The Hu Bring Epic Mongolian Metal To Hellfest 2025 www.metaltalk.net

Hellfest 2025, Clisson, France. The Hu played Main Stage 1 on Friday as the sun finally started to give way. It was still very hot, but slightly more breathable. With this, the Mongolian collective, last present at Hellfest on a smaller stage, graduated to the main venue.
Their special brand of Metal played with traditional instruments, as well as traditional throat singing, draws a massive crowd, and all of a sudden, it would seem that the crowd would turn into an invading army led by the warriors on stage.
With a massive statue of Genghis Khan and looking like they mean business, The Hu are a special presence at this year’s festival, and their cover of Iron Maiden’s Trooper goes down great.
All was performed on a stage that would remind one of a medieval castle – if said building had LED screens with nicely done graphics.
HELLFEST 2025
Prepare to be consumed by the relentless energy of the most influential bands in Heavy Metal as they ignite the Hellfest stages with blistering performances. The immersive atmosphere of Clisson will immerse you in a dark, captivating experience like no other.
With its unparalleled lineup and unwavering commitment to the spirit of metal, Hellfest 2025 promises an unforgettable journey into the depths of sonic mayhem. Read all the Heavy Metal News at MetalTalk.
MetalTalk Hellfest 2025 coverage can be found at https://www.metaltalk.net/tag/hellfest-2025.

Khaan Quest 2025: An Army Reserve engineer’s journey in Mongolia www.usar.army.mil

Amid the rumble of heavy machinery and sifting clouds of dirt, U.S. Army engineers work alongside their Mongolian counterparts to carve a new road through the rugged terrain. Moving tons of earth each day, the bilateral team is laying the groundwork for a paved highway that will support future training and mobility in the region by connecting the nearby military training installation to the closest highway, Tovchoo Road. Leading the American effort is 1st Lt. Bryan Albertson, an officer whose passions for cooking, traveling, and the outdoors shape his approach to leadership in the field.
Albertson, the executive officer assigned to 333rd Engineer Company, 365th Engineer Battalion, 302nd Maneuver Enhancement Brigade, 412th Engineer Command, has served in the U.S. Army for over three years. During that time, he has been afforded the chance to work with a handful of non-commissioned officers who have helped guide his growth and development as a junior officer.
“He has a very strong work ethic,” said Staff Sgt. Adam Bahrey, a horizontal construction engineer assigned to the 365th Engineer Battalion. “He was ambitious to learn about the equipment, the Soldiers’ tasks, and figuring out what tasks he and I worked together as platoon leader and platoon sergeant.”
Albertson, from Harrisonburg, Virgina, has always loved the mountains. He spent much of his life camping in the Shenandoah Valley and spending time in nature or in the kitchen with his family. For him, the steppes of Mongolia are reminiscent of home.
“I told our interpreter when we first got here, it feels a lot like home, because even when you look off into the distance, you notice how the mountains are very blue as they fade away, same way as the Blue Ridge Mountains,” said Albertson. “The hills are about the same size as the Appalachians, but at home they're just covered with forests instead of grassland.”
Growing up, he and his family made a tradition of camping in as many national parks as possible, having gone to 15 parks in total. One of the most memorable parks for Albertson was camping in the iconic Yosemite National Park when he was younger.
“It was awesome being out there in the mountains,” said Albertson. “Camping with my family, we saw wildlife that we don’t see back east, and being up in those mountains there, they’re just incredible, because they’re not to a scale that we see on the East Coast.”
In addition to Albertson’s love of the mountains and his home, he has a thrill for traveling abroad. For Albertson, a lifelong goal has been to visit every continent. His service in the U.S. Army has started to make that ambition become a reality. Last year, he was afforded the opportunity to travel to Hohenfels, Germany.
“When I joined the Army, the slogan was, ‘join the army, see the world,’” said Albertson. “Many Soldiers don’t believe they can see the world with the U.S. Army Reserves, however, I have been afforded the opportunity to go to multiple countries, like Germany and Mongolia, which has definitely shown me a different corner of the world.”
When asked about some of his favorite experiences of being in Mongolia so far, Albertson was quick to answer: the food. Much of the food served in the Mongolian dining facility involves beef, lamb, fish, and an assortment of different vegetables.
“We’ve had some good eats at the dining facility,” said Albertson. “I’d love to try my hand at home with some of these recipes. Recipes such as stir fry, wok cooking, noodle, and mutton, like the meals we’ve had here, to share at home.”
Though an engineer by trade, Albertson is also a skilled cook at home. As a child, his parents instilled in him the necessity and love for cooking. From an early age, his mother taught him and his siblings to cook a variety of meals, such as lasagna, burgers, and salmon, while his father taught him how to make steaks and tacos.
“My mom wanted to make sure that we knew how to cook, because you should always be able to cook some delicious food for yourself. And so we grew up, the kids, making two to three dinners a week just to learn how to do it,” said Albertson.
This method of learning to cook by his parents was similar to how the military trained Albertson his roles and responsibilities.
“When I was coming up as a cadet, I was taught to mentor Soldiers in the left-seat right-seat method,” said Albertson. “That is where a senior Soldier sits next to a junior Soldier, and shows them the way to operate the controls of the equipment until they can do it independently. Out here we are doing the same, pairing up one Mongolian and one U.S. Soldier side by side, making sure the Mongolian Soldier can pick up the finer points of equipment operating from our Soldiers.”
As Albertson has explored the world, he has also taken the time and insight to reflect on how cooking correlates to his position within the U.S. Army. He holds a similar mindset to cooking when it comes to being on a construction site: following guidelines and blueprints of a job to that of a recipe in the kitchen.
“Everything in construction needs to be by the book and properly executed, just like a recipe. If you don’t construct it all properly, then you’re going to end up with issues further down the line.”
“He’s one of the best platoon leaders I’ve worked with. His openness and willingness to work with the non-commissioned officers and ensure we are making the right decisions will make him a good captain in the future,” said Bahrey.
When reflecting on how he feels at the end of past jobs, Albertson likened his sense of accomplishment to completing a journey through the wilderness.
“I’d say in mindset terms, the biggest thing is seeing the payoff from all of your hard work, similar to when we execute a large job like this one,” Albertson said. “All of the hard work and sweat is made worth it by making it to the final portion and seeing the view at the end.”

