Coking coal producer Mongolian Mining Corp (MMC) is struggling to cope with the impacts of high costs and low coal prices, and according to Moody's Investors Service, could exhaust its cash supply by the end of 2015.

The ratings company said in a statement last month that MMC may spend the $253 million of cash it had at the end of last year by December 31. It said that revenue and sales volumes were falling as the average price of hard coking coal declined. The company replenished cash with a HK$1.56 billion (US$201 million) rights issue last December.

Earlier this year Mongolian Mining reported a loss of $282.8 million for 2014, including an impairment of $190 million on mining rights, as margins shrunk and transport costs to customers in China increased.

“Mongolian Mining could deplete cash-on-hand by end-2015 due to a higher rate of cash burn,” Moody’s analyst Dylan Yeo said. “The rights issue last year and divestments of most of its non-core assets also left it with limited alternative sources of liquidity.”

In another report on MMC, JPMorgan Chase & Co, said that one bright spot may be MMC’s joint venture to acquire the Tavan Tolgoi coalfield.

Tavan Tolgoi, 270km north of the Chinese border in the Gobi Desert, is one of several large-scale mineral deposits that Mongolia expects will stimulate the economy. In December, a group comprising Mongolian Mining unit Energy Resources LLC, China Shenhua Energy Co and Sumitomo Corp won the permit to develop a portion of the deposits, beating a bid from US mining company Peabody Energy Corp.

“Its joint venture to acquire the Tavan Tolgoi coalfield would likely dictate the direction of bond prices in the near term,” Soo Chong Lim, a Hong Kong-based credit analyst at JPMorgan, wrote. “The joint venture would enhance the asset backing of Mongolian Mining and potentially also give it some leeway to solve its balance sheet issue.”

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