So far, mining companies are the only firms traded on foreign exchanges from Mongolia. Let’s examine their performance over the past year.
📈 Annual Growth: 76%
Share prices of four companies led by Mongolian Mining Corporation (0975.HK) and Energy Resources, which focus on coking coal, increase by an average of 76% over the past 1 year and 46.2% year-to-date. Among these mining giants, MMC’s shares lead in growth, with the amount of raw coal mined by the company in the third quarter increasing by 23% compared to the previous year, reaching 4.3 million tons.
🌞 The Market Where the Sun Shines the Most
China’s efforts to stabilize its steel production maintain a high demand for coking coal. As a result, coal imports are expected to reach 100 million tons in 2024, and the amount of coal imported from Mongolia in the first 10 months of the year increases by 116% compared to the same period last year. This situation positively impacts Mongolian mining companies.
Finally, Mongolia’s mining companies listed on foreign stock exchanges continue to progress. However, the MSE needs to attract more mining companies, as those with strategic mines face a pivotal decision due to new legislative requirements. By law, strategic depositors must have at least 10% of their shares publicly traded, encouraging these companies to consider listing on the MSE.
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