The Influence of Natural Factors on the Spatial Distribution of Aufeis in Ulaanbaatar, Mongolia www.frontiersin.org

Aufeis is a recurring natural phenomenon in Ulaanbaatar, Mongolia, that significantly affects local communities and urban infrastructure during winter. Despite its annual occurrence, the processes and natural factors influencing aufeis formation remain poorly understood. This study investigates the long-term dynamics of aufeis formation and the natural factors controlling its extent and distribution. Landsat satellite imagery from 2009 to 2024 was analyzed to assess multiyear changes in aufeis extent, and drone imagery was employed to map the monthly dynamic changes in aufeis during the winter of 2023-2024. The results show that aufeis typically forms in November, reaches a peak in March, and completely melts by May. Over the past 14 years, aufeis areas ranged from 0.01 km 2 to 0.03 km 2 . However, in the winter of 2023-2024, the aufeis expanded to 0.04 km 2 , with significant encroachment into settlement areas, causing notable damage. This shift in spatial distribution is attributable to changes in ground surface temperature induced by thick snow cover that functioned as thermal insulation and allowed spring water to flow beneath the snow and accumulate in low-lying areas. Furthermore, variations in annual precipitation and geological conditions influenced the extent of aufeis.

TMK drills final Mongolian pilot hole amid development partnership talks www.thewest.com.au

