Basis of preparation. 1.1 Corporate information and going concern The Company’s condensed consolidated interim financial statements have been prepared on a going concern basis which assumes that the Company will continue operating until at least June 30, 2022 and will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due. However, in order to continue as a going concern, the Company must generate sufficient operating cash flows, secure additional capital or otherwise pursue a strategic restructuring, refinancing or other transactions to provide it with additional liquidity. Several adverse conditions and material uncertainties cast significant doubt upon the Company’s ability to continue as a going concern and the going concern assumption used in the preparation of the Company’s condensed interim consolidated financial statements. The Company had a deficiency in assets of $70,592 as at June 30, 2021 as compared to a deficiency in assets of $76,237 as at December 31, 2020 while the working capital deficiency (excess current liabilities over current assets) was $35,338 as at June 30, 2021 as compared to a working capital deficiency of $217,607 as at December 31, 2020. Included in the working capital deficiency as at June 30, 2021 are significant obligations, mainly comprising of trade and other payables of $68,791, which includes the unpaid taxes of $24,069 that are repayable on demand to the MTA. The Company may not be able to settle all trade and other payables on a timely basis, and as a result, any continuing postponement in settling certain trade and other payables owed to suppliers and creditors may impact the mining operations of the Company and may result in potential lawsuits and/ or bankruptcy proceedings being filed against the Company. Except as disclosed elsewhere in these condensed consolidated interim financial statements, no such lawsuits or proceedings were pending as at August 13, 2021. There are significant uncertainties as to the outcomes of the above events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern and, therefore, the Company may be unable to realize its assets and discharge its liabilities in the normal course of business. Should the use of the going concern basis in preparation of the condensed consolidated interim financial statements be determined to be not appropriate, adjustments would have to be made to write down the carrying amounts of the Company’s assets to their realizable values, to provide for any further liabilities which might arise and to reclassify non-current assets and non-current liabilities as current assets and current liabilities, respectively. The effects of these adjustments have not been reflected in the condensed consolidated interim financial statements. If the Company is unable to continue as a going concern, it may be forced to seek relief under applicable bankruptcy and insolvency legislation. Management of the Company has prepared a cash flow projection covering a period of 12 months from June 30, 2021. The cash flow projection has considered the anticipated cash flows to be generated from the Company’s business during the period under projection including cost saving measures. In particular, the Company has taken into account the following measures for improvement of the Company’s liquidity and financial position, which include: (i) entering into the 2020 November Deferral Agreement and the 2021 July Deferral Agreement with CIC for a deferral of the 2020 November Deferral Amounts and the 2021 Deferral Amounts until August 31, 2023; (ii) agreeing to deferral arrangements and improved payment terms with certain vendors; (iii) reducing the outstanding tax payable by making monthly payments to MTA beginning as of June 2020; and (iv) reducing the inventory of low quality coal by wet washing. After considering the above, the directors of the Company believe that there will be sufficient financial resources to continue its operations and to meet its financial obligations as and when they fall due in the next 12 months from June 30, 2021 and therefore are satisfied that it is appropriate to prepare the condensed consolidated interim financial statements on a going concern basis. Factors that impact the Company’s liquidity are being closely monitored and include, but are not limited to, impact of the COVID-19 pandemic, restrictions on the Company’s ability to import its coal products for sale in China, China’s economic growth, market prices of coal, production levels, operating cash costs, capital costs, exchange rates of currencies of countries where the Company operates and exploration and discretionary expenditures. As at June 30, 2021 and December 31, 2020, the Company was not subject to any externally imposed capital requirements.
