Source: easy Coal Information

According to the release of Mongolian miner South Gobi Resources Company (SouthGobi Resources)Shamrock7videopokerAccording to the company's annual operating report, the company sold 3.59 million tons of coal in 2023, an increase of 223% over the same period last year.

Of these, sales of high-quality semi-soft coking coal were 2.08 million tons, up 670 percent over the same period last year; sales of standard semi-soft coking coal / high-quality thermal coal were 530000 tons, up 563 percent over the same period last year; and sales of washing coal were 980000 tons, up 29 percent over the same period last year.

According to the report, the company's product portfolio in 2023 includes about 58% of high-quality semi-soft coking coal, 15% of standard semi-soft coking coal / high-quality thermal coal and 27% of washed coal, while in 2022 the product mix is about 25% of high-quality semi-soft coking coal, 6% of standard semi-soft coking coal / high-quality thermal coal and 69% of washed coal.

In addition, according to the report, the company's raw coal production in 2023 was 4.05 million tons, an increase of 487% over the same period last year.

At the end of 2022, the company resumedShamrock7videopokerMajor mining operations, including coal mining, have been carried out, and coal production has gradually increased since then. The company also resumed coal washing business in April 2023. According to the market demand, South Gobi Resources Co., Ltd. mixed some high ash coal into the semi-soft coking coal products and sold them to the market as clean coal.

The report shows that in 2023, South Gobi Resources achieved revenue 3.Shamrock7videopoker0.3 billion US dollars, an increase of 35.4% over the same period last year. The reasons for the growth include: (1) the export volume of coal through Zeke port has gradually increased since the second quarter of 2023; (2) the average selling price of the company's coal has increased from 65% in 2022.Shamrock7videopoker.7 US dollars per ton rose to 93.0 US dollars per ton in 2023.

Thanks to increased sales and higher average coal prices, the company made an operating profit of $75.87 million in 2023, up 459 per cent from a year earlier. In addition, the net profit was $908000, compared with a loss of $30.419 million in the same period last year.

South Gobi Resources has been expanding its mining operations in 2023 and has resumed wet washing operations since April 2023. The gradual increase in production has led to an increase in coal exports to China and a significant improvement in the company's cash flow in 2023.

South Gobi Resources Company pointed out in the report that the governments of China and Mongolia have played an important role in strengthening coal trade relations between the two countries. The development of new cross-border railways, the expansion of road infrastructure, the deployment of automation technologies in export operations and the simplification of customs clearance highlight concerted efforts to promote cross-border trade. These strategic measures put Mongolian coal in a favorable position in China's changing coal import dynamics.

South Gobi Resources said it would continue to expand its mining operations and production capacity in 2024 to take advantage of expected sales growth.

The company points out that it is cautiously optimistic about China's coal market, as coal is still considered to be the main source of energy that China will continue to rely on for the foreseeable future. Due to increasingly stringent requirements for environmental protection and production safety, China's coal supply and imports are expected to be limited, which could lead to fluctuations in coal prices in the Chinese market. The company will continue to monitor and actively respond to dynamic markets.

In the medium term, SouthGobi Resources said it will continue to adopt various strategies to enhance its product portfolio to maximize revenue, expand its customer base and sales network, improve logistics, optimize its operating cost structure and, most importantly, operate in a safe and socially responsible manner.

In the long run, SouthGobi Resources will continue to focus on creating and maximizing shareholder value by leveraging its key competitive advantages.

It is reported that South Gobi Resources owns and operates the Ovoot Tolgoi Coal Mine (Ovoot Tolgoi) in Mongolia. It also holds mining licenses for other metallurgical and power coal deposits in the South Gobi region of Mongolia. The company sells coal to Chinese customers.

Source: Mongolian miner South Gobi Resources Co., Ltd.