Gobi Mining (GMT) Issues $300M Nordic Bonds to Expand Coal Transport
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
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Source: Benzinga
- Bond Issuance Overview: Gobi Mining plans to issue $300 million in senior secured bonds with a 14.5% coupon, expected to attract investors interested in emerging markets, with significant price appreciation potential as the company's credit profile improves.
- Railway Expansion Plan: The proceeds will fund the expansion of the railway transporting coal from the Tavan Tolgoi basin to China, aiming to increase annual transport capacity from 8-9 million tonnes to 20-25 million tonnes, significantly enhancing coal export efficiency and reducing environmental impact.
- Financial Projections: The company projects revenue growth from $28 million in 2025 to $479 million by 2030, with EBITDA margins between 30%-40%, indicating strong growth potential and solid financial health.
- Risks and Opportunities: While reliance on the Chinese market poses risks, Gobi Mining's government concession and partnership with MTZ provide stability, and ESG benefits appeal to impact investors, enhancing the project's attractiveness.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
