Mongolian Mining Corporation — Earnings Release 2020

Jul 21, 2020

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MONGOLIAN MINING CORPORATION

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 975)

OPERATIONAL UPDATE FOR THE QUARTER ENDED 30 JUNE 2020

The COVID-19 virus outbreak since early 2020 has brought certain uncertainties in the Group’s operating environment. The Group has been closely monitoring the impact of the developments on the Group’s businesses and has put in place contingency measures, such as temporary adjustment to levels of production. The Group will keep contingency measures under review as the situation evolves.

The board of directors (the “ Board ”) of Mongolian Mining Corporation (the “ Company ”, together with its subsidiaries, collectively the “ Group ”) wishes to announce the unaudited operational update for the quarter ended 30 June 2020. The comparative figures for the quarter ended 30 June 2019 and the quarter ended 31 March 2020 are also disclosed in this announcement.

Due to the evolving border throughput situation during the quarter ended 30 June 2020, the Group’s run-of-mine (“ ROM ”) coal mining output was adjusted to 614.4 thousand tonnes (“ kt ”), representing 76% year-on-year (“ YoY ”) decrease compared to the corresponding period ended 30 June 2019 and 66% quarter-on-quarter (“ QoQ ”) decrease compared to the previous quarter ended 31 March 2020.

A total of 721.6 kt of ROM coking coal was processed to produce 356.7 kt of washed coking coal, representing 68% YoY decrease compared to the corresponding quarter in the previous year. This represents 52% QoQ decrease compared to the previous quarter ended 31 March 2020.

The Group sold a total of 734.1 kt of washed coking coal products in the second quarter of 2020, which represents 44% YoY decrease compared to the corresponding period of 2019. This represents 21% QoQ increase compared to the previous quarter ended 31 March 2020.

The main operational data summarized and shown below in Table 1 are derived from the internal records of the Group and are intended to give investors an overview of the Group’s operations in a timely manner and may differ from the data disclosed in periodic reports of the Company.

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Table 1. Main operational data for the quarter ended 30 June 2020:

		The quarter	The quarter	YoY	The quarter	QoQ
		ended 30	ended 30	change	ended 31	change
Item	Unit	June 2020	June 2019	(%)	March 2020	(%)
ROM coal mined	kt	614.4	2,570.6	-76%	1,819.9	-66%
ROM coking coal processed	kt	721.6	2,238.3	-68%	1,495.2	-52%
Washed coking coal produced	kt	356.7	1,127.9	-68%	740.7	-52%
Washed coking coal sold	kt	734.1	1,317.8	-44%	607.7	+21%

The aforesaid operational data are not an express or implied forecast or guarantee in respect of the Company’s future operating conditions.

In addition, various factors may affect results, including (but not limited to) force majeure events, changes in market conditions and regulatory interferences, as such material differences may exist in the operational data published from quarter to quarter.

Investors should note that undue reliance on or use of the above information may cause investment risks.

For and on behalf of the Board Mongolian Mining Corporation Odjargal Jambaljamts Chairman

Hong Kong, 21 July 2020

As at the date of this announcement, the board of directors of the Company consists of Mr. Odjargal Jambaljamts and Dr. Battsengel Gotov, being the executive directors of the Company, Mr. Od Jambaljamts, Ms. Enkhtuvshin Gombo and Mr. Enkhtuvshin Dashtseren, being the non-executive directors of the Company, and Dr. Khashchuluun Chuluundorj, Mr. Unenbat Jigjid and Mr. Chan Tze Ching, Ignatius, being the independent non-executive directors of the Company.

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