Business
SouthGobi Announces Unaudited First Quarter 2023 Financial and Operating Results
HONG KONG / ACCESSWIRE / May 19, 2023 / SouthGobi Resources Ltd. ( Hong Kong Stock Exchange ("...
About this update from Southgobi Resources Ltd.
[{"type":"text","content":"SouthGobi Announces Unaudited First Quarter 2023 Financial and Operating ResultsHONG KONG / ACCESSWIRE / May 19, 2023 / SouthGobi Resources Ltd. (Hong Kong Stock Exchange (\"HKEX\"): 1878, TSX Venture Exchange (\"TSX-V\") : SGQ) (TSX-V:SGQ)(HK:1878) (the \"Company\" or \"SouthGobi\") today announces its financial and operating results for the three months ended March 31, 2023. 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, 2023 and the subsequent period to May 19, 2023 are as follows:Operating Results - In late 2022, the Company resumed its major mining operations, including coal mining, and the volume of coal production has gradually increased since then. The Company also resumed coal washing operations in April 2023. In response to the market demand, the Company has been mixing some higher ash content product with its semi-soft coking coal product and selling this mixed product to the market as processed coal.The Company recorded sales volume of 0.6 million tonnes for the first quarter of 2023. The Company also recorded an average realised selling price of $104.1 per tonne in the first quarter as a result of an improved market conditions in China, expansion of its sales network and diversification of its customer base.Financial Results - The Company recorded a $27.9 million profit from operations in the first quarter of 2023 compared to a $0.2 million loss from operations in the first quarter of 2022. The financial results were impacted by increased sales volume experienced by the Company and improvement of average realised selling price during the quarter.Convertible Debenture - On March 24, 2023, the Company and JD Zhixing Fund L.P. (the \"JDZF\") entered into an agreement (the \"2023 March Deferral Agreement\") pursuant to which JDZF agreed to grant the Company a deferral of (i) the cash interest payment of approximately $7.9 million (the \"2023 May Cash Interest\") which will be due and payable on May 19, 2023 under the Convertible Debenture; (ii) the cash interest, management fees, and related deferral fees of approximately $8.7 million (the \"2022 May Deferred Amounts\") which are due and payable to JDZF on or before August 31, 2023 under the deferral agreement dated May 13, 2022; (iii)...