Aspire Mining Rebounds to Profit as Ovoot Project Gains Regulatory Momentum

About Aspire Mining Limited

Aspire Mining Limited (ASX: AKM) is an Australian-based mining company focusing on developing its 100% owned flagship Ovoot Coking Coal Project in northern Mongolia. The company also hold 90% stake in the nearby Nuurstei coking coal project. Aspire Mining Limited was listed on the ASX on 6 February 2007 at an issue price of AUD 1.89 per share.

Financial Performance

Aspire reported a net profit of $6.66 million for the year ended 31 December 2024, a strong turnaround from the $3.36 million loss posted in the prior six-month period. However, this profit was largely attributed to favourable foreign exchange revaluations on USD-denominated assets, driven by AUD depreciation. Excluding these non-cash FX gains, the company’s operational performance aligned with expectations. Operational cash outflows reached $1.54 million, while exploration and evaluation expenses totalled $1.78 million. Despite reduced cash reserves of $4.58 million, the group retained working capital of $14.36 million and net assets of $42.06 million as of 31 December 2024.

Growth Pipeline

Aspire’s growth trajectory remains anchored by the scale and quality of the Ovoot resource. Updated in late 2024, the JORC-compliant Coal Resource now stands at 219.4 million tonnes (Mt), comprising 99.5 Mt Measured, 100.9 Mt Indicated, and 10.9 Mt Inferred resources. Coal Reserves are estimated at 130.1 Mt, supporting the company’s long-life, high-margin development strategy.

Strategic reviews of Aspire’s global corporate structure are underway to improve project financing access and future profit repatriation. If successfully concluded, Aspire’s public-private partnership road project is expected to provide critical logistics support while offering broader community benefits through infrastructure investment.

Evaluations for the CHPP and Erdenet terminal construction are ongoing, with Aspire aiming to award contracts by mid-2025 and commence site works in the second half of the year.

Strategic Development

In 2024, Aspire advanced the Ovoot project toward construction readiness. Key achievements included receiving approvals from the Mongolian Ministry of Nature, Environment and Tourism for the Detailed Environmental Impact Assessments (DEIA) for the Coal Handling and Preparation Plant (CHPP) and essential haulage roads. The Ministry of Road and Transportation Development approved the detailed design for the associated road infrastructure.

Engineering studies were significantly advanced, with a revised Front-End Engineering Design (FEED) for the Erdenet Rail Terminal completed and integrated into updated financial models. A Basic Engineering Design (BED) was also finalised for a Transportation Hub and associated facilities. Tender processes for the CHPP and rail terminal construction were launched, attracting strong participation from local and international contractors.

Meanwhile, Aspire intensified its market engagement efforts. Clean coal samples prepared from neighbouring deposits were sent to potential offtake customers in northern China, and discussions commenced with Indian end-users seeking high-quality coking coal to support their growing steel industries. The company also continued actively participating in public-private partnership (PPP) processes to fast-track road infrastructure under Mongolian government frameworks.

Industry Context

Global metallurgical coal markets have remained structurally tight, particularly for premium coking coal products targeted by Aspire. China and India continue to show robust steel production growth, underpinned by urbanisation and infrastructure expansion, which is expected to maintain strong demand for high-quality coking coal despite broader commodity price volatility.

Mongolia’s geographic proximity to China offers a clear logistical advantage, while growing diplomatic ties with India open up longer-term supply opportunities. Nevertheless, Aspire remains exposed to country-specific sovereign risks and regulatory changes, and the timely execution of funding, construction, and logistics agreements will be critical to success.