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SouthGobi Announces Second Quarter 2024 Unaudited Financial and Operating Results
HONG KONG, CHINA / ACCESSWIRE / August 14, 2024 / SouthGobi Resources Ltd. ( Hong Kong Stock Exc...
About this update from Southgobi Resources Ltd.
[{"type":"text","content":"SouthGobi Announces Second Quarter 2024 Unaudited Financial and Operating ResultsHONG KONG, CHINA / ACCESSWIRE / August 14, 2024 / 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 and six months ended June 30, 2024. 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 June 30, 2024 and the subsequent period to August 14, 2024 are as follows:Operating Results - The Company has been increasing the scale of its mining operations since 2023, 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 quarter.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 1.2 million tonnes for the second quarter of 2024 compared to 0.9 million tonnes for the second quarter of 2023, while the Company recorded an average realised selling price of $77.6 per tonne for the second quarter of 2024 compared to $95.3 per tonne for the second quarter of 2023. The decrease in the average realised selling price was mainly due to changes in the Company's product mix and decreased pricing for premium semi-soft coking coal and processed coal.Build-Operate-Transfer Agreement - On July 15, 2024, the Company's wholly-owned Mongolian subsidiary, Southgobi Sands LLC (\"SGS\"), entered into a Build-Operate-Transfer agreement (the \"BOT Agreement\") with Tangshan Shen...