Mongolian Mining (975) H2 2024 earnings summary

Executive summary

• Revenue reached USD1,039.9 million in 2024, up slightly from USD1,034.8 million in 2023, with profit attributable to equity shareholders at USD242.0 million, compared to USD239.7 million last year.

• Adjusted EBITDA was USD495.9 million, down from USD509.0 million in 2023.

• No dividend was declared for 2024, consistent with the prior year.

• Major developments included the acquisition of a 50% stake in Erdene Mongol LLC (EM), making it a subsidiary, and the disposal of a 20% stake in Khangad Exploration LLC (KEX), which remains a subsidiary.

Financial highlights

• Gross profit was USD411.7 million, down from USD441.6 million in 2023.

• Basic and diluted EPS were USD22.12 cents and USD21.77 cents, respectively, compared to USD21.95 cents in 2023.

• Cost of revenue increased to USD628.2 million from USD593.2 million, mainly due to higher mining and transportation costs.

• Net finance costs decreased to USD33.1 million from USD40.1 million, driven by lower interest expenses and foreign exchange losses.

• Cash and cash equivalents at year-end were USD140.5 million, down from USD175.8 million.

Outlook and guidance

• Gold production at the BKH mine is expected to commence in the second half of 2025, with a projected LOM output of 476 Koz.

• The company aims to maintain a prudent capital structure, scale up production, and explore strategic expansion opportunities.