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SouthGobi Announces Third Quarter 2022 Financial and Operating Results
HONG KONG, CHINA / ACCESSWIRE / November 14, 2022 / SouthGobi Resources Ltd. ( Toronto Stock...
About this update from Southgobi Resources Ltd.
[{"type":"text","content":"SouthGobi Announces Third Quarter 2022 Financial and Operating ResultsHONG KONG, CHINA / ACCESSWIRE / November 14, 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 and nine months ended September 30, 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 September 30, 2022 and the subsequent period to November 14, 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 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. Following the reopening of the Ceke Port of Entry for coal export on May 25, 2022, coal sales increased from 0.2 million tonnes in the third quarter of 2021 to 0.6 million tonnes in the third quarter of 2022.Since May 25, 2022, the number of trucks permitted to cross the Chinese-Mongolian border, as well as the volume of coal exports have increased. As a result, the Company has gradually resumed mining operations beginning on July 15, 2022. The Company's major mining operations, including coal mining, have resumed and the Company expects to increase the volume of coal production in a gradual manner, while coal processing shall remain suspended for the time being.The Company experienced an increase in the average selling price of coal from $53.5 per tonne in the third quarter of 2021 to $65.4 per tonne in the third quarter of 2022, due to improved market conditions in China.Financial Results - The Company recorded a $3.5 million profit from operations in the third quarter of 2022 compared to a $1.0 million profit from operations in the third quarter of 2021. The financial results for the third quarter of 2022 were impacted by the foreign exchange gain of $2.2 million and the incr...