TMK Energy has received strong interest in its Gurvantes XXXV coal seam gas projects in Mongolia from potential partners with financial capability and proven track records in horizontal drilling and fracking.
Management has been encouraged by the response from potential project partners during a recent visit to Mongolia and China and will turn its focus to firming up new players as it executes its drilling schedule at Gurvantes XXXV.
The company has now finalised a drilling contract with specialists Major Drilling for an additional pilot production well at its Nariin Sukhait LF-07 site in Mongolia, after flagging the end of tendering earlier this month.
TMK expects to sign the drilling contract after a final review by the regulator, which is expected shortly. The company finished its final preparations for LF-07 in June and has spudding slated for the second half of July.
It says all its long lead-time items necessary for drilling are onsite and the company has completed drill pad preparation, sumps and other associated site works.
In an independent review delivered to TMK in July, technical consultant Dr Tim Moore of Cipher Consulting, recommended production should continue from a series of pilot wells at TMK’s flagship Gurvantes XXXV project.
Moore said that while a significant gas breakthrough is still awaited from the pilot wells, a slower-than-expected first gas flow is not uncommon in the initial development of greenfield coal seam gas plays, such as the Nariin Sukhait well.
The independent experts agreed that a further well for the pilot project - and its planned placement - are appropriate and that the program meets the company’s 2025 pilot well drilling commitment for its Gurvantes XXXV licence.
TMK is considering further recommendations in its imminent LF-07 pilot well program and in its ongoing development planning as the project advances. It has already put in place an improved mud system for drilling LF-07.
The company will use a bigger, more powerful drill rig than it used for its previous pilot wells. The drilling contract has been structured as a fixed price ‘turnkey’ contract, which reduces the company’s risk exposure to potential cost overruns.
Drilling of LF-07 will most likely be the last vertical pilot well drilled in the current pilot well complex. From this point, the company will design and plan a potential deviated or horizontal drilling and hydraulic fracturing program for next year.
The company last month undertook additional pressure build-up tests on its LF-01 and LF-03 wells to validate and confirm a pressure decline it had measured at LF-02 in April. The tests showed the pressure reduction at LF-02 is also seen at LF-01 and LF-03.
Encouragingly, the reductions suggest the broader area around the pilot production wells is being depressurised. This points to good connectivity between the wells and is key information that can be integrated into the reservoir model.
With the pressure build-up tests completed, the company is now focussing on having all the wells consistently pumping to reach the critical desorption pressure necessary to yield a material increase in well gas flows.
During May, gas production continued from the pilot production well complex in line with expectations and the preceding month’s figures to produce about 8300 cubic metres of gas.
The operating pilot wells continued to produce consistently through May, despite shutdowns required to undertake pressure build-up tests at LF-01 and LF-03 and while awaiting remediation of the LF-05 well.
The equipment required to remediate LF-05 is in Mongolia after some production delays in China, and TMK expects Major Drilling will mobilise its workover rig to the Nariin Sukhait site later this week.
With the timing of LF-07 drilling now locked in, our focus will turn to introducing project partners to the Gurvantes XXXV project. Key attractions of the project to potential partners include the significant size and technical attributes of the resource, its proximity (~20km) to one of the key border crossings between China and Mongolia, the desire of the Mongolian government to develop a gas industry and the enormous and continuing demand from the energy market in China.
TMK Energy chief executive officer Dougal Ferguson
TMK is buoyed by the early interest shown in the project and says discussions are continuing with several parties, including potential project partners with the financial capability and technical competency to help advance the project.
The company is also chasing strategic technical partnerships with selected service providers, particularly China-based companies with proven track records and extensive coal seam gas expertise and the equipment to undertake horizontal drilling and fracking operations for production hole development.
The company sees the significant interest as a strong validation of its project and its significant potential to be a material gas-producing field.

PM plans to cut budget by 2 trillion MNT www.gogo.mn

Prime Minister G.Zandanshatar delivered a keynote address at the plenary session of parliament, presenting his "Savers Statement", a formal policy declaration outlining urgent government measures to reduce public spending alongside a proposed amendment to the 2025 state budget. In his address, the premier warned of a significant fiscal shortfall driven by a sharp decline in coal prices, which could reduce national budget revenues by as much as 3.2 trillion MNT.
“This is not just a temporary concern, it’s a worsening situation,” said G.Zandanshatar. “If we do not act quickly to revise the budget and reduce high-import investments, we risk triggering higher inflation, weakening the MNT, and threatening the financial stability of our citizens, businesses, and economic producers.”
Citing data from an international study, the prime minister highlighted that an one percent increase in inflation could push an additional 24,000 Mongolians into poverty, a stark warning about the potential social impact of unchecked economic pressures.
When the original 2025 budget was approved, coal prices were projected at 105 USD per ton. However, with slowing industrial demand in China, prices have plummeted to around 70 USD per ton, with forecasts suggesting this level may persist for the next one to two years. In response, the government is adopting what G.Zandanshatar called a policy of "Strengthening the State Independently."
The "Savers Statement" lays out a series of cost-saving measures across all levels of government, aiming to freeze or cut non-essential spending. These include suspending plans to raise fuel and heating costs for budget-funded institutions, cutting 28.9 billion MNT from transport, fuel, business travel, and education production costs, reducing foreign delegation and hosting expenses by 4.5 billion MNT, and excluding top-level state visits, halting routine maintenance and equipment purchases, saving 104.4 billion MNT. The measures further include withdrawing 76.8 billion MNT in subsidies to both state and private organizations, eliminating 30.2 billion MNT in one-time bonuses and incentives, and canceling or downsizing numerous public programs and events, saving 617.3 billion MNT.
In total, these measures are expected to reduce expenditures by 1.51 trillion MNT. Additionally, under a recent resolution titled “Budget Savings,” the government will stop financing procurement projects not yet under contract, yielding a further 535.9 billion MNT in savings. Combined, the government aims to trim total budget spending by 2.04 trillion MNT.
According to the revised proposal, the consolidated budget’s revenue will decrease by 3.26 trillion MNT, while expenditures will fall by 1.86 trillion MNT. This results in a budget deficit of 1.36 trillion MNT, equivalent to 1.5 percent of Mongolia’s GDP, a figure that remains within the parameters of the Law on Budget Stability.
Prime Minister G.Zandanshatar concluded by emphasizing that these changes are necessary to maintain financial stability, protect vulnerable households, and reinforce the nation’s economic independence in uncertain global conditions.

