SouthGobi Resources Issues Profit Warning for FY2025

SouthGobi Resources Ltd. (TSX-V:SGQ)(HK:1878) announced a profit warning, expecting a significant net loss for the fiscal year ended December 31, 2025. Preliminary assessments indicate a net loss between US$151.9 million and US$185.6 million, contrasting with a net profit of US$92.5 million in 2024. This downturn is primarily due to a decline in average selling prices and a shift in product mix, resulting in higher production costs. Additionally, the company faces impairment losses of approximately US$77.3 million on coal stockpiles and US$42.0 million on cash generating units.

The financial results for FY2025 are still being finalized and may be subject to adjustments, with full details expected in the results announcement on March 27, 2026. Shareholders and investors are urged to exercise caution when dealing with SouthGobi shares.