its ongoing obligations, including a $75 million tax penalty and $10.1 million in additional tax late fees[2]. - The company entered into a payment deferral agreement with JDZF on March 19, 2024, allowing the deferral of approximately $96.5 million in cash and in-kind interest payments due by August 31, 2024[12]. - The company will provide monthly updates on its financial condition and business operations to JDZF during the deferral period[14]. - The company anticipates receiving financial support of up to $127 million from its major shareholder's affiliated company to improve liquidity[71]. - The company faces significant uncertainties regarding its ability to continue as a going concern due to ongoing tax disputes and working capital challenges[70]. Market and Demand - The company is assessing the impact of future coal demand in China on its operations and profitability[4]. - The company is evaluating the implications of coal price fluctuations and global economic conditions on its business[4]. - The company is optimistic about the Chinese coal market, believing that coal will remain a primary energy source in the foreseeable future[103]. - The company plans to enhance its logistics capabilities to address distribution bottlenecks and improve sales network efficiency[104]. Environmental and Safety Commitments - The company is committed to mitigating environmental impacts and enhancing health, safety, and environmental performance[4]. - The company is committed to maintaining high health, safety, and environmental standards in its operations, emphasizing corporate social responsibility[104]. Shareholder and Governance Matters - The company will seek shareholder approval for both the March and April 2024 deferral agreements at a special meeting scheduled for August 28, 2024[12]. - The effectiveness of the convertible bond amendments is contingent upon obtaining necessary shareholder approvals by August 30, 2024[17]. - The company is required to communicate with JDZF before appointing or terminating any senior management personnel during the deferral period[14].

Sales Performance - For Q2 2024, the company recorded sales of 1.2 million tons, an increase from 0.9 million tons in Q2 2023[5] - For the three months ended June 30, 2024, the company reported coal sales of 1.20 million tons, an increase from 0.88 million tons in the same period of 2023, representing a 36% increase[16] - For the first six months of 2024, the company achieved coal sales of 2.30 million tons, compared to 1.50 million tons in the same period of 2023, indicating a 53.3% increase[17] - The company reported a total coal sales volume of 1.20 million tons for the quarter ending June 30, 2024, compared to 1.05 million tons in the previous quarter, representing a 14.29% increase[30] Revenue and Profitability - The total revenue for the three months ended June 30, 2024, was $92.82 million, compared to $83.24 million in the same period of 2023, reflecting an increase of about 11.5%[18] - Revenue for Q2 2024 was $92.8 million, up from $83.2 million in Q2 2023, driven by an expanded sales network, diversified customer base, and increased sales of coal products[20] - Revenue for the first half of 2024 was $175 million, compared to $145 million in the first half of 2023, influenced by sales network expansion and product diversification[25] - The company reported a net loss attributable to equity holders of $2.09 million for the three months ended June 30, 2024, compared to a loss of $60.63 million in the same period of 2023[18] Pricing and Costs - The average realized price per ton in Q2 2024 was $77.6, down from $95.3 in Q2 2023, primarily due to changes in the product mix and price declines of premium semi-soft coking coal and processed coal[5] - The average realized price per ton for the second quarter of 2024 was $77.55, down from $95.34 in the second quarter of 2023, reflecting a decrease of approximately 18.5%[18] - The unit sales cost for sold products increased to $61.32 per ton in Q2 2024 from $47.76 per ton in Q2 2023, marking a rise of about 28.3%[16] - The cash cost of sold products per ton was $49.57 in the first half of 2024, up from $41.27 in the first half of 2023, an increase of about 20.5%[18] Operating Performance - The company achieved an operating profit of $15 million in Q2 2024, a turnaround from an operating loss of $40.5 million in Q2 2023, largely due to a previous tax penalty of $75 million imposed by the Mongolian tax authority[6] - For the first six months of 2024, the company reported an operating profit of $47.2 million, compared to an operating loss of $12.5 million in the same period of 2023[25] - Operating expenses in Q2 2024 were $59.5 million, up from $31.1 