The MongolZ announce academy roster / Mongolian passion for Counter-Strike / Why are more teams investing more in Academy Rosters? www.esports-news.co.uk

FIBA 3x3 World Cup 2025: Spain and the Netherlands crowned men's and women's champions www.olympics.com

Spain powered past Switzerland with a 21-17 win for their maiden men’s title at the 3x3 basketball World Cup 2025 in Ulaanbaatar, Mongolia, on Sunday (29 June).
The match was a tight affair in the opening salvos before Spain got their noses in front to take a three-point lead (5-2).
The Swiss closed the gap to get within one point, but the Spanish, led by Diego De Blas, powered back to extend their lead to six.
Spain held off a late charge by Switzerland in the dying minutes of the match as they got within two points (18-16). De Blas contributed 12 points to his team’s score.
Six-time champions Serbia were stopped in their tracks in the semi-finals by a rampant Switzerland. The Swiss team steamrolled the defending champions with a 21-11 rout in the semi-final to march into their maiden final.
Serbia walked away with the bronze medal as a consolation prize as they wiped out a five-point deficit for a 21-16 win.
The Netherlands end the Mongolian Cinderella story
Mongolia’s Cinderella story ended in defeat in the women’s final, with the Netherlands winning their maiden title with a 15-9 triumph. The hosts marched into the final following historic wins over defending champions the United States in the quarter-final before beating Poland in the semis.
The final was a bridge too far for the tenacious Mongolians as the Dutch team took control early in the contest with a 6-1 lead. Mongolia looked poised to launch a fightback halfway into the match. The Netherlands remained undaunted however as they kept the hosts at an arm’s length for their first World Cup title.
In the bronze-medal match, Canada was firing on all cylinders as they denied Poland their best-ever finish at the global showpiece. Canada stormed to a five-point lead and continued to build on that advantage for a commanding 21-9 victory.

First Political Consultations between the Ministries of Foreign Affairs of Mongolia and the Kingdom of Belgium Takes Place in Brussels www.montsame.mn

The First Political Consultations between the Ministries of Foreign Affairs of Mongolia and the Kingdom of Belgium took place in Brussels on June 24, 2025.
During the Consultations, the two sides exchanged information on the current political, social, and economic situation of their countries, as well as on major long-term development policy objectives. They discussed in detail the opportunities to expand bilateral cooperation in mutually beneficial areas. Additionally, the parties exchanged views on effectively celebrating the 55th anniversary of diplomatic relations between Mongolia and the Kingdom of Belgium next year and agreed to focus on implementing legal documents aimed at strengthening exchanges and mutual understanding between the peoples of the two countries.
The sides highlighted that the Agreement on Mutual Recognition and Exchange of Driving Licenses has contributed to creating more favorable living conditions for citizens. The parties also discussed cooperation within the United Nations and other international organizations and shared views on certain issues in international relations.
The First Political Consultation was chaired by Battungalag Gankhuurai, Director of the Department of Europe and Africa at the Ministry of Foreign Affairs of Mongolia, and François Delhaye, Director of the Asia-Pacific Department of the Ministry of Foreign Affairs, Foreign Trade, and Development Cooperation of the Kingdom of Belgium, reported the Ministry of Foreign Affairs of Mongolia.

