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].
MONGOL MINING(00975) - 2023 - 中期财报