MONGOL MINING(00975) - 2022 - 年度财报

Company Overview - Mongolian Mining Corporation is the largest producer and exporter of high-quality washed hard coking coal in Mongolia, operating the Ukhaa Khudag and Baruun Naran mines[3]. - The company’s mission is to operate a safe and profitable mining and mineral processing business while promoting the development of Mongolia[4]. Corporate Governance - The board of directors includes Odjargal Jambaljamts as the chairman and Battsengel Gotov as the CEO, with a strong emphasis on corporate governance and compliance with international best practices[10]. - The board consists of eight members, including two executive directors, three non-executive directors, and three independent non-executive directors[176]. - The company has maintained compliance with listing rules by appointing at least three independent non-executive directors, constituting one-third of the board[180]. - Independent non-executive directors play a crucial role in providing independent judgment and ensuring high standards of governance[183]. - The company has established a diversity policy for the board and aims to set measurable objectives for achieving board diversity[193]. Financial Performance - The company recorded a profit attributable to equity holders of approximately $59.2 million in 2022, reversing from a loss of$ 55.2 million in 2021[21]. - The company’s revenue surged by 197% to $546.2 million in 2022, compared to the previous year's revenue[21]. - The total cost of revenue for 2022 was$ 451.1 million, up from $161.5 million in 2021, primarily due to increased sales volume and rising supply costs[61]. - The group's gross profit for the year ended December 31, 2022, was approximately$ 95.1 million, a significant increase from $22.6 million for the year ended December 31, 2021[70]. - The net cash generated from operating activities for the year ended December 31, 2022, was$ 233.8 million, up from $84.9 million in 2021[77]. Operational Highlights - In 2022, the total sales volume of the company's coal products reached 4.7 million tons, a 194% increase from 1.6 million tons in the previous year[21]. - The company processed a total of 6.6 million tons of raw coking coal in 2022, producing 3.0 million tons of washed coking coal and 1.2 million tons of washed thermal coal[51]. - The company exported 4.2 million tons of coal to China in 2022, with 3.5 million tons transported through GS-GM[54]. - The company plans to expand production and sales of UHG and BN coking coal mines to pre-pandemic levels following the lifting of restrictions in 2023[21]. Environmental Commitment - The company aims to achieve sustainable growth and development through modern and cost-effective technology, focusing on safety and minimizing environmental impact[5]. - The company is committed to fulfilling its responsibilities towards safety, environment, and business operations in society[21]. - The company has implemented strict air quality control measures to comply with Mongolian regulatory requirements, including regular monitoring of emissions from its power plants[122]. - The company has established an Environmental, Social, and Governance (ESG) management committee led by the CEO, consisting of nine representatives, to oversee ESG performance and identify emerging risks and opportunities[119]. Community Engagement - The company is committed to building mutually beneficial relationships with local communities and government officials, contributing to social development through community initiatives[5]. - The company has established a community complaint handling platform to allow local community members to freely raise complaints and grievances[158]. - The company has been recognized as one of Mongolia's top five enterprises for eleven consecutive years due to its socio-economic contributions[115]. Employee Relations - The company emphasizes the importance of talent as a key resource and provides fair employment opportunities under a leadership structure[5]. - The company spent over 96 billion Tugrik on employee salaries, bonuses, and benefits in 2022, providing 10 to 20 different types of benefits and allowances[152]. - The overall employee turnover rate for the group was 33% in 2022, with a turnover rate of 21% for female employees and 36% for male employees[152]. - Female employees represent 15% of the workforce, exceeding the national industry average of 10%[155]. Safety and Training - The company recorded a lost time injury frequency rate of 0.43 per million hours worked in 2022, compared to 0.00 in 2021[54]. - The company conducted 12,434 individual training sessions totaling 61,847 hours on occupational health, safety, and environment in 2022[54]. - A total of 5,932 employees participated in various professional training programs, with 4,925 employees receiving occupational health and safety training[163]. Climate and Sustainability Initiatives - The company plans to redefine its sustainability goals to align with the United Nations Sustainable Development Goals[113]. - The company has been tracking and reporting its Scope 1 and Scope 2 greenhouse gas emissions since 2017 and began tracking Scope 3 emissions in 2019, with plans to report all 15 categories of Scope 3 emissions[123]. - The company has committed to planting 40 million trees in the UHG and BN mining areas by 2030 as part of its environmental initiatives[144]. Risk Management - The company has implemented a risk management policy and internal control procedures, reviewed annually by management and the board[157]. - The company closely monitors credit risk, with a focus on the current payment capacity of customers and the economic environment[79]. Strategic Partnerships - A strategic alliance and investment agreement was signed with Erdene Resource Development Corporation to advance the Bayan Khundii gold project from exploration to production[21]. - The company entered into an investment agreement to acquire 50% of Erdene Mongol LLC for a total consideration of$ 40.0 million, with an initial payment of $5.0 million made in January 2023[85].