Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/mongolian-mining-corp" target="_blank" data-smartkarma-citation="entities:4382:1" rel="noopener">Mongolian Mining (975 HK)</a> disclosed its fiscal year 2024 results, which exceeded market expectations marginally, showing YoY increases in revenue and profits of 0.4% and 1.2%, respectively.</li>
<li>The company indicated that the Working Group formed under Prime Minister's Order No. 32 encompasses all national miners, not just MMCs alone. </li>
<li>Mining Law 5.4 may result in the government taking a 50% stake in the mining companies whose deposits were state-funded or increasing the mining royalty nationwide. </li>
</ul>



Mongolian Mining (975 HK) disclosed its fiscal year 2024 results, which exceeded market expectations marginally, showing YoY increases in revenue and profits of 0.4% and 1.2%, respectively.
The company indicated that the Working Group formed under Prime Minister's Order No. 32 encompasses all national miners, not just MMCs alone. 
Mining Law 5.4 may result in the government taking a 50% stake in the mining companies whose deposits were state-funded or increasing the mining royalty nationwide. 


Mongolia Mining 975 HK: FY24 Results and Concall, Some Clarity Provided On The Mining Issue

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<li>Potentially damaging negative news has emerged in <a href="https://www.smartkarma.com/entities/mongolian-mining-corp" target="_blank" data-smartkarma-citation="entities:4382:1" rel="noopener">Mongolian Mining (975 HK)</a> that could possibly result in the suspension of its mine or a review of conditions on the lease agreement.</li>
<li>Prime Minister's Order No. 32 established a Working Group to assess the mining license for the Tavan Tolgoi coal deposit and review earlier parliamentary and government resolutions.</li>
<li>As the issue has become political, we are unsure about the outcome of this review and would stay on the sidelines until a firm resolution is reached. </li>
</ul>


Potentially damaging negative news has emerged in Mongolian Mining (975 HK) that could possibly result in the suspension of its mine or a review of conditions on the lease agreement.
Prime Minister's Order No. 32 established a Working Group to assess the mining license for the Tavan Tolgoi coal deposit and review earlier parliamentary and government resolutions.
As the issue has become political, we are unsure about the outcome of this review and would stay on the sidelines until a firm resolution is reached. 


Mongolia Mining (975 HK): Left Field Negative Catalyst

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<span><a href="https://www.smartkarma.com/entities/mongolian-mining-corp" target="_blank" rel="noopener">Mongolian Mining (975 HK)</a> reported its <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0117/2025011700604.pdf" target="_blank" rel="noopener">production update</a>, which is in line with our estimates for 7.9 million tons of washed coal sold for FY24.</span> </li>
<li><span>The company commenced <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0116/2025011600922.pdf" target="_blank" rel="noopener">buybacks</a>, purchasing 0.26% of its outstanding shares at 6.65 HKD/share. We believe the company will also <a href="https://www.smartkarma.com/insights/mongolia-mining-corp-975-hk-play-on-coking-coal-price-with-growth-optionality" target="_blank" rel="noopener">announce a dividend</a> in its upcoming results. </span></li>
<li>After the massive correction in share price owing to a weaker coking coal price, the stock trades at 4.2x PE, 1.9x EV-EBITDA, and a 7-10% dividend yield (30-50% payout ratio). </li>
</ul>



Mongolian Mining (975 HK) reported its production update, which is in line with our estimates for 7.9 million tons of washed coal sold for FY24. 
The company commenced buybacks, purchasing 0.26% of its outstanding shares at 6.65 HKD/share. We believe the company will also announce a dividend in its upcoming results. 
After the massive correction in share price owing to a weaker coking coal price, the stock trades at 4.2x PE, 1.9x EV-EBITDA, and a 7-10% dividend yield (30-50% payout ratio). 