Opinion: Beyond the Steppe and the Oasis – Uzbekistan and Mongolia Forge a New Eurasian Axis www.timesca.com

When Uzbekistan’s President Shavkat Mirziyoyev arrived in Ulaanbaatar on June 24, for the first state visit of its kind in over thirty years of bilateral relations, it marked far more than a ceremonial milestone—it inaugurated a new continental bridge between Central and Northeast Asia. This long-overdue rapprochement, anchored in pragmatism and shared strategic aspirations, signals a transformative shift in Eurasian diplomacy.
It is a moment not just of bilateral relevance, but of regional consequence. The significance of this visit rests not only in its unprecedented nature, but also in its scope and timing. Concluding just a year after Mongolian President Ukhnaagiin Khurelsukh’s landmark 2024 visit to Tashkent—which laid the groundwork by opening Mongolia’s embassy in Uzbekistan and producing 14 foundational agreements—Mirziyoyev’s trip has formalized the momentum into a ‘Comprehensive Partnership Declaration’.
The outcomes include new trade commitments, transport corridors, cultural and academic ties, and a political alignment that subtly redraws the map of Eurasian cooperation.
Rediscovering Strategic Geography
What makes this partnership compelling is the rediscovery of geography in a post-globalization world. Uzbekistan and Mongolia are both landlocked, Uzbekistan doubly so, and lie at the crossroads of larger powers—Russia, China, and increasingly, the emerging economic spheres of South and West Asia.
For years, both nations were seen as peripheral actors in global politics. Today, however, shifting supply chains, energy diversification, and regional infrastructure projects such as China’s Belt and Road Initiative (BRI) have brought new relevance to their geography. This state visit demonstrated a clear strategic calculus of connectivity, resilience, and regional integration. With the rise of multi-vector diplomacy—long a staple of Mongolia’s foreign policy—Uzbekistan is mirroring similar principles to diversify its partnerships and mitigate geopolitical dependence.
In Mirziyoyev’s words, both countries “agreed to jointly develop efficient transportation routes,” echoing a growing realization that infrastructure is destiny. The immediate fruit of this understanding is the first direct air link between Tashkent and Ulaanbaatar, to be operated by Hunnu Air and Uzbek partners starting in fall 2025.
On the ground, both sides are accelerating the development of a road corridor via Kyrgyzstan and China, creating an East-West axis that could become a vital alternative to congested or politically fraught transit routes. In this regard, the Uzbek-Mongolian corridor aligns with academic assessments that argue for multimodal, decentralized connectivity in post-pandemic Eurasia.
Economic Diplomacy in Action
Although bilateral trade remains modest in volume—just $14 million in 2023—it is growing rapidly, nearly doubling year-on-year. More importantly, it is underpinned by complementary economies. Uzbekistan exports automobiles, textiles, and agricultural products, while Mongolia offers livestock, wool, leather, and minerals. This isn’t simply a matter of goods exchanged, but of value chains being stitched together. The presence of a Chevrolet dealership in Ulaanbaatar and the arrival of over 1,400 Mongolian sheep in Navoi region of Uzbekistan are not anecdotal oddities—they’re signs of a nascent, multidimensional trade ecosystem.
More than 150 companies participated in a bilateral business forum in Ulaanbaatar, resulting in new contracts and a decision to establish a ‘Joint Business Council’. Further, the agreements on investment protection and double taxation avoidance are in the pipeline, vital legal scaffolding for long-term investment and industrial collaboration. These include targeted areas such as mining, agricultural processing, textile manufacturing, and logistics hubs. The potential for livestock clusters, with Mongolian expertise and Uzbek veterinary infrastructure, represents a practical case of south-north agro-cooperation that is rare in continental Asia.
Such economic diplomacy is consistent with the recent shift toward regionally embedded growth strategies, highlighted in recent publications such as the Asian Development Outlook and CSIS. The narrative of “Eurasia rising” is no longer just Chinese-driven—it is now populated with middle powers like Uzbekistan and Mongolia asserting their agency.
Knowledge, Culture, and a Shared Past