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Basis of preparation. 1.1 Corporate information and going concern liquidity The Company’s condensed consolidated interim financial statements have been prepared on a going concern basis which assumes that the Company will continue operating to operate until at least June 30December 31, 2022 and will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due. However, in order to continue as a going concern, the Company must generate sufficient operating cash flows, secure additional capital or otherwise pursue a strategic restructuring, refinancing or other transactions to provide it with additional sufficient liquidity. Several adverse conditions and material uncertainties cast significant doubt upon the Company’s ability to continue as a going concern and the going concern assumption used in the preparation of the Company’s condensed interim consolidated financial statements. The Company incurred a loss attributable to equity holders of the Company of $14,373 for the year ended December 31, 2021 (compared to a loss attributable to equity holders of the Company of $20,089 for the year ended December 31, 2020), and as of that date, had a deficiency in assets of $70,592 90,450 as at June 30December 31, 2021 as compared to a deficiency in assets of $76,237 as at December 31, 2020 while the working capital deficiency (excess current liabilities over current assets) was reached $35,338 42,535 as at June 30December 31, 2021 as compared to a working capital deficiency of $217,607 as at December 31, 2020. Included in the working capital deficiency as at June 30December 31, 2021 are significant obligations, mainly comprising of represented by trade and other payables of $68,79167,327, which includes the $22,075 in unpaid taxes of $24,069 that are repayable on demand to the MTA. The Company may not be able to settle all trade and other payables on a timely basis, and as a result, result any continuing postponement in settling certain trade and other payables owed to suppliers and creditors may impact the mining operations ability of the Company to resume its mining operations and may result in potential lawsuits and/ or and/or bankruptcy proceedings being filed against the Company. Except as disclosed elsewhere in these condensed consolidated interim financial statementsthis press release, no such lawsuits or proceedings were pending as at August 13May 30, 20212022. On May 25, 2022, the Chinese-Mongolian border was re-opened for coal export on a trial basis, with a limit number of trucks was permitted to cross the border during this trial period. The Company has been proactively adjusting its sales strategy in response and exploring opportunities to expand its sales accordingly. There are significant uncertainties as to the outcomes of the above events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern and, therefore, the Company may be unable to realize its assets and discharge its liabilities in the normal course of business. Should the use of the going concern basis in preparation of the condensed consolidated interim financial statements be determined to be not appropriate, adjustments would have to be made to write down the carrying amounts of the Company’s assets to their realizable values, to provide for any further liabilities which might arise and to reclassify non-current assets and non-current liabilities as current assets and current liabilities, respectively. The effects of these adjustments have not been reflected in the condensed consolidated interim financial statements. If the Company is unable to continue as a going concern, it may be forced to seek relief under applicable bankruptcy and insolvency legislation. Management For the purpose of assessing the appropriateness of the use of the going concern basis to prepare the financial statements, management of the Company has prepared a cash flow projection covering a period of 12 months from June 30December 31, 2021. The cash flow projection has considered the anticipated cash flows to be generated from the Company’s business during the period under projection including cost saving measures. In particular, the Company has taken into account the following measures for improvement of the Company’s liquidity and financial position, which include: (ia) entering into three deferral agreements with CIC on November 19, 2020, the 2020 November Deferral Agreement for a deferral of (i) deferred cash interest and deferral fees of $75,194 which were due and payable to CIC on or before September 14, 2020, under the 2020 June Deferral Agreement; (ii) semi-annual cash interest payments in the aggregate amount of $16,000 payable to CIC on November 19, 2020 and May 19, 2021; (iii) $4,000 worth of PIK Interest shares issuable to CIC on November 19, 2020 under the CIC Convertible Debenture; and (iv) the management fee which payable to CIC on November 14, 2020, February 14, 2021, May 15, 2021, August 14, 2021 and November 14, 2021 under the Amended and Restated Cooperation Agreement, on July 30, 2021, the 2021 July Deferral Agreement with CIC for a deferral of the 2020 November Deferral Amounts and the 2021 Deferral Amounts, and on May 13, 2022, the 2022 May Deferral Agreement for a deferral of the Deferred Amounts respectively until August 31, 2023; (iib) communicating with vendors in agreeing to deferral arrangements and improved payment terms with certain vendorsrepayment plans of the outstanding payable; (iiic) reducing continuously assessing through communication with MTA its acceptability to a prolonged settlement schedule of the outstanding tax payable and making settlement based on that assessment and the liquidity position of the Company; (d) In light of the uncertainty brought by making monthly payments the pandemic which may impact the openness of the border, management has kept the mining operations temporary suspended despite the above-mentioned re-opening of the Chinese-Mongolian border for coal export since May 25, 2022, in order to MTA beginning as preserve the working capital that is required to resume the mining operations. The management expected that the existing inventory level on hand is sufficient to cater the demand for approximately a quarter and this provides flexibility to the Company in managing the timing of June 2020resumption of the mining operations and related sales strategy and its liquidity; and (ive) reducing obtaining an avenue of financial support from a prospective shareholder for a maximum amount of $73,000 during the inventory of low quality coal period covered in the cash flow projection. There is no guarantee that the suppliers and MTA would agree the settlement plan as communicated by wet washing. After the Company, Nevertheless, after considering the above, the directors of the Company believe that there will be sufficient financial resources to continue its operations and to meet its financial obligations as and when they fall due in the next 12 months from June 30December 31, 2021 and therefore are satisfied that it is appropriate to prepare the condensed consolidated interim financial statements on a going concern basis. Factors that impact the Company’s liquidity are being closely monitored and include, but are not limited to, impact of the COVID-19 pandemic, restrictions on the Company’s ability to import its coal products for sale in China, China’s Chinese economic growth, market prices of coal, production levels, operating cash costs, capital costs, exchange rates of currencies of countries where the Company operates and exploration and discretionary expenditures. As at June 30December 31, 2021 and December 31, 2020, the Company was not subject to any externally imposed capital requirements.
