[ET Net News Agency, 7 April 2014] Credit Suisse tweaked its target price for Mongolian
Mining Corporation (MMC)(00975) to HK$1.1 from HK$1.2, but upgraded the stock to
"outperform" from "neutral" based on a potential US$7/tonne cost cut from the cross-border
rail by end 2014, amid a meaningful profit improvement versus current unit EBIT of only
US$5/t in 2013-14.
The research house said MMC's FY2013 net loss expanded to US$58mn, or EPS US$0.016, is
in line with consensus as miss in 4Q 2013 sales volumes and ASP was offset by lower cost
mostly due to better yield and strip ratio in 2H 2013.
At 0.6x P/B, the stock has mostly factored in the depressed coal prices and MMC's debt
repayment pressure, Credit Suisse said. The house sees risk on the upside with improving
earnings from cost saving, and better short-term liquidity post cash-in from selling paved
road and postponing debt in 2014-15. (KL)
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00975 MONGOL MINING
Nominal 
10.520 +0.600 (+6.048%) Others
07/04/2014 11:01
[I-bank focus]Credit Suisse tweaks Mongol Mining to HK$1.1
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