million in Q2 2023, reflecting increased sales and expansion efforts[21] Tax Liabilities and Penalties - The company received a tax penalty of approximately $75 million from the Mongolian tax authority following an audit covering the years 2017 to 2020[11] - Following an appeal, the tax penalty was reassessed to approximately $80 million, with the company recording $85.1 million in additional tax liabilities as of June 30, 2024[12] - The company has paid a total of $1.7 million towards the tax penalties to date, with potential recoverable amounts estimated at $46 million if the appeal is successful[12] Financial Position and Liquidity - The company faces significant uncertainties regarding its ability to continue as a going concern due to insufficient assets and working capital[13] - As of June 30, 2024, the company's asset deficit was $129 million, an improvement from $141.3 million on December 31, 2023[40] - The company's working capital deficit reached $274.7 million as of June 30, 2024, compared to $218.8 million on December 31, 2023[40] - The company must generate sufficient operating cash flow or secure additional capital to continue as a going concern[39] Agreements and Contracts - A construction and operation contract was signed with Tangshan Shenzhou Machinery Group for a new dry coal selection system at the company's coal mine in Mongolia, with a total cost of approximately $10.9 million[6] - The BOT agreement with Tangshan will be effective from July 15, 2024, to October 1, 2029, allowing the company to oversee coal quality assurance and operations management[6] - The company has entered into a payment deferral agreement with JD Zhixing Fund L.P., allowing for the deferral of cash and in-kind interest payments totaling approximately $7.9 million until August 31, 2024[7] Operational Efficiency and Expansion - The company is committed to expanding its mining operations and enhancing coal quality through various processing methods[5] - The company plans to export improved quality F-grade coal to China starting from Q1 2024, meeting the import quality standards set by Chinese authorities[5] - The company is focused on enhancing operational efficiency and production capacity at its coal washing facilities in the Aobao Te Tolei coal mine[92] Corporate Governance and Compliance - A new independent non-executive director was elected at the annual general meeting held on June 27, 2024, while another director did not seek re-election[13] - The company continues to comply with corporate governance requirements, with the independent chairman fulfilling the responsibilities of the chairman since November 2017[53] - All directors confirmed compliance with the standards set forth in the company's securities trading policy during the six months ended June 30, 2024[54] Legal Matters - The company is involved in ongoing litigation related to previously disclosed financial restatements, with a collective lawsuit permitted to proceed against the company[47] - The company is engaged in ongoing litigation related to a class action in Ontario, which may impact its operations[92] - The company has entered into a payment deferral agreement with JDZF, allowing the deferral of $1.1 million in interest payments due on November 19, 2022, to November 19, 2023[44]

Financial Performance - In Q1 2024, the company recorded an operating profit of $32.1 million, compared to $27.9 million in Q1 2023, reflecting an increase of approximately 11.4%[5][26] - The revenue for Q1 2024 was $82.2 million, up from $61.8 million in Q1 2023, representing a growth of about 33.5%[26] - The net profit for Q1 2024 was $12.3 million, a decrease from $24.3 million in Q4 2023[50] - Basic earnings per share for Q1 2024 were $0.041, down from $0.082 in the previous quarter[50] - The company reported a net profit attributable to equity holders of $12.3 million for the first quarter of 2024, compared to $7.9 million in the same period of 2023[87] Sales and Production - The company experienced a 33% decrease in coal sales volume, from 0.54 million tons in Q4 2023 to 0.36 million tons in Q1 2024[40] - The company reported a total coal sales volume of 1.05 million tons in Q1 2024, compared to 0.96 million tons in Q4 2023[40] - In Q1 2024, the company recorded sales of 1.1 million tons, up from 600,000 tons in Q1 2023, representing an increase of 83.33% year-over-year[58] - Total coal sales volume increased to 1.05 million tons, up from 0.60 million tons year-over-year, with an average realized price of $79.52 per ton, down from $104.11 per ton[84] Cost and Expenses - Operating expenses for Q1 2024 were $33.4 million, compared to $18.3 million in Q1 2023, reflecting a significant increase of approximately 