Skip to main content

SouthGobi Announces Profit Warning and Business Update

Written by Customer Service on . Posted in Public Companies.

VANCOUVER, British Columbia, Oct. 26, 2021 (GLOBE NEWSWIRE) — SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi” or the “Company”) wishes to inform its shareholders and potential investors that, based on the Company’s preliminary assessment of the unaudited management accounts for the quarter ended 30 September 2021 and the information currently available to the Company, it is expected that the Company would record a net loss between USD7 million and USD11 million for the quarter ended 30 September 2021, as compared to a net profit of USD1.1 million for the quarter ended 30 September 2020. The expected net loss is primarily attributable to the continued impact caused by the COVID-19 pandemic, including, but not limited to, restrictions on the number of trucks of coal crossing the border at the Ceke Port of Entry during the third quarter of 2021.

As at the date of this announcement, the Company is still preparing and finalizing its quarterly results for the quarter ended 30 September 2021. The information contained in this announcement is based on the preliminary assessment of the information currently available to the Company and the unaudited management accounts, which are subject to adjustments. Details of the Company’s financial information and performance will be disclosed in the 2021 third quarter results announcement which is expected to be published in November 2021.

Business Update – Impact of the coronavirus outbreak

The recent increase in the number of COVID-19 cases in Ejinaqi, a region in China’s Inner Mongolia Autonomous Region, prompted the local government authorities to impose stringent preventive measures throughout the region, including the temporary closure of the Ceke Port of Entry located at the borders of Mongolia and China. Accordingly, the Company’s coal exports into China have been suspended and the Company anticipates the temporary closure of the Ceke Port of Entry will have an adverse impact on the Company’s sales and cash flow. The Company will continue to closely monitor the development of the coronavirus outbreak and status of the border closure and will make further announcement(s) as and when appropriate.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

About SouthGobi
SouthGobi, listed on the Toronto and Hong Kong stock exchanges, owns and operates its flagship Ovoot Tolgoi coal mine in Mongolia. It also holds the mining licences of its other metallurgical and thermal coal deposits in South Gobi region of Mongolia. SouthGobi produces and sells coal to customers in China.

Contact:
Investor Relations
Office: +852 2156 1438 (Hong Kong)
          +1 604 762 6783 (Canada)
Email: info@southgobi.com
Website: www.southgobi.com

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.