Mirziyoyev’s visit also highlighted the human and historical dimension of the partnership. Uzbekistan has offered to increase educational quotas for Mongolian students and revitalize academic exchange, including through universities in Tashkent, Samarkand, and Urgench. Joint archaeological missions and cultural festivals—such as the Days of Uzbek Culture in Ulaanbaatar and Mongolian orchestras performing in Tashkent—serve as more than diplomatic niceties. They are vital threads in a civilizational reconnection between two peoples that once shared the routes of the Great Silk Road.
Indeed, this soft power investment aligns with broader regional aspirations. In both countries, eco-tourism and cultural tourism are gaining prominence. With Uzbekistan’s UNESCO-listed cities and Mongolia’s pristine steppe landscapes, a collaborative Ecotourism Action Plan has already been signed, including joint projects for nature reserves and conservation knowledge sharing.
This also fits with what scholars such as Peter Frankopan, in his book The Silk Roads, have long argued that Eurasia’s future depends on rediscovering the connective tissue of its past. By rooting their cooperation in shared heritage and mutual curiosity, Uzbekistan and Mongolia are fostering a partnership that is durable, not transactional.
Political Alignment and a Quiet Strategic Signal
The political alignment emerging from this visit is subtle but significant. Both nations are constitutionally neutral, but firmly support multilateralism, peaceful development, and regional dialogue. They collaborate in forums such as the United Nations and Shanghai Cooperation Organisation (SCO), and Mongolia has expressed interest in deeper ties with the Organization of Turkic States—where Uzbekistan is a key member.
In this context, the Uzbek-Mongolian declaration of comprehensive partnership is not aimed at countering any major power but at asserting autonomy. It contributes to the emerging architecture of what some scholars call “Eurasian middle diplomacy”—a model where mid-sized states collaborate laterally rather than solely through traditional great-power channels. For Mongolia, this relationship offers access to Central Asia’s population of over 75 million and a platform to reach the Persian Gulf, South Asia, and beyond through Uzbek infrastructure.
For Uzbekistan, it opens the door to East Asia via a partner that, while small in population, is geopolitically agile and resource-rich. It is a mutually empowering alignment, built not on dependence but on co-development.
Shared Environmental Challenges
Beyond trade and transport, both nations face acute environmental vulnerabilities—desertification, water stress, and climate volatility. The convergence of Uzbekistan’s “Yashil Makon” initiative with Mongolia’s “Green Belt” reforestation program indicates a willingness to jointly address ecological degradation. Scholars and climate institutions alike have called for greater cooperation across arid and semi-arid states in Eurasia.
This visit demonstrates such calls are being heeded. A particular area of collaboration could be pastureland rehabilitation, where Mongolian herders possess traditional knowledge and Uzbekistan can offer modern water management and remote sensing tools. This synergy could be critical in managing both climate adaptation and rural development, especially in fragile zones of both nations.
Looking Ahead
This visit has rightly been called historic—but its enduring value lies not in symbolism, but in systems. With a joint road map adopted, clear implementation mechanisms, and monitoring responsibilities assigned, the usual fate of high-level visits—diplomatic inertia—may well be avoided.
Of course, challenges remain. Trade volumes must be scaled up from millions to hundreds of millions. Transport corridors require security, funding, and inter-governmental synchronization. Further, bureaucratic inertia can also dilute private sector enthusiasm. But the political will, institutional alignment, and public enthusiasm on both sides offer a rare combination. In an era where de-risking, regional hedging, and economic fragmentation dominate global headlines, the Uzbekistan-Mongolia partnership offers a quiet but powerful counterpoint.
It is the story of two nations long on the periphery of international narratives, finally turning to each other and discovering opportunity in proximity. The path ahead is not without obstacles—but if nurtured, it may very well shape a new axis of Eurasian cooperation.
The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of the publication, its affiliates, or any other organizations mentioned, including Samarkand State University.
Mohammad Suhail and Mavlon Bobokhonov