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Basis of preparation. 1.1 Corporate information and going concern liquidity The Company’s condensed consolidated interim financial statements have been prepared on a going concern basis which assumes that the Company will continue operating until at least June 30December 31, 2022 2021 and will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due. However, in order to continue as a going concern, the Company must generate sufficient operating cash flows, secure additional capital or otherwise pursue a strategic restructuring, refinancing or other transactions to provide it with additional sufficient liquidity. Several adverse conditions and material uncertainties cast significant doubt upon the Company’s ability to continue as a going concern and the going concern assumption used in the preparation of the Company’s condensed interim consolidated financial statements. The Company incurred a loss attributable to equity holders of the Company of $20,089 for the year ended December 31, 2020 (compared to a profit attributable to equity holders of the Company for the year ended December 31, 2019), and as of that date, had a deficiency in assets of $70,592 as at June 30, 2021 as 76,237 compared to a deficiency in assets of $76,237 49,218 as at December 31, 2020 2019 while the working capital deficiency (excess current liabilities over current assets) was reached $35,338 217,607 as at June 30December 31, 2021 as 2020 compared to a working capital deficiency of $217,607 114,711 as at December 31, 20202019. Included in the working capital deficiency as at June 30December 31, 2021 2020 are significant obligations, mainly comprising of which include the interest amounting to $91,059 in relation to the convertible debenture with CIC and trade and other payables of $68,79178,730, which includes the unpaid taxes of $24,069 36,107 that are repayable on demand to MTA. The Company failed to make payment of convertible debenture interest to CIC in according to the MTAterms of convertible debenture agreement. This constituted an event of default of the relevant convertible debenture agreements as at December 31, 2020 and the 2020 November Deferral Agreement became effective on January 21, 2021. As a result, the entire balance of the CIC Convertible Debenture was classified as current liability as at December 31, 2020. The Company may not be able to settle all trade and other payables on a timely basis, and as a result, result any continuing postponement in settling certain trade and other payables owed to suppliers and creditors may impact the mining operations of the Company and may result in potential lawsuits and/ or and/or bankruptcy proceedings being filed against the Company. Except as disclosed elsewhere in these condensed consolidated interim financial statementsthis press release, no such lawsuits or proceedings were pending as at August 13March 30, 2021. There are significant uncertainties as to the outcomes of the above events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern and, therefore, the Company may be unable to realize its assets and discharge its liabilities in the normal course of business. Should the use of the going concern basis in preparation of the condensed consolidated interim financial statements be determined to be not appropriate, adjustments would have to be made to write down the carrying amounts of the Company’s assets to their realizable values, to provide for any further liabilities which might arise and to reclassify non-current assets and non-current liabilities as current assets and current liabilities, respectively. The effects of these adjustments have not been reflected in the condensed consolidated interim financial statements. If the Company is unable to continue as a going concern, it may be forced to seek relief under applicable bankruptcy and insolvency legislation. Management of the Company has prepared a cash flow projection covering a period of 12 months from June 30December 31, 20212020. The cash flow projection has considered taken into account the anticipated cash flows flow to be generated from the Company’s business during the period under projection including cost saving measures. In particular, the Company has taken into account the following measures for improvement of the Company’s liquidity and financial position, which include: (i) entering into the 2020 November Deferral Agreement and the 2021 July Deferral Agreement with CIC for a deferral of the 2020 November Deferral Amounts and the 2021 Deferral Amounts until August 31, 2023; (ii) agreeing to deferral arrangements and improved payment terms with certain vendors; (iii) reducing the outstanding tax payable by making monthly payments to MTA beginning as of June 2020; and (iv) reducing the inventory of low quality coal by wet washing. After considering the above, the directors of the Company believe that there will be sufficient financial resources to continue its operations and to meet its financial obligations as and when they fall due in the next 12 months from June 30, 2021 and therefore are satisfied that it is appropriate to prepare the condensed consolidated interim financial statements on a going concern basis. Factors that impact the Company’s liquidity are being closely monitored and include, but are not limited to, impact of the COVID-19 pandemic, restrictions on the Company’s ability to import its coal products for sale in China, China’s economic growth, market prices of coal, production levels, operating cash costs, capital costs, exchange rates of currencies of countries where the Company operates and exploration and discretionary expenditures. As at June 30, 2021 and December 31, 2020, the Company was not subject to any externally imposed capital requirements.;
