Mongolian Mining Stock Price, News & Analysis

Mongolian Mining Corporation (OTCQX: MOGLF; HKEx: 975) is a mining company with operations focused on and located in Mongolia. According to the company’s public announcements, it is described as the largest internationally listed private mining company operating in Mongolia, with a business portfolio that includes coking (metallurgical) coal, gold, copper and other non-ferrous metals assets in the southern and western regions of the country.

The company’s core business is coking coal. Mongolian Mining Corporation states that it is the largest producer and exporter of washed hard coking coal in Mongolia. Through its subsidiaries, it owns and operates two open-pit coking coal mines: the Ukhaa Khudag mine, located within the Tavan Tolgoi coal formation, and the Baruun Naran mine. These operations are located in Umnugobi aimag (province) in the South Gobi region of Mongolia.

Coking coal operations

The group’s coking coal activities are conducted mainly through Energy Resources LLC, a wholly owned subsidiary that operates the Ukhaa Khudag coking coal mine, and Khangad Exploration LLC, a majority-owned subsidiary that operates the Baruun Naran coking coal mine. Company disclosures describe Mongolian Mining Corporation as the largest producer and exporter of washed coking coal products in Mongolia.

The group extracts run-of-mine coking coal from its open-pit mines and processes this material into washed coking coal products. Public operational updates report run-of-mine coal volumes, processed coal volumes, and washed coking coal production and sales, and distinguish between different washed coking coal product types, such as washed hard coking coal, washed semi-soft coking coal and washed mid-ash semi-hard coking coal.

Gold and metals portfolio

Beyond coal, Mongolian Mining Corporation reports that it has consolidated a diversified business portfolio to develop and operate gold, copper and other non-ferrous metals mining assets. The group is a 50% equity holder in Erdene Mongol LLC, which owns and operates the Bayan Khundii gold mine located in Bayankhongor aimag (province), Mongolia. Company announcements state that commercial gold production at Bayan Khundii was launched following completion of construction and commissioning of the gold processing plant and related site support facilities.

The Bayan Khundii mine is described in public disclosures as having a defined gold reserve and an installed processing capacity designed to handle ore and produce gold annually, based on feasibility studies prepared for the project. Gold produced from Bayan Khundii is sold to the Bank of Mongolia and authorised commercial banks, with prices calculated using spot prices denominated in local currency and applicable exchange rates, according to the company’s operational updates.

In addition, Mongolian Mining Corporation has reported acquiring a majority interest in Universal Copper LLC, a company engaged in the exploration of copper and other non-ferrous metals and holding mineral exploitation permits in Bayankhongor aimag. This forms part of the group’s stated strategy to expand and diversify its portfolio into metals beyond coal.

Listing and corporate background

Mongolian Mining Corporation is incorporated in the Cayman Islands with limited liability. The company’s shares are listed on The Stock Exchange of Hong Kong Limited under stock code 975, and its equity is also quoted on the OTCQX market in the United States under the symbol MOGLF. The company has stated in its announcements that it aims to maintain an adequate capital structure and to support regional infrastructure development as part of its operational focus.

According to its public communications, the group emphasises scaling up production and sales through optimal utilisation of its mining and processing assets, while pursuing business expansion and diversification by investing in gold, copper and other non-ferrous metals projects in Mongolia.

Business focus and strategy

Company statements describe a business model centred on mining, processing and selling washed coking coal products from its Mongolian operations, complemented by the development and operation of gold and other metals projects. The group’s coal segment is characterised by open-pit mining, processing of run-of-mine coal into washed products, and export of washed coking coal products. The metals segment involves ownership interests in gold and copper projects, including the Bayan Khundii gold mine and exploration and exploitation permits held through subsidiaries and joint venture entities.

In its public results and operational updates, Mongolian Mining Corporation has linked this diversification into gold and other metals to its long-term growth plans and portfolio development, while continuing to highlight its role in Mongolia’s coking coal industry.

Role within Mongolia’s resources sector

Across multiple announcements, Mongolian Mining Corporation describes itself as the largest internationally listed private mining company with operations in Mongolia and as the largest producer and exporter of washed hard coking coal in the country. Its operations are concentrated in key resource regions such as the Tavan Tolgoi coal formation in South Gobi and gold- and copper-bearing areas in Bayankhongor aimag.

Through its coal, gold and metals activities, the group positions itself, in its own disclosures, as an important participant in Mongolia’s mining sector. For example, it notes that gold from Bayan Khundii is sold to Mongolia’s central bank at spot prices, which it states contributes to the country’s foreign currency reserves and economic stability.

Frequently Asked Questions

• What does Mongolian Mining Corporation do?
  According to its public announcements, Mongolian Mining Corporation is a mining company with operations in Mongolia, focused on developing and operating coking (metallurgical) coal, gold, copper and other non-ferrous metals mining assets.
• Where are Mongolian Mining Corporation’s main operations located?
  Company disclosures state that its operations are focused on and located in Mongolia, with coking coal mines in Umnugobi aimag (province) in the South Gobi region and gold and metals projects in Bayankhongor aimag (province).
• What are the company’s principal coal assets?
  Public information from the company identifies two open-pit coking coal mines: the Ukhaa Khudag mine within the Tavan Tolgoi coal formation and the Baruun Naran mine, both in Umnugobi aimag, Mongolia.
• How does Mongolian Mining Corporation describe its position in the coking coal market?
  In its announcements, the company states that it is the largest producer and exporter of washed hard coking coal in Mongolia and the largest producer and exporter of washed coking coal products in the country.
• What is the Bayan Khundii gold mine?
  The Bayan Khundii gold mine is a project in Bayankhongor aimag, Mongolia, held through Erdene Mongol LLC, in which Mongolian Mining Corporation has a 50% equity interest. Company updates report that construction and commissioning of the processing plant and facilities have been completed and that commercial gold production has commenced.
• How is Mongolian Mining Corporation involved in copper and other metals?
  According to its operational updates, the group holds a majority interest in Universal Copper LLC, which is engaged in exploration of copper and other non-ferrous metals and holds mineral exploitation permits in Bayankhongor aimag.
• On which exchanges is Mongolian Mining Corporation listed?
  The company states that it is listed on The Stock Exchange of Hong Kong Limited under stock code 975 and that its shares are quoted on the OTCQX market under the symbol MOGLF.
• What corporate structure does Mongolian Mining Corporation have?
  Public filings describe Mongolian Mining Corporation as incorporated in the Cayman Islands with limited liability and operating through a group structure that includes wholly owned, majority-owned and jointly owned subsidiaries.
• How does the company describe its growth strategy?
  In its results announcements, the company refers to a focus on scaling up production and sales from its coal operations, maintaining a prudent financial policy and diversifying its business portfolio and revenue sources by investing in gold, copper and other non-ferrous metals projects in Mongolia.
• When did Mongolian Mining Corporation list on the Hong Kong Stock Exchange?
  Company announcements state that Mongolian Mining Corporation was listed on The Stock Exchange of Hong Kong Limited in October 2010.