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SouthGobi Resources ( (TSE:SGQ) ) just unveiled an update.
SouthGobi Resources has warned investors that it expects to swing to a substantial net loss attributable to equity holders of between US$151.9 million and US$185.6 million for fiscal 2025, compared with a net profit of about US$92.5 million a year earlier. The reversal is driven by lower average realized selling prices, a shift toward selling more higher-cost processed coal, and significant impairment charges on coal stockpiles and cash-generating units totaling roughly US$119.3 million.
The company, which is still finalizing its unaudited 2025 accounts ahead of a detailed results release on March 27, 2026, cautioned that the figures may be subject to adjustment. The profit warning signals pressure on SouthGobi’s margins and asset values amid weaker coal pricing and a costlier product mix, and the board has advised shareholders and potential investors to exercise caution when trading the company’s shares.
More about SouthGobi Resources
SouthGobi Resources Ltd. is a coal mining company continued under the laws of British Columbia, Canada, and listed on both the Hong Kong Stock Exchange and the TSX Venture Exchange. The group focuses on producing and selling coal, including processed coal products, with operations that expose it to fluctuations in coal prices, product mix, and associated production costs in global commodity markets.
For detailed information about SGQ stock, go to TipRanks’ Stock Analysis page.