Business
SouthGobi Announces First Quarter 2026 Financial and Operating Results
HONG KONG, HK / ACCESS Newswire / May 14, 2026 / SouthGobi Resources Ltd. ( Hong Kong Stock Ex...
About this update from Southgobi Resources Ltd.
[{"type":"text","content":"SouthGobi Announces First Quarter 2026 Financial and Operating ResultsHONG KONG, HK / ACCESS Newswire / May 14, 2026 / 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, 2026. 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, 2026 and the subsequent period to May 14, 2026 are as follows:Operating Results - The Company continues to expand the scale of mining operations in 2026, 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. In addition, the Company also continues to expand the categories of coal products in its portfolio, including mixed coal, wet washed coal and dry processed coal, which further increases the Company's coal export volume.The Company recorded sales volume of 3.1 million tonnes for the first quarter of 2026 compared to 2.1 million tonnes for the first quarter of 2025, while the Company recorded an average realised selling price of $54.4 per tonne for the first quarter of 2026 compared to $59.5 per tonne for the first quarter of 2025. The decrease in the average realised selling price was primarily attributable to prevailing market uncertainty and cautious buyer sentiment in the Chinese coal market. As a result, the Company adjusted its sales strategy and selling price to maintain its sales volume.Financial Results - The Company recorded a $4.6 million profit from operations for the first quarter of 2026 compared to a $15.7 million loss from operations for the first quarter of 2025. The financial results were impacted by the increased sales volume, as well as improved cost control on the coal production process during this period.Notice from Mongolian Government Plenipotentiary and designation of Company's mining deposits as mineral deposits of strategic importance - On April 2, 2025, Southgobi Sands LLC (\"SGS\") received a letter from a plenipotentiary representative of the Mongolian government (the \"Letter\") which inv...