Page 8 - AsiaElec Week 43 2021

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SouthGobi issues profit warning

after COVIDdisruption in Mongolia

MONGOLIA MONGOLIA focused coal miner SouthGobi local government authorities to impose strin-
Resources has issued a profit warning and gent preventive measures throughout the region,
business update to shareholders and potential including the temporary closure of the Ceke Port
investors. of Entry located at the borders of Mongolia and
The Hong Kong and Toronto-listed company China.
stated that based on its preliminary assessment “Accordingly, the Company’s coal exports
of the unaudited management accounts for the into China have been suspended and the Com-
quarter ended 30 September and the informa- pany anticipates the temporary closure of the
tion currently available to the company, “it is Ceke Port of Entry will have an adverse impact
expected that the Company would record a net on the Company’s sales and cash flow. The Com-
loss between USD7 million and USD11 mil- pany will continue to closely monitor the devel-
lion for the quarter ended 30 September 2021, opment of the coronavirus outbreak and status
as compared to a net profit of USD1.1 million of the border closure and will make further
for the quarter ended 30 September 2020. The announcement(s) as and when appropriate.”
expected net loss is primarily attributable to the Shareholders and potential investors of the
continued impact caused by the COVID-19 pan- Company are advised to exercise caution when
demic, including, but not limited to, restrictions dealing in the shares of the Company.
on the number of trucks of coal crossing the bor- SouthGobi owns and operates Ovoot Tolgoi
der at the Ceke Port of Entry during the third coal mine in Mongolia. It also holds the mining
quarter of 2021”. licences of its other metallurgical and thermal
Giving a business update, SouthGobi said: coal deposits in the country’s South Gobi region.
“The recent increase in the number of COVID- The company sells its coal to customers in
19 cases in Ejinaqi, a region in China’s Inner China.™
Mongolia Autonomous Region, prompted the

P8 www. NEWSBASE .com Week 43 27•October•2021