Just to play devil's advocate, it is conceivable that MMC is fairly valued at current levels.
$425M USD of debt
$195M USD of equity (perpetual debt)
$326M USD market cap (10,300M shares outstanding x 0.246HKD x $1 USD/7.77 HKD)
$946M USD enterprise value
If 3x is an appropriate EBITDA multiple for a commodity producer in a frontier market, then we're basically there on best case 2017 figures.
The market might be saying that:
1. The IMF bailout is just noise, as it really doesn't have much to do with MMC's operating prospects.
2. The increase in coking coal spot prices is a short-term blip that will normalize within a month or two, and will not accrue much benefit to MCC given production constraints.
3. Increasing Mongolian business confidence is a lagging indicator.
I think our patience may be sorely tested with this name. I'm not sure that we're going to see a re-rating of the stock price in the near term.