Star Metro - SouthGobi Announces Profit Warning

The Company wishes to inform its shareholders and potential investors that, based on the preliminary assessment of the Company and its subsidiaries' (the "Group") unaudited management accounts for the six months ended June 30, 2025 ("Interim Period") and the information currently available to the Company, the Company is expected to record a revenue in the range of US$250.3 million to US$306.0 million for the Interim Period, as compared to the revenue of approximately US$175.0 million for the corresponding period in 2024. The expected increase in revenue was due to increased sales volume during the Interim Period. However, in contrast to the increased revenue, the Company is expected to record a net loss attributable to equity holders of the Company between approximately US$44.1 million and US$53.9 million for the Interim Period, as compared to a net profit attributable to equity holders of the Company of approximately US$10.2 million for the corresponding period in 2024. The expected net loss attributable to equity holders of the Company were mainly attributable to (i) the decrease in average realised selling price; (ii) the change in product mix as the Company sold more processed coal with higher production costs; and (iii) an impairment loss on coal stockpiles of US$12.3 million was recorded during the Interim Period.

As at the date of this announcement, the Company is still in the process of preparing and finalizing its financial results for the Interim Period. The information contained in this announcement is based on the preliminary assessment of the information currently available to the Company and the unaudited management accounts of the Group, which have not been reviewed or audited by the Company's auditors and may be subject to adjustments. Details of the Company's financial information and performance will be disclosed in the results announcement for the Interim Period, which is to be published on August 14, 2025 (Thursday).

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

About SouthGobi

SouthGobi, listed on the Hong Kong Stock Exchange and the TSX Venture Exchange, 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: SouthGobi Resources Ltd.

View the original press release on ACCESS Newswire

S.Lapointe--SMC