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南戈壁(01878) - 2023 - 中期财报
01878SOUTHGOBI(01878)2023-08-23 09:47

Financial Performance - The company recorded an operating loss of 40.5millioninQ22023,comparedtoanoperatingprofitof40.5 million in Q2 2023, compared to an operating profit of 2.7 million in Q2 2022[27]. - Revenue for Q2 2023 was 83.2million,asignificantincreasefrom83.2 million, a significant increase from 5.8 million in Q2 2022, due to the normalization of coal exports and improved market conditions[74]. - The company reported a net loss of 60,632thousandforthequarter,comparedtoanetprofitof60,632 thousand for the quarter, compared to a net profit of 7,855 thousand in the previous quarter, reflecting a substantial decline in profitability[132]. - The company reported a loss attributable to equity holders of 52.8millionforthefirstsixmonthsof2023,comparedtoalossof52.8 million for the first six months of 2023, compared to a loss of 17.8 million in 2022[170]. - The company’s net loss attributable to equity holders was 60,632,000forthesecondquarterof2023,comparedtoalossof60,632,000 for the second quarter of 2023, compared to a loss of 7,053,000 in the same quarter of 2022[84]. Tax Penalties - The company has received a tax penalty notice of 75millionfromtheMongoliantaxauthority,whichhasimpacteditsfinancialperformance[27].−Thecompanyrecordedataxprovisionof75 million from the Mongolian tax authority, which has impacted its financial performance[27]. - The company recorded a tax provision of 75 million related to penalties from the Mongolian tax authority as of June 30, 2023[59]. - The company is actively exploring solutions regarding the tax penalty issue, including negotiations with the Mongolian tax authority[59]. - The company is subject to a tax penalty of approximately 75millionfromtheMongoliantaxauthorityfollowinganauditoffinancialdatafrom2017to2020[168].SalesandProduction−Theaveragesellingpriceofthecompany′sproductshasincreased,contributingtohighersalesvolumesinthefirsthalfof2023[27].−Thecompanyreportedcoalsalesof0.88milliontonsforthethreemonthsendedJune30,2023,comparedto0.09milliontonsinthesameperiodof2022,representingasignificantincrease[40].−Theaveragerealizedpricepertonofcoalsoldincreasedto75 million from the Mongolian tax authority following an audit of financial data from 2017 to 2020[168]. Sales and Production - The average selling price of the company's products has increased, contributing to higher sales volumes in the first half of 2023[27]. - The company reported coal sales of 0.88 million tons for the three months ended June 30, 2023, compared to 0.09 million tons in the same period of 2022, representing a significant increase[40]. - The average realized price per ton of coal sold increased to 95.34 in Q2 2023 from 66.55inQ22022,reflectingimprovedmarketconditions[40].−Thecompany’stotalcoalsalesforthefirstsixmonthsof2023reached1.5milliontons,upfrom0.1milliontonsinthesameperiodof2022[42].−Theaveragesellingpricepertonforthefirsthalfof2023was66.55 in Q2 2022, reflecting improved market conditions[40]. - The company’s total coal sales for the first six months of 2023 reached 1.5 million tons, up from 0.1 million tons in the same period of 2022[42]. - The average selling price per ton for the first half of 2023 was 98.9, an increase from 66.6inthefirsthalfof2022,attributedtomarketimprovementsandexpandedsalesnetworks[42].OperationalDevelopments−Thecompanyresumedcoalminingoperationsattheendof2022,withcoalproductiongraduallyincreasing,andwashingoperationsresumedinApril2023[13].−Thecompanyisfocusingonincreasingthevalueofitsproductsthroughcoalwashingandprocessing[4].−ThecompanyisexploringmarkettrendsintheChinesecoalindustryforfuturegrowthopportunities[4].−Thecompanyaimstodevelopmarketsforitspremiumandstandardsemi−softcokingcoalproducts,particularlytargetinglong−termsupplyagreementswithend−usersinChina[122].−Thecompanyhascompletedalldocumentproductionanddepositionsrelatedtoaclassactionlawsuit,withahearingscheduledforOctober23,2023[199].FinancialObligationsandLiquidity−Thecompanyexpectstohavesufficientliquidityandcapitalresourcestomeetitsongoingobligations,includingtheabilitytopaythe66.6 in the first half of 2022, attributed to market improvements and expanded sales networks[42]. Operational Developments - The company resumed coal mining operations at the end of 2022, with coal production gradually increasing, and washing operations resumed in April 2023[13]. - The company is focusing on increasing the value of its products through coal washing and processing[4]. - The company is exploring market trends in the Chinese coal industry for future growth opportunities[4]. - The company aims to develop markets for its premium and standard semi-soft coking coal products, particularly targeting long-term supply agreements with end-users in China[122]. - The company has completed all document production and depositions related to a class action lawsuit, with a hearing scheduled for October 23, 2023[199]. Financial Obligations and Liquidity - The company expects to have sufficient liquidity and capital resources to meet its ongoing obligations, including the ability to pay the 75 million tax penalty or appeal[3]. - The company has entered into a deferral agreement with JDZF, allowing for the postponement of approximately 79millionincashinterestpaymentsdueinMay2023[14].−Thecompanyisseekingshareholderapprovalforarepaymentplanrelatedtooutstandingobligationstotalingapproximately79 million in cash interest payments due in May 2023[14]. - The company is seeking shareholder approval for a repayment plan related to outstanding obligations totaling approximately 110.4 million[152]. - The company reported a working capital deficit that includes significant liabilities of 59.1million,whichincludes59.1 million, which includes 19.2 million in unpaid taxes[149]. - The company believes it can continue as a going concern until at least June 30, 2024, provided it generates sufficient operating cash flow[148]. Cost Management - The total cash cost per ton of sold products decreased from 56.32inQ22022to56.32 in Q2 2022 to 47.76 in Q2 2023, driven by economies of scale from increased sales[41]. - The company's unit sales cost decreased from 67.5pertoninthefirsthalfof2022to67.5 per ton in the first half of 2022 to 49.3 per ton in the first half of 2023, driven by economies of scale from increased sales[68]. - The total cash cost for the three months ended June 30, 2023, was 31.139million,withnoidlemineassetcashcostsincluded[135].−ThecashcostpertonofsoldproductsforQ22023was31.139 million, with no idle mine asset cash costs included[135]. - The cash cost per ton of sold products for Q2 2023 was 35.39, compared to $34.30 in Q2 2022, reflecting a slight increase[136]. - The company has reduced assessment and exploration expenses in Q2 2023 to conserve financial resources[77]. Management and Governance - The company appointed a new non-executive director on May 17, 2023, following the removal of the previous CEO on May 15, 2023[36][37]. - The company has implemented a planning, budgeting, and forecasting process to determine the funding needed for ongoing operations and expansion plans[165]. - The company is closely monitoring factors affecting its liquidity, including coal market prices and economic growth in China[175]. - The company has agreed to pay deferred payment fees at a rate of 1.5% for unpaid balances related to the March 2023 deferred payment[186]. - The company must obtain approval from the Toronto Stock Exchange and disinterested shareholders for the March 2023 deferred payment agreement to take effect[184].