Is getting so bullish lately its crazy. This tailwind is, imho, almost as important as the profits southgobi can achieve.
1-mongolian diplomats have been in Europe finalizing coop agreements for trade and resources development. Also getting direct flights into capital from Europe soon. This is not a new story but a 20 year old one whereby foreign companies have been looking to tap the country's resources potential which is vast. Finally mongolia is keen to accelerate its development and there are lots of resource companies who want to be in mongolia assuming the govt would cooperate
2-mongolia economy grew at 7% last year and has continued its frantic pace in jan 2024 fueled by coal and copper and gold. Mongolia is one of the fastest growing economies in the world.
3-china has mandated that coal mines from shanxi region cut production for 2024 to improve safety. This is huge for sgq. This will amount to huge cuts in 2024 production from an area that contains 1/3 of chinas coal mines.
4- coal prices in china spiked yesterday on low supplies in northern coal hubs. This is also massive for sgq.
5-bhp mentioned mongolia as a threat to their coal exports from Australia in their earnings report this week.
i could go on and on but the sgq shares on hk exchange are trading at a new 52 wk high tonight and is trading at a cdn equivalent of 0.95$ cad.
lets get this longs. Glta