SouthGobi Resources' AGM Approval Signals Governance Strength and Strategic Clarity Amid Debt Deferral www.ainvest.com

The recent Annual and Special General Meeting (ASGM) of SouthGobi Resources Ltd. has delivered a resounding vote of confidence in the company's governance, leadership, and strategic execution. With over 99.9% approval for critical resolutions—including the contentious March 2025 Deferral Agreement—the results underscore a rare alignment between stakeholders, even as the company navigates complex debt restructuring. For investors, this marks a pivotal moment to reassess SouthGobi's valuation ahead of potential recovery in Mongolia's coal sector.
Governance Triumph: A Template for Stakeholder Harmony
The ASGM's near-unanimous approvals—spanning auditor reappointment, director elections, and the JD Zhixing Deferral Agreement—reflect robust corporate governance. Notably, the 99.99% approval for the deferral agreement, despite its complexity, suggests shareholders view the deal as necessary for survival and growth. Even the abstention of JD Zhixing Fund (JDZF), SouthGobi's largest shareholder (28.89%), from voting on its own agreement, adhered to strict conflict-of-interest protocols. This recusal, mandated by Canadian and Hong Kong regulations, demonstrates a commitment to fairness for minority shareholders.
The minimal dissent (0.01% against votes) across all resolutions signals that investors trust the board's judgment and the independent governance mechanisms. An Independent Board Committee (IBC) and financial adviser validated the deferral's terms, ensuring transparency. Such rigor is critical in a company where 29% of shares are held by a single entity—a structure that could otherwise breed governance risks.
Ask Aime: What's the outlook for SouthGobi Resources?
The Strategic Imperative: Deferring Debt to Secure Operational Resilience
The March 2025 Deferral Agreement, which delays US$137.8 million in payments (including deferred interest and management fees) until August 2026, is not merely a stopgap. By stretching obligations, SouthGobi secures breathing room to pursue refinancing or restructuring without immediate liquidity crises. The deferral fees—6.4% on Convertible Debenture liabilities and 1.5% on management fees—appear reasonable compared to historical third-party financing costs (15–16.8%) and industry peer rates (3–13.2%).
The agreement's terms also include operational safeguards. SouthGobi must consult JDZF on executive appointments and provide monthly financial updates, balancing creditor protections with operational autonomy. This dual focus on stability and flexibility positions the company to capitalize on Mongolia's coal export potential, particularly to China, its primary buyer.
Risks Mitigated, but Vigilance Remains
The primary risk—default under the Convertible Debenture or Deferral Agreement—remains theoretical but material. Should SouthGobi fail to meet obligations, all deferred amounts become immediately due, risking insolvency. However, the company's commitment to “best efforts” repayment and monthly repayment discussions with JDZF suggest a collaborative approach to avoiding such outcomes.
A secondary risk lies in the variable PIK Interest component, which ties repayment to the 50-day volume-weighted average price (VWAP) of SouthGobi's shares. A prolonged slump in share price could inflate the debt burden. Yet, with the stock trading at a 52-week low of US$0.18 (as of June 2025), the downside appears limited, and any recovery in coal demand or equity markets could swiftly narrow this gap.
Bullish Thesis: Capitalize on Undervaluation Ahead of a Mongolian Coal Turnaround
SouthGobi's stock trades at a fraction of its 2023 highs, reflecting investor anxiety over debt and geopolitical risks in Mongolia. Yet, the ASGM's results and deferral agreement now provide a clearer path to sustainability. With JDZF's financial support anchored through 2026 and governance credibility bolstered, the company can focus on optimizing its Ovoot Tolgoi mine and exploring new coal deposits in the South Gobi region.
China's energy transition has created uncertainty, but coal remains a near-term staple for its power sector. Mongolia's coal exports to China, which account for 90% of SouthGobi's revenue, could rebound if Beijing prioritizes energy security over carbon neutrality in the short term. The company's low valuation (P/B of 0.3x) and 2024 net debt-to-EBITDA ratio of 2.5x (post-deferral) suggest it is undervalued relative to peers.
Conclusion: A Strategic Buy for Patient Investors
SouthGobi's AGM outcomes have transformed a potential governance crisis into a catalyst for stakeholder alignment. The deferral agreement, while not a permanent solution, buys time for strategic execution. For investors, the stock's current valuation offers an asymmetric opportunity: limited downside given its low price and balance sheet flexibility, with upside exposure to a Mongolian coal rebound.
Investment recommendation: Accumulate positions in SGQHF at current levels, targeting a 12-month price target of US$0.30–0.40, assuming stabilization in debt talks and a 20% rise in coal exports to China. Monitor closely for progress in debt restructuring and quarterly operational updates.
The path forward is fraught with risks, but SouthGobi's governance credibility and strategic clarity now justify a bullish stance.