83%[16] - The sales cost for coal operations in Q1 2024 was $45.5 million, compared to $30.9 million in Q1 2023, indicating an increase of about 47%[16] - The average realized price per ton in Q1 2024 was $79.5, down from $104.1 in Q1 2023, indicating a decrease of approximately 23.6%[58] - The unit sales cost for products sold in Q1 2024 was $43.4 per ton, compared to $51.6 per ton in Q1 2023, showing a reduction of about 15.5%[24] Tax Liabilities and Penalties - As of March 31, 2024, the company recorded additional tax liabilities and penalties totaling $85.1 million, which includes $75 million in tax penalties and $10.1 million in late payment penalties[47] - The company has paid a total of $1.7 million of the tax penalties to the Mongolian tax authority[47] - SGS received a tax penalty of approximately $75 million from the Mongolian tax authority, primarily due to differing interpretations of tax laws[44] Financing and Debt - The company entered into a payment deferral agreement with JD Zhixing Fund L.P. allowing for the deferral of approximately $96.5 million in cash and in-kind interest payments until August 31, 2024[59] - The company agreed to pay a deferral fee at an annual interest rate of 6.4% on the unpaid balance of the deferred payments[60] - The company issued $500 million of secured convertible bonds with an interest rate of 8.0%, where 6.4% is paid in cash semi-annually and 1.6% in shares annually[97] Operational Developments - The company is focused on expanding its coal product categories to meet market demand, including mixed coal, washed coal, and dry processed coal[4] - The company is expanding its mining operations and utilizing various coal processing methods to improve coal quality and increase production, which has boosted coal exports to China[72] - The company aims to diversify its coal product offerings, including mixed coal, washed coal, and dry-selected processed coal, to meet market demand[120] Market and Strategic Initiatives - The company is focused on expanding its market reach and customer base in China to enhance the profitability of its coal products[120] - The company has engaged in strategic initiatives to strengthen coal trade relations between Mongolia and China, including infrastructure development and streamlined customs processes[120] - The company remains cautiously optimistic about the Chinese coal market, anticipating that coal will continue to be a primary energy source in the foreseeable future[121] Legal Matters - The collective lawsuit against the company is ongoing, with hearings scheduled for May 13-14, 2024, and further evidence collection set for August 7-9 and September 17, 2024[112] - The company has confirmed that no provisions are required for the collective lawsuit as of March 31, 2024[114] Future Outlook - The company anticipates receiving financial support of up to $127 million from its major shareholder's affiliates to improve liquidity and financial conditions[94] - The company plans to expand its mining operations and production capacity in 2024[139] - The company is preparing for the renewal of its cooperation agreement with local customs in Mongolia in Q2 2024[139]

Operational Performance - In 2023, SouthGobi achieved a record overburden removal of 25.71 million cubic meters, marking a historical high[12]. - The company produced 4.05 million tons of raw coal and sold 3.59 million tons, representing one of the best operational performances in its history[12]. - SouthGobi has partnered with strong third-party collaborators to enhance coal production quality, significantly narrowing the price gap with similar coal types at the Ceke port[13]. - SouthGobi plans to implement a strategy of "more coal, faster sales, and better coal" to leverage economies of scale and improve profitability[15]. Investment and Infrastructure - The company invested 40% in Mongolia's first cross-border railway project, expected to increase the railway throughput capacity by 10-13 million tons per year once operational[13]. - SouthGobi is well-positioned to capitalize on opportunities between China and Mongolia, leveraging its major shareholders' expertise in the coal sector[19]. Management and Leadership - The company has undergone significant changes in its capital structure, transitioning to a primary listing in Hong Kong and moving to the TSX-V in Canada[12]. - The management team has been restructured, with a focus on optimizing operational strategies in response to market challenges[12]. - The company appointed Shen Chen as Vice President in charge of legal affairs on May 25, 2023, bringing extensive experience in the energy sector[25]. - Xu Ruibin was appointed as CEO on May 15, 2023, succeeding Wang