VANCOUVER, May 25, 2022 - SouthGobi Resources Ltd. (TSX:SGQ) (HK:1878) ("SouthGobi" or the "Company") announces that the purpose of this announcement is to inform the Company's shareholders ("Shareholders") and potential investors of the latest business update made further to its announcement dated November 2, 2021 (the "Announcement").
The Company is pleased to announce that, on May 25, 2022, the Ceke Port of Entry re-opened for coal export on a trial basis, with a limited number of trucks permitted to cross the border during the trial period. The Company has been proactively adjusting its sales strategy to accommodate the situational changes and explore opportunities to expand its sales. As of today, the Company anticipates that its existing coal inventories are sufficient to satisfy expected sales demand for a period of at least 4 months following the resumption of coal exports to China.
Although the export of coal from Mongolia to China resumes as of the date hereof, there can be no guarantee that the Company will be able to continue exporting coal to China, or the border crossings would not be the subject of additional closure as a result of COVID-19 or any variants thereof in the future. The Company anticipates that its revenue, liquidity and profitability will continue to be adversely impacted until such time as the coal exports into China are allowed to resume at normal levels.
The Company will continue to closely monitor the situation at the Ceke Port of Entry, including the number of trucks that are permitted to cross the border and the impact on the operations and financials of the Company; and will from time to time review the most suitable time for the full resumption of its mining operation. Further updates will be provided in due course as and when appropriate.
Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares 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. It also holds the mining licences of its other metallurgical and thermal coal deposits in South Gobi region of Mongolia. SouthGobi produces and sells coal to customers in China.
Contact:
Investor Relations
Office: +852 2156 1438 (Hong Kong)
+1 604 762 6783 (Canada)
Email: info@southgobi.com
Website: www.southgobi.com
SOURCE: SouthGobi Resources Ltd.
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https://www.accesswire.com/702652/Voluntary-Announcement--Business-Update
