Company Overview - Mongolian Mining Corporation (MMC) is the largest producer and exporter of high-quality hard coking coal in Mongolia, operating the Ukhaa Khudag and Baruun Naran open-pit coal mines[5]. - MMC aims to become a leading mining company in the region by maximizing value for shareholders and local communities[10]. COVID-19 Response - As of June 30, 2021, over 98% of MMC's employees have been fully vaccinated against COVID-19, contributing to a safe working environment[24]. - The Mongolian government has extended the high alert status until December 31, 2021, impacting cross-border travel and operations[23]. - The company adjusted its coal mining operations at UHG and BN mines in response to the COVID-19 pandemic during the first half of 2021[50]. - The company actively supported local authorities in COVID-19 risk management and prevention measures, including donations of personal protective equipment and emergency supplies[104]. - The company has implemented emergency measures to mitigate the negative impact of COVID-19, including temporary adjustments to production levels starting mid-June 2021[66]. Economic and Market Conditions - In the first half of 2021, China's crude steel production reached 563.3 million tons, an increase of 11.8% compared to the same period in 2020[25]. - China's apparent consumption of crude steel rose by 27.1% to 609.4 million tons in the first half of 2021[25]. - China's coke production increased by 3.7% to 237.1 million tons in the first half of 2021, with consumption rising by 4.1% to 239.7 million tons[25]. - The profit of China's coal mining and washing industry surged to RMB 206.9 billion in the first half of 2021, a year-on-year increase of 113.8%[25]. - China's coking coal imports decreased by 41.5% to 22.3 million tons in the first half of 2021, primarily due to reduced supply from Australasia[25]. - Mongolia exported 9.6 million tons of coal to China in the first half of 2021, a 10.3% increase from 8.7 million tons in the same period of 2020[26]. Environmental and Sustainability Initiatives - MMC is committed to sustainable development and minimizing environmental impact, adhering to all regulatory environmental standards[9]. - The company planted 3,200 trees as part of its spring planting initiative, contributing to biodiversity efforts in the Gobi region[105]. - No environmental incidents were recorded during the reporting period, and sustainable technologies were used for waste management[105]. Financial Performance - Revenue for the six months ended June 30, 2021, was $95,153 thousand, a decrease of 39.4% compared to $157,529 thousand in the same period of 2020[130]. - Gross profit for the same period was $24,616 thousand, down 48.3% from $47,636 thousand year-over-year[130]. - The company reported a net loss of $13,471 thousand for the six months, compared to a profit of $2,674 thousand in the same period last year[130]. - The group recorded a net loss attributable to equity holders of approximately $13.6 million for the six months ended June 30, 2021, compared to a profit of $2.7 million in the same period of 2020, driven by reduced sales volume due to COVID-19 restrictions[80]. - The average selling price of hard coking coal increased to $142.7 per ton in the first half of 2021, up from $122.0 per ton in the same period of 2020[65]. Operational Highlights - In the first half of 2021, the UHG mine produced 2.7 million tons of raw coal, while the BN mine produced 0.5 million tons, with stripping ratios of 6.5 and 8.0 cubic meters per ton respectively[50]. - The coal processing plant processed a total of 2.7 million tons of raw coking coal, yielding 1.3 million tons of washed coking coal and 0.5 million tons of washed thermal coal, with output rates of 49.0% and 16.6% respectively[51]. - The throughput of coal trucks at the GS-GM checkpoint decreased by 81% quarter-on-quarter in Q2 2021, significantly impacting coal export operations[54]. Shareholder and Governance Information - The company emphasizes corporate governance as a cornerstone of its management and operations[9]. - The company has adopted the corporate governance code as per the listing rules, confirming compliance as of June 30, 2021[110]. - The company’s directors and senior executives have disclosed their interests in shares and related securities as required by the Securities and Futures Ordinance[111]. Future Outlook and Strategic Initiatives - The company plans to expand its market presence by increasing exports to neighboring countries, targeting a 20% growth in export volume by the end of 2021[196]. - New technology initiatives are underway, focusing on improving mining efficiency and reducing operational costs by 10% through automation and advanced analytics[197]. - Future guidance indicates a positive outlook for the second half of 2021, with anticipated revenue growth of 30% driven by increased production and favorable market conditions[196].
MONGOL MINING(00975) - 2021 - 中期财报