Dong, who served from September 8, 2022, to May 15, 2023[128]. Financial Performance - The company reported its financial results for the fiscal year ending December 31, 2023, with comprehensive income details available on page 155 of the annual report[44]. - The company has not declared any dividends since its establishment and does not anticipate declaring any in the foreseeable future[47]. - As of December 31, 2023, the company had 295,277,779 shares of common stock outstanding[49]. - The company has a comprehensive risk management strategy in place to address potential uncertainties affecting its business operations[43]. Shareholder Information - The board of directors includes both executive and non-executive members, with recent appointments made in May 2023[54]. - As of December 31, 2023, the total number of issued shares is 295,277,779, with significant shareholdings including 29.03% by Zhu Chonglin and 15.70% by Gao Zhu[62][65]. - The company has a stock option plan that allows for the issuance of shares not exceeding 10% of the issued shares as of the 2022 AGM date[68]. - Major shareholders include JDZF, JD Dingxing Limited, and others, each holding 29.03% of the issued shares, totaling 85,714,194 shares[86]. Corporate Governance - The company has established various committees to enhance corporate governance, including an audit committee and a nomination and corporate governance committee[114]. - The board consists of 8 current directors, with 3 (37.5%) identified as independent non-executive directors[123]. - The independent non-executive chairman attended the annual general meeting on June 20, 2023, ensuring effective communication with shareholders[116]. - The company has implemented a whistleblower program to uphold ethical standards among employees[120]. Diversity and Inclusion - The board aims for at least 30% female representation by December 31, 2024, as part of its diversity strategy[184]. - As of December 31, 2023, the employee gender ratio was 87% male and 13% female[185]. - The company aims to increase the percentage of female employees from the current 13% over the next few years[187]. Compensation and Performance - The compensation policy for executives is based on performance, qualifications, and abilities, with flexibility in decision-making[90]. - The compensation committee meets quarterly to address any compensation issues and evaluate executive performance[92]. - The remuneration for independent non-executive directors is set at CAD 45,000 for regular members and CAD 25,000 for the lead independent director[197]. Risk Management - The company has a comprehensive risk management strategy in place to address potential uncertainties affecting its business operations[43]. - The board receives monthly reports from management regarding the assessment and management of key business risks[137]. Employee and Operational Commitments - Employee costs for the fiscal year amount to approximately $9.6 million, compared to $5.6 million in 2022, reflecting a significant increase[84]. - The company had 554 employees working at various locations as of December 31, 2023[84]. - The company has a policy for monitoring compliance with health, environment, safety, and social responsibility regulations[160].

Deferred Payment Agreements - The company has agreed to pay JDZF a deferred payment fee at an annual interest rate of 6.4% for the unpaid balance related to the November 2023 deferred payment amount[1]. - The company will also pay JDZF a deferred payment fee at an annual interest rate of 1.5% for the unpaid balance related to the revised cooperation agreement for the November 2023 deferred payment amount[1]. - The November 2023 deferred payment agreement does not specify a fixed repayment schedule, requiring the company to make best efforts to pay the amounts due[3]. - The company will provide monthly updates on its financial status and business operations to JDZF during the period leading up to the deferred payment date[3]. - The company has entered into a new deferred payment agreement with JDZF on March 19, 2024, allowing for the deferral of payments totaling $96.5 million due by August 31, 2024[12]. - The company will also defer semi-annual cash interest payments of $7.9 million and $8.1 million due in May and November 2024, respectively[12]. - The company will seek approval from disinterested shareholders for the March 2024 deferred payment agreement at the upcoming annual general meeting[4]. - The company has signed a new deferred payment agreement with JDZF, allowing for the postponement of payments due in November 2023[78]. - The company has entered into a deferral agreement with JDZF to postpone payments due in March 2024 until