SouthGobi Resources

SouthGobi Resources Ltd. is a coal mining and exploration company focused on developing metallurgical and thermal coal assets in southern Mongolia. The company's flagship Ovoot Tolgoi coal mine has been in production since 2008 and SouthGobi sells a portion of its coal in China given the project's proximity to the Mongolia-China border.

In the first half of 2023, SouthGobi Resources sold 1.48 million tonnes of coal generating $145 million in revenue. The company's Ovoot Tolgoi mine is its producing asset with approximately 90 million tonnes in proven and probable coal reserves and has generated the majority of SouthGobi's revenue in the past few years. The company also has earlier-stage metallurgical and thermal coal deposits at Soumber and Zag Suuj which are located within 20 kilometers from Ovoot Tolgoi.

SouthGobi Resources Ltd. has a market capitalization of approximately $25 million and aims to ramp up production at Ovoot Tolgoi to capitalize on forecast strength in Chinese coal prices.