Whats up coal gang?…. Absolutely zero love for southgobi on the tsxv it seems.
so much going on with coal these days and the mongolian miners (southgobi 1878hk and mongolian mining corp 0975hk) are basically going parabolic on the hk exchange, both in price and volumes.
So many different issues swirling around china coal these days its a perfect storm for these companies yet they are so little talked about anywhere which imho is a good thing as it shows the herd hasn't yet caught onto this silent bull market in mongolia coal.
Mongolia sent record amounts of coal into china in q4 and this will once again amount to a huge profit for southgobi shares.
add to that the recent cold snap and some issues in russia which the market believes will allow mongolia to sell even more coal to china than ever. Currently russia is china 4th largest importer of coal while mongolia is 11th. That is setting up to change big time.
sgq still has production room available to almost double from current production.
bottomline these shares are cheap and could be even cheaper if the company can somehow renegotiate its 250m convertible debt to better terms and to settle their 75m penalty with the mongolian govt.
regardless for the first time in a long time sgq.v shares are trading at a discount to the hk listed shares and this is also a good thing.
glta