ENP Newswire -
Release date- 11072014 -
All figures are in U.S. Dollars unless otherwise stated.
The Company continues to operate under difficult market conditions. Coal prices in
The changes in the Company's cash position in periods noted above are inclusive of cash interest paid on the
The Company continues to actively seek additional sources of financing to continue operating and meet its objectives, which includes increasing the level of prepaid coal sales. As at
Sale of Tsagaan Tolgoi Deposit
The Company has completed the sale of Tsagaan Tolgoi Deposit in the second quarter of 2014 for an amount of
Tax Investigation Case
The trial date for the tax investigation case against
Coal production in the second half of 2014 will be paced to meet contracted sales volumes. The Company continues to experience negative impacts on its margins and liquidity and there can be no assurance that the Company will have sufficient funding for the balance of 2014 to be able to continue as a going concern, as more fully detailed in its Management's Discussion and Analysis for the quarter ended
Therefore the Company is actively seeking additional sources of financing to continue operating and meet its objectives. The Company remains focused on minimizing uncommitted capital expenditures while preserving its growth options.
SouthGobi is listed on the
SouthGobi is focused on exploration and development of its metallurgical and thermal coal deposits in
Tel: +976 70070710
This document includes forward-looking statements. Forward-looking statements include, but are not limited to: the Company's expectations of sufficient liquidity and capital resources to meets its ongoing obligations and future contractual commitments, including the Company's ability to secure additional funding; the possibility of the CIC convertible debenture and all accrued and unpaid interest becoming immediately due; the continued pressure on the coal prices in
When used in this document, the words such as 'plan', 'estimate', 'expect', 'intend', 'may', and similar expressions are forward-looking statements. Although SouthGobi believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.
Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading 'Risk Factors' in SouthGobi's Management's Discussion and Analysis for the year ended
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