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Basis of preparation. 1.1 Corporate information and going concern liquidity The Company’s condensed consolidated interim financial statements have been prepared on a going concern basis which assumes that the Company will continue operating until at least June 30December 31, 2022 and will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due. However, in order to continue as a going concern, the Company must generate sufficient operating cash flows, secure additional capital or otherwise pursue a strategic restructuring, refinancing or other transactions to provide it with additional sufficient liquidity. Several adverse conditions and material uncertainties cast significant doubt upon the Company’s ability to continue as a going concern and the going concern assumption used in the preparation of the Company’s condensed interim consolidated financial statements. The Company incurred a loss attributable to equity holders of the Company of $14,373 for the year ended December 31, 2021 (compared to a loss attributable to equity holders of the Company of $20,089 for the year ended December 31, 2020), and as of that date, had a deficiency in assets of $70,592 as at June 30, 2021 90,450 as compared to a deficiency in assets of $76,237 as at December 31, 2020 while the working capital deficiency (excess current liabilities over current assets) was reached $35,338 42,535 as at June 30December 31, 2021 as compared to a working capital deficiency of $217,607 as at December 31, 2020. Included in the working capital deficiency as at June 30December 31, 2021 are significant obligations, mainly comprising of which include the interest amounting to $25,274 in relation to the convertible debenture with CIC and trade and other payables of $68,79167,327, which includes the unpaid taxes of $24,069 22,075 that are repayable on demand to the MTA. The Company may not be able to settle all trade and other payables on a timely basis, and as a result, result any continuing postponement in settling certain trade and other payables owed to suppliers and creditors may impact the mining operations of the Company and may result in potential lawsuits and/ or and/or bankruptcy proceedings being filed against the Company. Except as disclosed elsewhere in these condensed consolidated interim financial statementsthis press release, no such lawsuits or proceedings were pending as at August 13March 30, 20212022. There are significant uncertainties as to the outcomes of the above events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern and, therefore, the Company may be unable to realize its assets and discharge its liabilities in the normal course of business. Should the use of the going concern basis in preparation of the condensed consolidated interim financial statements be determined to be not appropriate, adjustments would have to be made to write down the carrying amounts of the Company’s assets to their realizable values, to provide for any further liabilities which might arise and to reclassify non-current assets and non-current liabilities as current assets and current liabilities, respectively. The effects of these adjustments have not been reflected in the condensed consolidated interim financial statements. If the Company is unable to continue as a going concern, it may be forced to seek relief under applicable bankruptcy and insolvency legislation. Management of the Company has prepared a cash flow projection covering a period of 12 months from June 30December 31, 2021. The cash flow projection has considered taken into account the anticipated cash flows flow to be generated from the Company’s business during the period under projection including cost saving measures. In particular, the Company has taken into account the following measures for improvement of the Company’s liquidity and financial position, which include: (ia) entering into the 2020 November Deferral Agreement and the 2021 July Deferral Agreement with CIC for a deferral of (i) deferred cash interest and deferral fees of $75,200 which were due and payable to CIC on or before September 14, 2020, under the 2020 June Deferral Agreement; (ii) semi- annual cash interest payments in the aggregate amount of $16,000 payable to CIC on November Deferral Amounts 19, 2020 and May 19, 2021; (iii) $4,000 worth of 2020 November PIK Interest issuable to CIC on November 19, 2020 under the CIC Convertible Debenture; and (iv) the management fee which payable to CIC on November 14, 2020, February 14, 2021, May 15, 2021, August 14, 2021 and November 14, 2021 under the Amended and Restated Cooperation Agreement and the 2021 Deferral Amounts respectively until August 31, 2023; (iib) agreeing to deferral arrangements and improved payment terms