Business
SouthGobi Announces First Quarter 2022 Financial and Operating Results
HONG KONG, CHINA / ACCESSWIRE / June 6, 2022 / SouthGobi Resources Ltd. ( Toronto Stock Exch...
About this update from Southgobi Resources Ltd.
[{"type":"text","content":"SouthGobi Announces First Quarter 2022 Financial and Operating ResultsHONG KONG, CHINA / ACCESSWIRE / June 6, 2022 / SouthGobi Resources Ltd. (Toronto Stock Exchange (\"TSX\"):SGQ, Hong Kong Stock Exchange (\"HKEX\"):1878) (the \"Company\" or \"SouthGobi\") today announces its financial and operating results for the three months ended March 31, 2022. All figures are in U.S. dollars (\"USD\") unless otherwise stated.Significant Events and HighlightsThe Company's significant events and highlights for the three months ended March 31, 2022 and the subsequent period to June 6, 2022 are as follows:Operating Results - In response to the increase in the number of the Coronavirus Disease 2019 (\"COVID-19\") cases in Ejinaqi, a region in China's Inner Mongolia Autonomous Region where the custom and border crossing are located, reported in late October 2021, the local government authorities have imposed stringent preventive measures throughout the region, including the temporary closure of the Ceke Port of Entry located at the border of Mongolia and China. Accordingly, the Company's coal exports into China were suspended from November 2021 to May 2022. In order to control the inventory level and preserve the Company's working capital, the Company temporarily suspended mining operations (including coal mining) beginning in early November 2021. Financial Results - The Company recorded a $0.2 million loss from operations in the first quarter of 2022 compared to a $7.5 million profit in the first quarter of 2021. The financial results were impacted by the decreased sales resulting from the temporary closure of the Ceke Port of Entry experienced by the Company during the quarter. Impact of the COVID-19 Pandemic - On May 25, 2022, the Ceke Port of Entry re-opened for coal export on a trial basis, with a limited number of trucks permitted to cross the border during the trial period. The Company has been proactively adjusting its sales strategy in response and exploring opportunities to expand its sales accordingly. Although the export of coal from Mongolia to China has resumed as of the date hereof, there can be no guarantee that the Company will be able to continue exporting coal to China, or the Chinese-Mongolian border crossings would not be the subject of additional closure as a result of COVID-19 or any variants thereof in the future. The Co...