Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Hong Kong-based Mongolia Energy Corporation Limited operates as an investment holding company with a focus on coal mining, processing, and various other resource-related ventures across China and Mongolia. The company markets both metallurgical (coking) and steam (thermal) coal. A key undertaking for MEC is the Khushuut coking coal project, situated in Western Mongolia. It holds substantial exploration and mining concessions, covering approximately 13,981 hectares for coal and ferrous resources in Western Mongolia, specifically in the Khushuut, Olon Bulag, and Bayan-Ulgii regions. Furthermore, the firm delivers management, secretarial, nominee, and mining/exploration advisory services, engages in coal trading, and manages coal washing facilities.
Company Valuation
Considering past and projected metrics, the stock is distinctly 'cheaper' than its peers. In particular, the stock is underpriced on P/E, undervalued on P/FC.