August 31, 2025[158]. Financial Performance - The company recorded an operating profit of $75.9 million in 2023, a significant increase from $13.6 million in 2022, driven by increased sales volume and higher average selling prices[18]. - Net profit for 2023 was $24.3 million, a recovery from a net loss of $60.6 million in 2022, demonstrating improved financial performance[25]. - The company reported a net profit attributable to equity holders of $908,000 for the year ended December 31, 2023, compared to a net loss of $30,419,000 in 2022[144]. - The company recorded additional tax payments and penalties amounting to $85.1 million as of December 31, 2023[106]. - The company incurred a foreign exchange loss of $1.2 million in 2023, contrasting with a gain of $4.6 million in 2022[180]. Sales and Production - The average coal selling price increased from $65.7 per ton in 2022 to $93.0 per ton in 2023, attributed to improved market conditions in China, expanded sales networks, and diversified customer base[17]. - The sales volume in Q4 2023 reached 1 million tons, compared to 500,000 tons in Q4 2022, indicating a 100% increase year-over-year[24]. - Coal sales volume for the year 2023 was 3.59 million tons, an increase from 1.11 million tons in 2022[140]. - The company has resumed wet processing operations in April 2023, leading to improved cash flow due to increased coal export volumes to China[121]. - The company has resumed coal washing operations since April 2023, responding to market demand by blending higher ash content products into semi-soft coking coal[192]. Operating Expenses - Total operating expenses for 2023 were $114.3 million, up from $40.1 million in 2022, with notable increases in costs related to royalties and coal mining operations[19]. - Management expenses rose to $10.4 million in 2023 from $6.9 million in 2022, primarily due to increased administrative costs and employee compensation[20][31]. - Operating expenses for Q4 2023 were $26.906 million, up from $12.929 million in Q4 2022, representing a 108% increase[52]. - The company reported a significant increase in royalty expenses, which rose to $38.5 million in 2023 from $14.2 million in 2022[180]. Liquidity and Financial Position - The company reported a total asset deficit of $141.3 million as of December 31, 2023, slightly improved from $142.5 million a year earlier[44]. - Working capital deficit reached $218.8 million as of December 31, 2023, compared to $184.7 million at the end of 2022, highlighting liquidity challenges[44]. - The company faces significant uncertainties regarding its ability to continue as a going concern, with potential legal actions and bankruptcy risks looming[45]. - The company is closely monitoring factors affecting its liquidity, including coal market prices and economic growth in China[160]. - The company has projected cash flow forecasts covering a 12-month period starting from December 31, 2023, which includes cost-saving measures[158]. Management and Strategic Changes - The company has undergone management changes, including the appointment of a new CEO and CFO in 2023[13][15]. - The company aims to expand its market reach and customer base by enhancing its sales network and logistics capabilities[129]. - The company plans to collaborate with experienced coal mining enterprises in China and Mongolia to seize strategic opportunities[132]. - The company is committed to maintaining high standards of health, safety, and environmental responsibility in its operations[130]. Market Conditions and Risks - The company faces significant uncertainty regarding its ability to continue as a going concern due to potential legal actions and inability to repay trade payables[156]. - The company has applied for the renewal of its cooperation agreement with Mongolian customs, which expired on November 23, 2023, and expects approval by Q2 2024, though the timing remains uncertain[57]. - The company has not faced any externally imposed capital requirements as of December 31, 2023, and December 31, 2022[168]. - The management's ability to implement the planned measures is subject to significant uncertainty, particularly regarding timely access to credit financing[159].

智通财经APP获悉，2月22日早盘，煤炭板块持续走强，截至发稿，南戈壁(01878)涨超9%，兖煤澳大利 亚(03668)涨超3%，中煤能源(01898)、中国神华(01088)涨超2%。据中央气象台预测，受寒潮影响，2月 20-26日，我国中东部将出现持续大范围雨雪冰冻天气，此次天气过程低温持续时间长，强降雪、冻雨 影响面广。加之此前，山西省应急管理厅、国家矿山安监局山西局、山西省能源局印发《关于开展煤 矿“三超”和隐蔽工作面专项整治的通知》。光大证券认为，该事件短期将影响山西地区煤炭的供给，尤 其是焦煤的供给，对焦煤价格构成利好。 根据中央气象台预测，2月20日至26日，我国中东部地区将出现寒潮及大范围雨雪低温冰冻天气。此次 过程与节前雨雪冰冻过程相比，冻雨整体强度和持续性不及上次，但两次过程雨雪范围和强度基本相 当，此次降温幅度更大，低温持续时间更长，冻雨影响范围更广，南方降雨更强。 日前，山西省应急管理厅等三部门印发《关于开展煤矿“三超”和隐蔽工作面专项整治的通知》，山西部 分集团煤矿开始下发减产要求。整治重点内容包括，煤矿是否均衡组织生产，是否超能力下达全年、每 月原煤生产计划任务，全年原煤产量是否 ...

