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Operating Results
In response to the increase in Coronavirus Disease 2019 (“COVID-19”)
case numbers in Mongolia in the second quarter of 2021, the Chinese
authorities has been restricting the number of trucks permitted to cross
the Ceke port of entry, and such restriction has severely impacted the
sales volume of the Company in the second quarter of 2021. As a result,
the Company’s sales volume decreased from 0.5 million tonnes in the
second quarter of 2020 to 0.1 million tonnes in the second quarter of
2021.
In response to the restrictions on the number of trucks crossing the
Mongolian border into China, the Company temporarily suspended its major
mining operations (including coal mining) in the second quarter of 2021
in order to control the inventory level and preserve the Company’s
working capital. Such suspension remains in effect as of the date of
this press release. Management expects that mining operations (including
coal mining) will resume in the third quarter of 2021.
The Company experienced an increase in the average selling price of coal
from $31.7 per tonne in the second quarter of 2020 to $47.9 per tonne in
the second quarter of 2021, as a result of improved market conditions in
China and an improvement of the overall product mix.
Table 1: Summary of Operational Data
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Three months ended |
Six months ended |
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30-Jun-21 |
30-Jun-20 |
30-Jun-21 |
30-Jun-20 |
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Sales Volumes, Prices and Costs |
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Premium semi-soft coking coal |
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Coal sales (millions of tonnes) |
0.08 |
0.21 |
0.48 |
0.28 |
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Average realized selling price (per tonne) |
$52.11 |
$28.69 |
$48.56 |
$28.63 |
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Standard semi-soft coking coal/premium thermal coal |
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Coal sales (millions of tonnes) |
0.03 |
0.26 |
0.26 |
0.39 |
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Average realized selling price (per tonne) |
$36.71 |
$33.12 |
$35.35 |
$32.98 |
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Standard thermal coal |
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Coal sales (millions of tonnes) |
– |
– |
– |
– |
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Average realized selling price (per tonne) |
$– |
$– |
$– |
$– |
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Washed coal |
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Coal sales (millions of tonnes) |
– |
0.02 |
0.01 |
0.02 |
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Average realized selling price (per tonne) |
$– |
$43.26 |
$49.75 |
$43.26 |
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Total |
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Coal sales (millions of tonnes) |
0.11 |
0.49 |
0.75 |
0.69 |
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Average realized selling price (per tonne) |
$47.93 |
$31.66 |
$44.10 |
$31.52 |
|
Raw coal production (millions of tonnes) |
– |
– |
1.04 |
0.01 |
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Cost of sales of product sold (per tonne) |
$41.38 |
$21.16 |
$30.53 |
$23.82 |
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Direct cash costs of product sold (per tonne) (i) |
$16.39 |
$9.90 |
$17.89 |
$10.42 |
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Mine administration cash costs of product sold (per tonne) (i) |
$4.26 |
$1.70 |
$1.51 |
$1.93 |
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Total cash costs of product sold (per tonne) (i) |
$20.65 |
$11.60 |
$19.40 |
$12.35 |
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Other Operational Data |
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Production waste material moved (millions of bank cubic meters) |
– |
– |
5.04 |
0.57 |
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Strip ratio (bank cubic meters of waste material
per tonne of coal produced) |
– |
– |
4.83 |
85.08 |
|
Lost time injury frequency rate (ii) |
0 |
0.04 |
0 |
0.06 |
Source:
official document |
(To contact the reporter on this story: jemma.shang@steelhome.cn or 86-555-2238875 18155520624) |
