SouthGobi Resources Ltd. has provided a corporate update further to its announcement dated 30 March 2020 as required under the terms of the Canadian Securities Administrators’ temporary blanket relief.
As a result of the closure of Mongolia’s southern border with China, the company suspended coal exports to China effective 11 February 2020. On 28 March 2020, the Ceke Port of the Mongolian-Chinese border was re-opened for coal export on a trial basis, with a limit imposed on the total volume of coal that is permitted to be exported during the trial period. The company’s coal export from March 28 to today amounted to approximately 90 000 t.
In order to preserve its working capital, the company has ceased the coal mining activities since 11 February 2020. While the company is continuing the coal blending activities, the coal mining activities will remain suspended in May 2020. The company anticipates that its existing coal inventories are sufficient to satisfy expected sales demand for a period of at least two months as of the date hereof.
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 adverse impact may negatively impact the price and volatility of the securities of the company, shareholders and potential investors of the company are advised to exercise caution when dealing in the securities of the company. The company will continue to closely monitor the development of the COVID-19 pandemic and its impact on the operations and financials of the company, and will make further announcement when appropriate.
The company confirms that its management and other insiders are subject to the company’s corporate disclosure, confidentiality and securities trading policy which imposes a trading blackout restrictions that reflect the principles set out in National Policy 11-207 – Failure-to-File Cease Trade Orders and Revocations in multiple jurisdictions and such trading restrictions will be in place until such time as the company files the 2019 annual filings.
The company expects to file the 2019 annual filings on 14 May 2020. Until such time as the company files its 2019 annual filings, shareholders and potential investors of the company are advised to exercise caution when dealing in the securities of the company.
Read the article online at: https://www.worldcoal.com/coal/29042020/southgobi-gives-corporate-update/