Mongolian Mining Corp. (MOGLF)

[volmi6]

The Group's gross profit was nearly US$130 million, up 20.1% YoY, while shareholders' share of profit was US$47.1 million, up 59.4% YoY. MMC chief executive Battsengel Gotov said earnings growth was higher than revenue due to higher sales and basically stable production costs. The group's main customers are from the mainland regions of Inner Mongolia and Gansu, where he says demand for high-quality coal mines has increased as a result of increased environmental controls in the mainland. As for the trend of coal prices is expected to remain stable.

The rail network, which runs through Mongolia and Inner Mongolia, said it expected to open in 2021, when it would address the current bottleneck of transporting coal only by truck, increasing transport capacity to China by 30 million tonnes, while transport costs were expected to be cut in half and the group would benefit significantly.