SouthGobi Records Production Increase and Revenue Decrease in 2013

SouthGobi Resources Ltd. (TSX:SGQ) provided its financial and operating results for the fourth quarter of 2013, as well as for 2013 as a whole, commenting that for the entirety of 2013 it put out 3.06 million tonnes of raw coal. That’s up from 1.33 million tonnes in 2012.

Financial results include:

The Company recorded a $196.8 million loss from operations in 2013 compared to a $124.2 million loss from operations in 2012 and a $237.5 million net loss in 2013 compared to a $97.5 million net loss in 2012. The 2013 loss from operations was negatively impacted by $20.7 million of coal stockpile impairments (2012: $20.5 million), $30.4 million of idled mine asset costs (2012: $53.0 million) and $121.1 million of impairment losses recorded in other operating expenses (2012: $35.5 million). The Company’s loss from operations was $24.6 million in 2013 excluding the impact of the above noted items (2012: $15.2 million).

Revenue was $58.6 million in 2013 compared to $78.1 million in 2012. The Company sold 3.26 million tonnes of coal in 2013 at an average realized selling price of $24.25 per tonne compared to sales of 1.98 million tonnes in 2012 at an average realized selling price of $47.49 per tonne. Revenue decreased due to lower average realized selling prices for the Company’s coal products. Following the softening of coal markets in mid-2012, the coal markets in China continued to be challenging in 2013 with certain coal price indices in China reaching four year lows during the year. The decrease in average realized selling prices for the Company’s coal products was partially offset by higher sales volumes in 2013 compared to 2012.

Click here to read the full SouthGobi Resources Ltd. (TSX:SGG) press release.