In This Article:
VANCOUVER, BC / ACCESS Newswire / March 27, 2025 / SouthGobi Resources Ltd. (TSX-V:SGQ)(HK:1878) ("SouthGobi" or the "Company") wishes to inform its shareholders and potential investors that, based on the preliminary assessment of the Company and its subsidiaries' (the "Group") unaudited management accounts for the year ended December 31, 2024 ("FY2024") and the information currently available to the Company, it is expected that the Company would record (i) a revenue within the range of US$444.0 million to US$543.0 million for FY2024, as compared to the revenue of approximately US$331.5 million for the corresponding period in 2023; and (ii) a net profit attributable to equity holders of the Company between approximately US$83.6 million and US$102.2 million for FY2024, as compared to a net profit attributable to equity holders of the Company of approximately US$0.9 million for the corresponding period in 2023. The expected growth in revenue and the increase in net profit attributable to equity holders of the Company were mainly attributable to (i) increase in sales volume in FY2024 as compared to fiscal year 2023; (ii) the expansion of the categories of coal products in its portfolio which expanded the Group's revenue streams; and (iii) a reversal of additional tax and tax penalty payable against the Company's wholly-owned subsidiary in the amount of US$48.5 million following the revised re-assessment result in relation to the Mongolia tax audit ("Re-assessment Result"), as disclosed in the announcement of the Company dated February 13, 2025.
The Company's wholly owned subsidiary received notice of a Court proceeding brought by certain officers of the Mongolian Tax Authority, as plaintiff, against the Tax Dispute Resolution Council, as defendant, regarding the Re-assessment Result. For further information, please refer to the Company's announcement dated March 26, 2025. As at the date of this announcement (i) the Re-assessment Result remains legally valid, and (ii) the Company is still in the process of preparing and finalizing its financial results for FY2024. The information contained in this announcement is based on the preliminary assessment of the information currently available to the Company and the unaudited management accounts of the Group, which have not been reviewed or audited by the Company's auditors and may be subject to adjustments. Details of the Company's financial information and performance will be disclosed in the results announcement for FY2024, which is to be published on March 28, 2025 (Friday).