越野车在乌拉特草原上疾驶，四望全是天际线，仿佛进入一个巨大的穹庐。 春节期间，内蒙古临河通往中蒙边境的242国道上，车辆并不多。出发两小时后，一辆辆运煤大车呼啸而过，一处处物流园区分布路旁，一阵阵鞭炮声远远传来——甘其毛都口岸到了。 百年传承的老树 站在甘其毛都口岸地标性建筑62.75米高的钟楼上，边陲小镇尽收眼底。钟楼里面，就是这里的城市规划馆。展陈资料显示，蒙语甘其毛都，汉译就是“一棵树”。 这是一棵“老树”。用甘其毛都镇图古日格嘎查62岁护边员额尔登的话讲，甘其毛都作为物资交流之地的年头比他岁数都长。 百余年前，甘其毛都就是蒙汉商贸交流之地。那时，商贸交流主要靠驼队。每年春天，驼铃声声，一些大的旅蒙商前来河套牧羊海地区采购，形成了张家口—呼和浩特—包头—川井哈拉汗—甘其毛都—乌兰巴托的万里驼道。随着改革开放的春风吹进乌拉特草原，1989年12月，内蒙古自治区人民政府批准甘其毛都为中蒙边境贸易临时过货点。次年，在十分简陋的条件下，甘其毛都实现了首次过货。1992年，国务院正式批准甘其毛都为国家陆路一类季节性双边口岸。甘其毛都与蒙古国南戈壁省的嘎顺苏海图口岸相对应，是距离蒙古国首都乌兰巴托最近的陆路口岸。2 ...

Financial Performance - The company reported an operating profit of $33.8 million for the first nine months of 2023, compared to $5.9 million for the same period in 2022, reflecting a significant increase in sales volume and average selling prices [15]. - For the quarter ended September 30, 2023, the company reported revenues of $97,979,000, an increase of 17.7% compared to $83,243,000 for the same period in 2022 [22]. - The company recorded a net profit of $29,349,000 for the quarter, a significant recovery from a net loss of $60,632,000 in the same quarter of the previous year [22]. - Basic and diluted earnings per share were both $0.10, compared to a loss of $0.21 per share in the prior year [22]. - Total revenue for the three months ended September 30, 2023, was $97,979 thousand, compared to $36,807 thousand for the same period in 2022, representing a significant increase [134]. - Gross profit for the nine months ended September 30, 2023, was $121,452 thousand, up from $4,487 thousand in the same period of 2022 [134]. - Operating profit for the three months ended September 30, 2023, was $46,343 thousand, compared to $3,456 thousand for the same period in 2022 [134]. - The company reported a net profit attributable to equity holders of $29,349 thousand for the three months ended September 30, 2023, compared to a loss of $8,017 thousand in the same period of 2022 [134]. Sales and Production - Coal sales volume for the three months ended September 30, 2023, was 1.15 million tons, up from 0.55 million tons in the same period of 2022, representing a 109% increase [8]. - The company’s coal production for the first nine months of 2023 was 2.71 million tons, significantly higher than 0.12 million tons in the same period of 2022, due to the resumption of major mining operations [10]. - The company sold 1.15 million tons of coal in Q3 2023, an increase from 0.88 million tons in Q3 2022 [50]. - The average coal selling price increased from $65.4 per ton in Q3 2022 to $85.6 per ton in Q3 2023, attributed to improved market conditions in China and an expanded sales network [3]. - The average realized price for coal in the first nine months of 2023 was $93.05 per ton, compared to $65.53 per ton in the same period of 2022, marking a 42% increase [8]. - The average realized price per ton of coal in Q3 2023 was $85.57, down from $95.34 in Q3 2022 [50]. - The unit sales cost decreased from $58.3 per ton in Q3 2022 to $42.2 per ton in Q3 2023, driven by economies of scale from increased sales [41]. Costs and Expenses - The total cash cost of sold products per ton decreased from $42.91 in 2022 to $33.08 in 2023 for the three months ended September 30, indicating improved cost management [8]. - Financing costs for the first nine months of 2023 were $36.7 million, up from $31.0 million in 2022, primarily due to interest expenses on convertible bonds totaling $205 million [19]. - The company’s management expenses for the first nine months of 2023 totaled $6.56 million, compared to $4.81 million in 2022, reflecting increased operational activities [18]. - Sales cost for Q3 2023 was $48.6 million, up from $32 million in Q3 2022, primarily due to increased sales [44]. - Total sales cost for the first nine months of 2023 was $121.6 