SouthGobi Announces Fourth Quarter and Full Year 2025 Financial and Operating Results

The most recent news (March 27, 2026) details a catastrophic reversal in SouthGobi’s financial health for FY2025. After a profitable 2024 ($153.9M profit), the company recorded a $133.2M loss from operations. While sales volumes increased significantly to 11.2 million tonnes (up from 7.0M), the average realized selling price collapsed from $70.4/t to $53.5/t. Crucially, the company took massive non-cash hits: a $77.3M impairment on coal stockpiles and a $42.0M impairment on property, plant, and equipment. Furthermore, a new tax penalty of $45.5M was recorded, and the company remains in a state of "working capital deficiency."

The impact is Material - Negative. The transition from a $92.5M net profit in 2024 to an expected net loss of up to $185.6M in 2025 represents a total breakdown of the margin profile. - Margin Compression: The unit cost of sales ($53.5/t) now exactly matches the average realized selling price ($53.5/t), meaning the company is essentially mining at zero gross margin before administrative and finance costs. - Regulatory Hostility: The January 2026 news regarding the "Law on Mineral Resources of Mongolia" suggests the government may restrict ownership to 34% or appoint representatives to manage the company, creating an existential threat to current shareholders. - Liquidity Crisis: Despite a new $33.1M loan from Khan Bank, the company has a net current liability of $282.5M (as of Sept 2025), which has likely worsened.

SouthGobi Resources operates the Ovoot Tolgoi open-pit coal mine in southern Mongolia, located 40km from the Chinese border. It also holds the Soumber and Zag Suuj deposits. The company focuses on selling coking and thermal coal to customers in China, leveraging its proximity to the border and its 40% interest in a paved toll road.