Mongolian Mining (975) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was USD346.6 million, down 35.9% year-over-year due to lower average selling prices and weaker market sentiment, with 4.2 Mt of coal sold.

• Net loss attributable to equity shareholders was USD23.3 million, compared to a profit of USD133.0 million in the prior year, mainly due to lower ASP and a one-off USD25.0 million loss from debt refinancing.

• Adjusted EBITDA was USD94.1 million, down from USD270.1 million in the first half of 2024.

• The company completed the acquisition of a 50.5% stake in Universal Copper LLC and advanced the BKH gold mine to first gold pour in September 2025.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit declined to USD62.9 million from USD223.8 million year-over-year.

• Blended average selling price for coking coal decreased to USD82.0/t in H1 2025 from USD128.9/t in H1 2024.

• Net finance costs increased to USD27.2 million, mainly due to higher foreign exchange losses.

• Cash and cash equivalents at period end were USD219.7 million.

• Gearing ratio rose to 17.0% from 9.6% a year earlier.

Outlook and guidance

• Commercial gold production at BKH mine is expected to commence in Q3 2025, with nameplate ore feed capacity of 650,000 tonnes per annum and projected gold output of 29 Koz in 2025 and 85 Koz in 2026.

• Strategic focus remains on prudent capital structure, scaling production, infrastructure development, and business diversification.