Source: Reuters                       Date: 18 May, 2011

SouthGobi Resources Ltd. has posted a narrower quarterly loss, helped by an increase in selling price for coal. The company, which owns the Ovoot Tolgoi Mine and two development projects in Mongolia, sees sales volumes of 0.6-1.3 million tons in the current quarter. It expects selling prices to remain the same sequentially.

SouthGobi Resources sells metallurgical and thermal coal to customers in China, and shipped 0.45 million tons at an average realized price of USD50 per ton in the quarter, up from 0.43 million tons at USD36 per ton last year.

For the January-March quarter, the company posted a net loss of USD46.6 million, against last year's USD168.3 million. Revenue jumped 44.8 percent to USD20.2 million.