Mongolia Mining (975 HK): Q4 2024 Operational Updates and Commencement of Buybacks

<ul>
<li>Following our piece, <a href="https://www.smartkarma.com/insights/fushan-energy-639-hk-coking-coal-prices-to-strengthen-with-anglo-accident" target="_blank" data-smartkarma-citation="insights:150683" rel="noopener">Fushan Energy (639 HK): Coking Coal Prices To Strengthen With Anglo Accident</a>, we highlight <a href="https://www.smartkarma.com/entities/mongolian-mining-corp" target="_blank" data-smartkarma-citation="entities:4382:1" rel="noopener">Mongolian Mining (975 HK)</a> as another play with growth potential. </li>
<li>With a market capitalization of 1.1 bn USD, it trades at 5.3x PE, trailing, and with <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0221/2024022100574.pdf" target="_blank" rel="noopener">the sale of 20% of its subsidiary KEX</a>, it is net cash. </li>
<li>Potential catalysts include the payment of a first dividend once it has redeemed the perpetual notes and the commencement of its <a href="https://erdene.com/site/assets/files/4243/erd_q3_2024.pdf" target="_blank" rel="noopener">highly accretive gold project in 2025 in Mongolia</a>. </li>
</ul>


Following our piece, Fushan Energy (639 HK): Coking Coal Prices To Strengthen With Anglo Accident, we highlight Mongolian Mining (975 HK) as another play with growth potential. 
With a market capitalization of 1.1 bn USD, it trades at 5.3x PE, trailing, and with the sale of 20% of its subsidiary KEX, it is net cash. 
Potential catalysts include the payment of a first dividend once it has redeemed the perpetual notes and the commencement of its highly accretive gold project in 2025 in Mongolia. 


Mongolia Mining Corp (975 HK): Play on Coking Coal Price With Growth Optionality

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<li>Following our insight, <a href="https://www.smartkarma.com/insights/mongolia-mining-corp-975-hk-play-on-coking-coal-price-with-growth-optionality" target="_blank" rel="noopener">Mongolia Mining Corp (975 HK): Play on Coking Coal Price With Growth Optionality, </a><a href="https://www.smartkarma.com/entities/mongolian-mining-corp" target="_blank" data-smartkarma-citation="entities:4382:1" rel="noopener">Mongolian Mining (975 HK)</a><a href="https://www.smartkarma.com/insights/mongolia-mining-corp-975-hk-play-on-coking-coal-price-with-growth-optionality" target="_blank" rel="noopener"> </a>has released its <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0722/2024072200375.pdf" target="_blank" rel="noopener">Q2 2024 operational numbers</a>. </li>
<li>For Q2, the sales of coking coal products increased by 47% YoY and for H1 by 25% YoY. HCC was only 63% of the product mix (vs 87% in H1FY23).</li>
<li>Based on our numbers, the stock trades at 5.6x FY24 PE and 2.6x EV-EBITDA. We await the H1 FY23 results and clarity on the dividend catalyst in August. </li>
</ul>


Following our insight, Mongolia Mining Corp (975 HK): Play on Coking Coal Price With Growth Optionality, Mongolian Mining (975 HK) has released its Q2 2024 operational numbers. 
For Q2, the sales of coking coal products increased by 47% YoY and for H1 by 25% YoY. HCC was only 63% of the product mix (vs 87% in H1FY23).
Based on our numbers, the stock trades at 5.6x FY24 PE and 2.6x EV-EBITDA. We await the H1 FY23 results and clarity on the dividend catalyst in August. 


Mongolian Mining (975 HK): Q2 2024 Production Impressive, Good Set Up for H1

Mongolia

Mongolian Mining Corporation produces coking coal.  The Company operates the Ukhaa Khudag mine in Mongolia.

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Mongolian Mining (975 HK)

Mongolia Mining 975 HK: FY24 Results and Concall, Some Clarity Provided On The Mining Issue

We summarize Mongolia Mining's results and key updates from the post-results conference call, which aimed to clarify concerns regarding the mining...

Sameer Taneja

Mongolia Mining (975 HK): Left Field Negative Catalyst

Read this insight to understand the implications of Mongolia's mining sector developments, including government actions on the Tavan Tolgoi coal...

Sameer Taneja

Mongolia Mining (975 HK): Q4 2024 Operational Updates and Commencement of Buybacks

We provide an operational update for Mongolia Mining's (975 HK) Q4 2024. Trading at 4.2x FY24e PE and 1.9x EV-EBITDA, we expect the stock to...

Sameer Taneja

Mongolia Mining Corp (975 HK): Play on Coking Coal Price With Growth Optionality

The company has recently released its H1 FY24, which was in line with expectations as revenues/profits were up 5%/-3% YoY. The most important...

Sameer Taneja

Mongolian Mining (975 HK): Q2 2024 Production Impressive, Good Set Up for H1

We provide an update on Mongolian Mining Corp's (975 HK) operational numbers for Q2/H1 FY24 and highlight the catalysts we await in their H1FY24...

Sameer Taneja

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