with certain vendors; (iiic) reducing the outstanding tax payable by making monthly payments to MTA beginning as of June 2020the MTA; and (ivd) reducing the inventory of low quality coal by wet washing. After considering the above, the directors of the Company Directors believe that there will be sufficient financial resources to continue its operations and to meet its financial obligations as and when they fall due in the next 12 months from June 30December 31, 2021 and therefore are satisfied that it is appropriate to prepare the condensed consolidated interim financial statements on a going concern basis. Factors that impact the Company’s liquidity are being closely monitored and include, but are not limited to, impact of the COVID-19 pandemic, restrictions on the Company’s ability to import its coal products for sale in China, China’s Chinese economic growth, market prices of coal, production levels, operating cash costs, capital costs, exchange rates of currencies of countries where the Company operates and exploration and discretionary expenditures. As at June 30December 31, 2021 and December 31, 2020, the Company was not subject to any externally imposed capital requirements.
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Basis of preparation. 1.1 Corporate information and going concern liquidity The Company’s condensed consolidated interim financial statements have been prepared on a going concern basis which assumes that the Company will continue operating until at least June 30December 31, 2022 2017 and will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due. However, in order to continue as a going concern, the Company must generate sufficient operating cash flows, secure additional capital or otherwise pursue a strategic restructuring, refinancing or other transactions to provide it with additional liquidity. Several adverse conditions and material uncertainties cast significant doubt upon the Company’s ability to continue as a going concern and the going concern assumption used in the preparation of the Company’s condensed interim consolidated financial statementsassumption. The Company had a deficiency in assets of $70,592 as at June 30, 2021 as compared to a deficiency in assets of $76,237 as at December 31, 2020 while the working capital deficiency (excess current liabilities over current assets) was $35,338 as at June 30, 2021 as compared to a working capital deficiency of $217,607 59,425 as at December 31, 20202016 compared to $42,322 of working capital deficiency as at December 31, 2015. Included in the working capital deficiency as at June 30December 31, 2021 2016 are significant obligations, mainly comprising of which come due in short-term, including the agreement to pay $19,696 to CIC from January to May 2017, pursuant to the interest deferral agreement. Although the Company has been in discussions with CIC for a further deferral, there can be no assurance that a favorable outcome can be reached. Further, the trade and other payables of $68,791the Company continue to accumulate due to liquidity constraints. The aging profile of the trade and other payables has risen as compared to that as at December 31, which includes the unpaid taxes of $24,069 that are repayable on demand 2015, as follows: As at December 31, 2016 2015 Less than 1 month $ 14,640 $ 9,465 1 to the MTA. 3 months 2,493 3,282 3 to 6 months 2,648 6,075 Over 6 months 23,847 12,095 Total trade and other payables $ 43,628 $ 30,917 The Company may not be able to settle all trade and other payables on a timely basis, and as a result, any while continuing postponement in settling certain the trade and other payables owed to suppliers and creditors may impact the mining operations of the Company and may result in potential lawsuits and/ or and/or bankruptcy proceedings being filed against the Company. Except as disclosed elsewhere in these condensed consolidated interim financial statements, no No such lawsuits or proceedings were are pending as at August 13March 31, 20212017. There are significant uncertainties as The Company also has other current liabilities, which require settlement in the short-term, including: the remaining cash payments of $3,013 due in connection with the Tax Penalty owing to the outcomes Government of Mongolia; the MTLLC settlement in the amount of $7,928, which is included in trade and other payables, due between March and June 2017; the $3,425 balance of the above events short-term bridge loan due in April 2017 (repaid in January and March 2017) the $2,881 balance of the TRQ Loan payable in monthly payments with the balance due in December 2017; and the bank loan of $2,026 due in May 2017. The Company is also party to a commercial arbitration in Hong Kong with First Concept, involving an $11,500 amount received as a coal supply contract prepayment, whereby First Concept is seeking to recover its deposit rather than completing the contracted coal purchases. An arbitration decision, which would compel the Company to repay First Concept or alternatively, which would compel First Concept to take the coal will impact the liquidity of the Company. In order to address the continuing difficult coal market conditions that may cast significant doubt in China, the Company has initiated a plan to change the existing