Mongolian Mining Corp. (MOGLF)

[mhsg]

Cashflow/generation - share your frustration, but worthy of note:
At the start of 2017, this was a company to be restructured and a mine essentially on care and maintenance. They paid +/-$35m in restructuring fees that were a one off. Working capital increased $80m as they ramped up to 8-9Mt (?) ROM (=4Mt HCC product) from negligible amounts. This $80m also included the pay down of overdue payables to the mining contractor, which will hopefully be extinguished in 2018.

So the debt restructuring fees should not repeat. The working capital impact should be less. Overdue payables to be paid off this year?
$7.5m of debt due this year, $23m next year and then nothing for close to 3 years.
Hopefully 1H results released in August will back this up

Re oxidization of coal, this occurs after 3 to 6 months. For moisture, they are trucking this through the Gobi desert and lack of moisture is more of an issue – if you sell with 10% moisture you want them to pay for water rather than coal. I reckon they had a stockpile however far larger than 200kt at the end of Q1 as production was 400kt higher than sales last year based on their Operational Updates.

Q2 exports & sales to be a record high….