Coal Export and Production - Mongolian Mining Corporation reported a coal export volume of 8.1 million tons to China in the first half of 2022, a decrease of 15.6% compared to 9.6 million tons in the same period of 2021[35]. - The company faced a 9.6% year-on-year decline in coal exports to China, totaling 7.5 million tons in the first half of 2022[35]. - China's coking coal imports increased by 17.0% year-on-year to 26.1 million tons in the first half of 2022, compared to 22.3 million tons in the same period of 2021[35]. - The Chinese steel industry experienced a 6.5% year-on-year decline in crude steel production, totaling 526.9 million tons in the first half of 2022[35]. - In the first half of 2022, the UHG mine produced 0.9 million tons of raw coal, with a stripping ratio of 6.2 cubic meters per ton of raw coal[55]. - The company processed 0.9 million tons of raw coking coal from the UHG mine, yielding 0.4 million tons of washed coking coal and 0.2 million tons of washed thermal coal[55]. - Coal exports to China in the first half of 2022 amounted to 0.8 million tons, including 0.7 million tons of hard coking coal and 0.1 million tons of semi-soft coking coal[61]. - The throughput of coal trucks through the GS-GM checkpoint increased by 21% compared to the same period in 2021[59]. Financial Performance - In the first half of 2022, the company sold approximately 0.9 million tons of coal, generating total revenue of approximately $106.5 million, compared to $95.2 million from 0.8 million tons in the same period of 2021, representing a year-on-year revenue increase of 11.4%[66]. - The average selling price of hard coking coal under GM truck delivery terms was $161.7 per ton, while the average selling price under GM destination delivery terms was $144.3 per ton, and $126.1 per ton under UHG factory delivery terms[66]. - The company recorded idle costs of $24.4 million in the first half of 2022, with $10.6 million attributed to depreciation and amortization, compared to $2.5 million in idle costs in the same period of 2021[67]. - Total cost of revenue increased to $126.4 million in the first half of 2022, up from $70.5 million in the same period of 2021, primarily due to increased royalties and transportation costs[67]. - The company reported a gross loss of $19.9 million for the six months ended June 30, 2022, compared to a gross profit of $24.6 million in the same period of 2021, primarily due to increased transportation costs and royalties[77]. - Adjusted LBITDA for the reporting period was approximately $8.7 million, a significant decrease from the adjusted EBITDA of $37.9 million recorded in the same period of 2021[78]. - The loss attributable to equity holders for the six months ended June 30, 2022, was approximately $32.4 million, an increase from $13.6 million in the same period of 2021, driven by decreased sales volume and increased costs[83]. - The company recorded a net loss of $41.664 million for the six months ended December 31, 2021, compared to a net loss of $13.574 million for the same period in 2021[139]. Resource and Mining Operations - The company operates two open-pit coal mines in Mongolia, Ukhaa Khudag and Baruun Naran, contributing to its position as the largest producer and exporter of high-quality coking coal in Mongolia[2]. - The company holds a mining license for the Ukhaa Khudag (UHG) deposit covering an area of 2,960 hectares, effective from August 29, 2006, for a period of 30 years, renewable twice for 20 years each[38]. - As of December 31, 2021, the total coal resources at UHG are estimated at 572 million tons, comprising 474 million tons of proven and 30 million tons of probable resources, with an additional 68 million tons inferred[40]. - The recent resource update at UHG involved 89 drill holes totaling 16,935 meters and the collection of 6,108 samples, enhancing the accuracy of the 3D coal seam model[38]. - The Baruun Naran (BN) deposit has two mining licenses covering 4,482 hectares and 8,340 hectares, respectively, both valid for 30 years and renewable twice for 20 years each[42]. - The BN deposit's resource update as of December 31, 2021, is based on 8,335.4 meters of drilling data and 3,766 samples, moving inferred and probable resources to the proven category[42]. - The total drilling at BN included 135 exploration drill holes totaling 36,875 meters, with various core sizes utilized[42]. - The company has conducted a total of 1,645 individual drill holes at UHG, totaling 208,211 meters, with 43,656 samples analyzed[39]. Health, Safety, and Environmental Impact - The total recordable injury frequency was 0.0 incidents per million hours worked, maintaining a rolling average of 0.21 incidents per million hours over the past 12 months[62]. - The company has implemented strict health and safety measures, resulting in zero lost time injuries during the reporting period[62]. - The company achieved a lost time injury frequency rate of 0.0 incidents per million hours worked in the first half of 2022, a significant improvement from 1.42 incidents recorded in the same period of 2021[102]. - The company did not experience any environmental incidents in the first half of 2022, maintaining a focus on occupational health, safety, and environmental training[63]. - Dust levels measured in the mining area decreased by 50% compared to the same period last year[104]. - The company successfully planted over 2,000 Tooroi tree seedlings with a survival rate of approximately 95% as part of its biodiversity action plan[104]. - The company provided approximately 5,600 tons of coal to local herders and communities during the harsh winter months[103]. Corporate Governance and Shareholder Information - The company has adopted the corporate governance code and has complied with all applicable provisions during the six months ending June 30, 2022[110]. - No violations of the employee written guidelines regarding insider trading were reported during the reporting period[109]. - As of June 30, 2022, the company had a total of 323,492,188 shares held by MCS Mining Group LLC, representing approximately 31.03% of the issued share capital[115]. - The total shares held by major shareholders include Batmunkh Dashdeleg and Munkhsuren Surenkhuu, with combined holdings of 369,656,942 shares, representing approximately 35.46% of the issued share capital[115]. - The company has confirmed compliance with the standards of the securities trading code as of June 30, 2022[109]. - The company did not recommend the payment of dividends for the six months ended June 30, 2022, consistent with the previous year[96]. Strategic Initiatives and Future Outlook - The company is focused on becoming a leading mining company in the region by maximizing value for shareholders and local communities[18]. - The company is exploring strategic partnerships and joint ventures to expand and diversify its business operations in Mongolia[65]. - The company has implemented measures to ensure liquidity, including the continued pre-sale of coal products amid disruptions in export transportation[64]. - The company has not identified any other individuals with interests or short positions in the company's shares or related securities as of June 30, 2022[116]. - The company has no significant investments planned for the upcoming year[93].
MONGOL MINING(00975) - 2022 - 中期财报