Coal output of SouthGobi reaches 90,000 tons since export resumption www.zgm.mn
The border closure has adversely impacted sales and cash flows of Southgobi Resources Ltd. in the first and second quarters of 2020. Since the Shiveekhuren-Sekhe border resumption, the company has been exported approximately 90,000 tons of coal within one month. In accordance with the company’s statement, coal will not be mined in May since existing coal has been purchased from the warehouse. SouthGobi also ceased major mining operations since February 11. The volume of coal export through Shiveekhuren-Sekhe is lower than usual and limited. China expects that fall in coal export will continue to affect the company’s revenue, cash flow, and profit. Southgobi Resource Ltd predicted a loss of USD 18 million in the first quarter of 2020 and the company’s net income stood at USD 2.1 million during the same period of the previous year. SouthGobi Ltd. shares traded at HKD 0.6 on the Hong Kong Stock Exchange, showing no fluctuation.
Published Date:2020-05-01