SouthGobi Resources Ltd. · TSXV:SGQ
SouthGobi Resources — Q2 2010 Earnings Presentation
15 slides from SouthGobi Resources's earnings presentation, August 2010
Slide 1: Q2 Interim Results 2010
TSX: SGQ HKEx: 1878 Q2 INTERIM RESULTS 2010
Slide 2: Disclaimer
Disclaimer 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 prove acc
Slide 3: Key attributes
Key attributes Leading position in new coal basin – Ovoot Khural Basin Asset location Attributes Early mover – already in production Coal is generally good quality Market dynamic is strong Potential to become a regional multi-mine play Fully funded / well capitalized Strong China connect
Slide 4: Safety performance
Operating performance Safety Key safety measures (January 2009 to June 2010) 1400 7 Hazard Reporting Frequency Rate Lost Time Injury Frequency Rate 1200 6 1000 5 800 4 600 3 400 2 200 1 0 0 Oct Jan Jun Jan Aug Sep Nov Dec June Jul Apr Apr Feb Mar Feb Mar May May 2009 2010 Hazard Reporting Frequency
Slide 5: Mining performance: coal production and waste movement
Operating performance Mining Coal production and waste material movement (April 2008 – June 2010) 300 800 Impact of new 996 fleet Waste Material Mined - BCM (000's) Self imposed slow-down and suspension but slow commissioning 700 250 to deal with excess inventories Coal Production (000's) 600 Poor t
Slide 6: Marketing performance: coal sales and average selling prices
Operating performance Marketing Coal sales and average selling prices (April 2008 to June 2010) 250 50.0 45.0 Average Selling Price (US$/t) 200 40.0 Coal Sales (000's) 35.0 150 30.0 25.0 100 20.0 15.0 50 10.0 5.0 0 0.0 Oct Oct Jun Jan Jun Jan Aug Sep Nov Dec Aug Sep Nov Dec June Jul Jul Apr Apr Apr
Slide 7: Exploration performance
Operating performance Exploration Exploration activity (April 2008 to June 2010) 25 Record level of exploration activity 20 15 (000's) 10 5 0 Oct Oct Jun Jan Jun Jan Aug Sep Nov Dec Aug Sep Nov Dec June Jul Jul Apr Apr Apr Feb Mar Feb Mar May May May 2008 2009 2010 Drilling (m) Trenching (cubic m) 7
Slide 8: Other recent achievements
Other recent achievements Operating Commenced construction of the basic coal handling facility Corporate Raised US$414m in HKEx listing in January 2010 Converted half (US$250m) of CIC convertible debenture in March 2010 Authorized buy-back of up to 5 million shares (2.7% of shares outstandin
Slide 9: Operating results
Operating results Shipped approx. 449,000 tonnes of coal, average price $43/tonne Operating revenues increased to $17.7 million in Q2 2010, from $13.9 million in Q1 2010, from $10.7 million in Q2 2009 Mine operations income increased to $4.4 million in Q2 2010, from $1.2 million in Q1 2010, fr
Slide 10: Operating results
Operating results Net income of $53.3 million in 3 months ended June 30, 2010, compared to a net loss of $168.3 million for three months ended March 31, 2010 vs. net loss of $7.9 million in same period in 2009 Income from continuing operations of $72.9 million in Q2 2010, vs. $600,000 in Q1 2010
Slide 11: Consolidated Financial Statements
Consolidated Financial Statements Condensed Consolidated Interim Statement of Comprehensive Income (unaudited) (Expressed in thousands of U.S. Dollars, except for share and per share amounts) Three months ended Six months ended June 30, June 30, Notes 2010 2009 2010 2009 CONTINUING OPERATIONS Revenu
Slide 12: Consolidated Financial Statements (Con't)
Consolidated Financial Statements (Con’t) Condensed Consolidated Interim Statement of Financial Position(unaudited) (Expressed in thousands of U.S. Dollars) As at June 30, December 31, Notes 2010 2009 ASSETS Current assets Cash and cash equivalents 9 $ 667,204 $ 357,342 Trade and other receivables 1
Slide 13: Operating statistics
Operating statistics Three months ended Six months ended June 30, June 30, 2010 2009 2010 2009 Volumes, Prices and Costs Coal production (millions of tonnes) 0.62 - 0.84 0.16 Coal sales (millions of tonnes) 0.45 0.38 0.87 0.51 Average realized sales price (per tonne) $ 42.63 $ 29.71 $ 39.17 $ 29.60
Slide 14: Outlook
Outlook Market seems robust Near-term operating issues to constrain sales rate for remainder of 2010 and may impact beyond Less better quality #5 seam coal available in upcoming mine plan Some higher sulphur in Sunset Pit, particularly #8/9/10 seams Prices rise again for Q3 over Q2 but ove
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