SouthGobi Resources Announces Second Quarter 2011 Financial and Operating Results

SouthGobi Resources Ltd. (TSX:SGQ) reports its financial results for the six months ended June 30, 2011.

The press release is quoted as saying:

SouthGobi substantially proliferated its customer base during the first half of 2011 and raised prices for individual products.

To date the Company has signed seven major customers to purchase coal in the third quarter of 2011. Pricing for the raw semi-soft coking coal product and raw higher-ash coal product should be similar to those prices of the second quarter of 2011 at approximately $65 per tonne and $40 per tonne respectively because SouthGobi has pursued a strategy to substantially expand volume for the third quarter. A new product will also be introduced being a raw medium-ash coal. Initial contracts have been signed reflecting pricing of approximately $47 per tonne for that product. With the three products, SouthGobi anticipates the overall average realized sales price in the third quarter of 2011 should be similar to that achieved in the second quarter and in the range of $50 per tonne to $55 per tonne.

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