Southgobi Resources Ltd. · TSXV:SGQ
Southgobi Resources — Q1 2015 Earnings Presentation
8 slides from Southgobi Resources's earnings presentation, May 12, 2015
Slide 1: 2015 First Quarter Financial Results
2015 First Quarter Financial Results May 12, 2015 2015 First Quarter Results Presentation MAY 2015 | 1
Slide 2: Cautionary statement
Cautionary statement Forward-looking statements This presentation includes certain “forward-looking statements.” All statements, other than statements of historical fact, are forward-looking statements that involve various risks and uncertainties. There can be no assurances that such statements will
Slide 3: Q1 2015 highlights and subsequent events
Q1 2015 highlights and subsequent events • Safety continues to be a key priority. No lost time injury year to date 2015. • Coal market conditions remain challenging in China. • In the first quarter of 2015, Company’s sales volume remained low and mining operations were curtailed to preserve liquidit
Slide 4: Coal prices and demand in China remain weak
Coal prices and demand in China remain weak Chinese coking coal prices Chinese coking coal imports RMB/t incl VAT Mt Mongolia is 2nd largest coking coal exporter to China in 2014 900 and 2015 YTD, with 24% market share of its coking coal import 8 800 7 700 Baotou primary coking 6 600 5 500 Wuhai was
Slide 5: Q1 financial results reflect period of curtailment
Q1 financial results reflect period of curtailment Q1 2015 Q4 2014 Comment and Significant items Raw coal production (millions of tonnes) - 0.21 Coal sales (millions of tonnes) 0.18 0.37 Average realized price ($/tonne) 12.66 15.04 Reflects lower product prices and change in product mix $ in million
Slide 6: Well positioned to capture benefits of strategy with improved cost structure
Company is well positioned to capture the benefits of its strategy with an improved cost structure… Unit cash costs of product sold (excl. idled mine asset costs) • Unit cash costs continued to decrease as Company In $ per tonne maintained its focus on improving equipment 25 -45% productivity and op
Slide 7: …and relentless focus on liquidity
…and relentless focus on liquidity Cash balance • Relentless in maintaining liquidity through adverse conditions in coal markets: In $ million 10 8.8 o Curtailed mining operations and sold from existing stockpiles in Q1 2015 4.8 5 3.8 3.6 o Completed private placements for total gross proceeds of $7
Slide 8: Outlook
Outlook Outlook • Market outlook – Slowdown in China’s economy – Coal market expected to remain challenged • 2015 and medium-term objectives – Execute step change improvement in Company’s sales, marketing and logistics capabilities by expanding the Company’s customer base further inland in China in