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SouthGobi posts Q1 loss, minimal revenue due to curtailment of coal mining

HONG KONG – SouthGobi Resources Ltd. (TSX:SGQ) says it generated US$3.3 million of revenue in the first quarter, a period when most of the Canadian company’s coal mining activities in Mongolia were shut down.

The Vancouver-based company’s revenue was down from US$40.1 million a year earlier, before the curtailment began in June 2012.

SouthGobi’s net loss in the three months ended March 31, reported in U.S. currency, was $24.9 million, or 14 cents per share.

On an adjusted basis, the loss was $11.6 million.

A year earlier, SouthGobi had a profit of US$3.1 million of net income, or two cents per share of net income or US$7 million of adjusted income.

On a quarter-to-quarter comparison, SouthGobi showed an improvement.

In the fourth quarter of 2012, SouthGobi — a subsidiary of Rio Tinto PLC (NYSE:RIO) through Turquoise Hill Resources Ltd. (TSX:TRQ) — had $1.2 million of revenue, a net loss of $51.8 million or 28 cents per share and an adjusted loss of $14.9 million.