Business
SouthGobi Announces First Quarter 2025 Financial and Operating Results
HONG KONG, CHINA / ACCESS Newswire / May 15, 2025 / SouthGobi Resources Ltd. ( Hong Kong Stock...
About this update from Southgobi Resources Ltd.
[{"type":"text","content":"SouthGobi Announces First Quarter 2025 Financial and Operating ResultsHONG KONG, CHINA / ACCESS Newswire / May 15, 2025 / SouthGobi Resources Ltd. (Hong Kong Stock Exchange (\"HKEX\"):1878)(TSX Venture Exchange (\"TSX-V\"):SGQ) (the \"Company\" or \"SouthGobi\") today announces its financial and operating results for the three months ended March 31, 2025. 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, 2025 and the subsequent period to May 15, 2025 are as follows:Operating Results - The Company increased the scale of its mining operations since 2024, as well as implementing various coal processing methods, including screening, wet washing and dry coal processing, which have resulted in improved coal quality and enhanced production volume and growth of coal export volume into China during the period.In response to the market demand for different coal products, the Company focused on expanding the categories of coal products in its portfolio, including mixed coal, wet washed coal and dry processed coal. In addition, the Company has experienced success with processing its inventory of F-grade coal products through cost-effective screening procedures. As a result of the improvement in the quality of the processed F-grade coal, the Company was able to meet the import coal quality standards established by Chinese authorities and has been exporting this product to China for sale since the first quarter of 2024, further enhancing the Company's coal export volume.The Company recorded sales volume of 2.1 million tonnes for the first quarter of 2025 compared to 1.1 million tonnes for the first quarter of 2024, while the Company recorded an average realised selling price of $59.5 per tonne for the first quarter of 2025 compared to $79.5 per tonne for the first quarter of 2024. The decrease in the average realised selling price was mainly due to the Company facing headwinds in the China coal market since 2024, leading to the Company changing its product mix to sell a greater percentage of lower-priced coal products.Financial Results - The Company recorded a $15.7 million loss from operations for the first quarter of 2025 compared to $32.1 million profit from operation for the first quarter of 2024. The finan...