March 24 Coal miner SouthGobi Resources Ltd
warned that it was unlikely to have enough
cash to meet its debt obligations and was looking for financing
to continue its operations in Mongolia.
The company, controlled by Rio Tinto Plc ,
also reported a bigger quarterly loss, mainly due to impairment
SouthGobi said it expected continued pressure on its margins
and liquidity as coal prices were likely to stay weak in China
A continued delay in securing additional financing could
result in a default of its $250 million China Investment Corp
convertible debentures, SouthGobi said.
The company's net loss widened to $138.7 million, or 75
cents per share, in the fourth quarter ended Dec. 31 from $56.6
million, or 31 cents per share, a year earlier.
SouthGobi took impairment losses of $106.8 million in the
The company reported revenue of $32.5 million.
SouthGobi posted revenue of $1.2 million in the year-earlier
quarter, hurt by suspension of production at its flagship Ovoot
Tolgoi mine in Mongolia.
The company's shares closed 4 percent lower at 73 Canadian
cents on the Toronto Stock Exchange on Friday.
(Reporting by Ashutosh Pandey in Bangalore; Editing by Kirti