PROFIT WARNING VANCOUVER – SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi” or the “Company”) wishes to inform the shareholders of the Company and potential investors that, based on the Company's preliminary assessment of the operational data and the information
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August 5, 2020
PROFIT WARNING
VANCOUVER – SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi” or the
“Company”) wishes to inform the shareholders of the Company and potential investors that,
based on the Company's preliminary assessment of the operational data and the information
currently available, the Company expects to record a net loss in the range of USD 16 million
to USD 21 million for the first half of 2020, as compared with a net profit of USD 4.2 million for
the first half of 2019. The decrease in net profit is mainly due to the decrease of sales volume
from 1.94 million tonnes in the first half of 2019 to 0.68 million tonne in the first half of 2020 as
a result of the measures to cont rol the spread of COVID-19 pandemic imposed by the
governments in China and in Mongolia , including the Mongolian -Chinese border closure
during February to March 2020 and the restrictions of coal transport ation in Mongolia and
export into China during April to June 2020.
The information contained in this announcement is based on the preliminary review of the
operational data and other information currently available to the Company, which has not been
reviewed by the Company’s auditors and is subject to further adjustments.
SHAREHOLDERS AND POTENTIAL INVESTORS OF THE COMPANY SHOULD
EXERCISE CAUTION WHEN THEY DEAL OR CONTEMPLATE DEALING IN THE
COMPANY’S SHARES OR OTHER SECURITIES OF THE COMPANY.
About SouthGobi
SouthGobi, listed on the Toronto and Hong Kong stock exchanges, owns and operates its
flagship Ovoot Tolgoi coal mine in Mongolia. SouthGobi produces and sells coal to customers
in China.
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Contact:
Investor Relations
Office: +852 2156 1438 (Hong Kong)
+1 604 762 6783 (Canada)
Email: [email protected]
Website: www.southgobi.com