million, compared to $38.1 million in the same period of 2022 [47]. - The company reported a direct cash cost of $32.26 per ton for sold products in Q3 2023, compared to $33.79 in Q3 2022 [50]. - Management expenses for Q3 2023 were $1.754 million, compared to $666,000 in Q3 2022, reflecting increased administrative costs due to expanded operations [45]. Financial Management and Liabilities - The company has made a tax provision of $75,000,000 as of September 30, 2023, due to ongoing tax disputes [26]. - The company has a reimbursement claim of $6,300,000 related to Turquoise Hill, which is currently disputed [25]. - The company has established a cash flow forecast covering the next 12 months, considering cost-saving measures and potential financial support of up to $73,000,000 from major shareholders [29]. - The company is facing potential legal actions and bankruptcy proceedings due to delays in repaying trade payables [28]. - As of September 30, 2023, the company reported a working capital deficit that includes significant liabilities of $67.1 million, which consists of unpaid taxes of $26.2 million and a provision for the $75 million tax penalty [56]. - The company has a tax provision of $74,990 thousand for the nine months ended September 30, 2023 [134]. - Total liabilities increased to $412,291 thousand as of September 30, 2023, compared to $323,883 thousand as of December 31, 2022 [138]. Strategic Outlook and Growth - The company expects to continue expanding mining operations and capacity in 2023 to capitalize on anticipated sales growth [83]. - The company aims to increase coal production and optimize cost structure by hiring large third-party contract mining companies and enhancing procurement management [84]. - The company has several growth potentials, including the Suu Mbeel deposit located approximately 20 km east of the Aobao Te Taalai coal mine and the Zag Suuj deposit located about 150 km east of the same mine [85]. - The company is focused on enhancing infrastructure and technology for cross-border exports at the Ceke port in 2023 [131]. - The company anticipates future coal demand in China will influence its operational strategies [148]. - The company aims to expand its market reach and customer base in China to enhance the profitability of its coal products [119]. Legal and Compliance Issues - The company is involved in a class action lawsuit related to the restatement of financial statements, with no provision required as of September 30, 2023 [75]. - The company has received a tax penalty notice from the Mongolian tax authority amounting to approximately $75 million, with an appeal submitted on August 17, 2023 [160]. - Future outlook includes addressing potential environmental impacts and compliance with regulatory requirements [132]. Operational Efficiency - The company resumed major mining operations, including coal extraction, by the end of 2022, leading to increased coal production and significantly improving cash flow by mid-2023 [82]. - The company is actively working to improve the operational efficiency and output of its washing facilities at the Ovoot Tolgoi coal mine [148]. - The company is focused on enhancing product value through coal washing and selection processes [143]. - The company has been blending higher ash content products into its semi-soft coking coal to meet market demand [156].

Stock Options and Bonus Shares - As of December 31, 2022, the total number of shares available for issuance under the stock option plan was 2,297 shares, representing approximately 0.00078% of the company's issued shares[3] - The total number of shares available for issuance under the bonus share plan was 1,800,000 shares, accounting for about 0.61% of the company's issued shares as of December 31, 2022[10]