SouthGobi Resources Ltd. (TSX:SGQ) reported its completion of the third quarter and continues to see robust market activity in the coal sector.
As quoted in the press release:
On August 10, 2011, SouthGobi provided statements with respect to management’s view of the outlook along with our second quarter 2011 financial and operating results. In particular, the Company guided:
- Third quarter sales volume: in the range of 1.2 million tonnes to 1.6 million tonnes.
- Third quarter average selling price: in the range of $50 per tonne to $55 per tonne.
- Direct cash costs: to return to recent trend levels over the balance of the year.
Now that the third quarter is complete, SouthGobi reiterates its guidance with the expectation that each of sales volume and average selling prices will be at or above the mid-point of the ranges previously provided (and shown above). Furthermore the Company also re-iterates guidance that direct cash costs are returning to recent trend levels through the second half of 2011.
With respect to the coking coal market, SouthGobi is not currently observing weakness among its customers and the regions of China in which its coal is generally consumed.