Mongolian Mining May Deplete Cash by End of Year, Moody’s Says
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High costs and low coal prices mean Mongolian Mining Corp. could run out of cash by the end of the year, according to Moody’s Investors Service.
The Ulaanbaatar-based producer of coking coal may spend the $253 million of cash it had at the end of last year by Dec. 31, the ratings company said in an e-mailed statement Wednesday. Revenue and sales volumes are falling as the average price of hard coking coal declines. The forecast comes after the company replenished cash with a HK$1.56 billion ($201 million) rights issue in December.