product mix to higher value and higher margin outputs by washing certain grades of coal commencing in 2017 in order to produce more premium semi-soft coking coal and to initiate more processing of the lower grades of coal in order to reduce the ash content and improve the selling price and margins on its thermal coal product. The Company has also completed a new mine plan, which incorporates the coal washing and processing systems and contemplates significantly higher volumes of production in order to complement the Company’s new product mix and sales volume targets. Such plans will involve the need for a significant level of stripping activities over the next two years and require certain capital expenditures to achieve the designed production outputs. Such expenditures will require the Company to seek additional financing in the form of finance leases, debt or equity. The Company has entered into an agreement for a finance lease on the new wash plant facility but will need financing to complete the thermal coal processing facilities. There is no guarantee that the Company will be able to successfully execute the measures mentioned above and secure other sources of financing. If it fails to do so, or is unable to secure additional capital or otherwise restructure or refinance its business in order to address its cash requirements through December 31, 2017, then the Company is unlikely to have sufficient capital resources or cash flows from mining operations in order to satisfy its current ongoing obligations and future contractual commitments. This could result in adjustments to the amounts and classifications of assets and liabilities in the Company’s consolidated financial statements and such adjustments could be material. Unless the Company acquires additional sources of financing and/or funding in the short term, the ability of the Company to continue as a going concern and, therefore, the Company may be unable to realize its assets and discharge its liabilities in the normal course of business. Should the use of the going concern basis in preparation of the condensed consolidated interim financial statements be determined to be not appropriate, adjustments would have to be made to write down the carrying amounts of the Company’s assets to their realizable values, to provide for any further liabilities which might arise and to reclassify non-current assets and non-current liabilities as current assets and current liabilities, respectively. The effects of these adjustments have not been reflected in the condensed consolidated interim financial statementsis threatened. If the Company is unable to continue as a going concern, it may be forced to seek relief under applicable bankruptcy and insolvency legislation. Management Continuing delay in securing additional financing could ultimately result in an event of default of the Company has prepared a cash flow projection covering a period of 12 months from June 30, 2021. The cash flow projection has considered the anticipated cash flows to be generated from the Company’s business during the period under projection including cost saving measures. In particularCIC Convertible Debenture, the TRQ Loan and the bank loan, which if not cured within applicable cure periods in accordance with the terms of respective instruments, may result in the principal amounts owing and all accrued and unpaid interest becoming immediately due and payable upon notice to the Company has taken into account by CIC, Turquoise Hill and the following measures for improvement lender of the Company’s liquidity and financial positionbank loan, which include: (i) entering into the 2020 November Deferral Agreement and the 2021 July Deferral Agreement with CIC for a deferral of the 2020 November Deferral Amounts and the 2021 Deferral Amounts until August 31, 2023; (ii) agreeing to deferral arrangements and improved payment terms with certain vendors; (iii) reducing the outstanding tax payable by making monthly payments to MTA beginning as of June 2020; and (iv) reducing the inventory of low quality coal by wet washing. After considering the above, the directors of the Company believe that there will be sufficient financial resources to continue its operations and to meet its financial obligations as and when they fall due in the next 12 months from June 30, 2021 and therefore are satisfied that it is appropriate to prepare the condensed consolidated interim financial statements on a going concern basisrespectively. Factors that impact the Company’s liquidity are being closely monitored and include, but are not limited to, impact of the COVID-19 pandemic, restrictions on the Company’s ability to import its coal products for sale in China, China’s Chinese economic growth, market prices of coal, production levels, operating cash costs, capital costs, exchange rates of currencies of countries where the Company operates and exploration and discretionary expenditures. As at June 30December 31, 2021 2016, the Company’s gearing ratio was 0.37 (2015: 0.33), which was calculated based on the Company’s long term liabilities to total assets. As at December 31, 2016 and December 31, 20202015, the Company was is not subject to any externally imposed capital requirements.
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