Update on Delay in Publication of 2019 Audited Annual Results and Despatch of 2019 Annual Report
June 30 2020 - 9:01AM
SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878)
(“
SouthGobi” or the “
Company”)
announces that reference is made to the announcements of the
Company dated May 17, 2020 and June 11, 2020 (collectively, the
“
Announcements”) in relation to, among other
things, the delay in publication of the annual results of the
Company for the year ended 31 December 2019 (the “
2019
Audited Annual Results”) and despatch of the 2019 Annual
Report. Unless otherwise stated herein, the capitalized terms used
herein shall have the same meanings as that ascribed to them in the
Announcements.
As announced on May 17, 2020, the Company
applied to the Hong Kong Stock Exchange for a further extension of
time for the publication of the 2019 Annual Report as provided for
in the Further Guidance on Joint Statement in relation to Results
Announcements in light of the COVID-19 Pandemic issued by the
Securities and Future Commission in Hong Kong and the Hong Kong
Stock Exchange on March 16, 2020. On June 30, 2020, the Hong Kong
Stock Exchange granted a waiver to the Company to waive the
requirement under 13.46(2)(a) of the Hong Kong Listing Rules on the
basis that the Company will despatch the 2019 Annual Report on or
before 24 July 2020.
Relevant Canadian securities laws do not permit
a reporting issuer to file audited financial statements which
contain an auditor’s report that expresses a modified opinion or
disclaimer of opinion, thus the Company has been working closely
with the Auditors in order to ensure they are receiving sufficient
evidence to support the going concern assumptions for the Company’s
2019 Financial Statements. However, due to ongoing travel
restrictions to Mongolia imposed amid of Covid-19 pandemic, the
Company requires additional time to prepare and provide information
to the Auditors to support the going concern assumptions for the
2019 Financial Statements.
The Company has been communicating with the
Auditors over the past few months regarding the going concern
assumptions. Following the increase of the Company’s coal
export volume as a result of the gradual loosening of the limits on
coal export volume at the border, together with the settlement with
First Concept Industrial Group Limited in June 2020, the Company
has commenced working with the key creditors on settlement plans as
alternative evidence in order to support the going concern
assumptions. Furthermore, the Company will provide additional audit
evidence to the Auditors and conduct audit update meetings with the
Auditors in the next three weeks and target to publish 2019 Audited
Annual Results and the 2019 Annual Report on or by July 24, 2020,
assuming the Auditors consider the new evidences are sufficient to
support the going concern assumptions and an unmodified audit
opinion can be issued. However, there is no guarantee the key
creditors will agree to the settlement plans with the Company nor
that the Auditors are able to rely on the new evidence provided to
agree on the going concern assumptions of the Company.
The Company will make further announcement(s) to
inform the shareholders of the Company of the date of the
publication of the 2019 Audited Annual Results and the date of
despatch of the 2019 Annual Report, as and when appropriate.
SHAREHOLDERS AND POTENTIAL INVESTORS OF
THE COMPANY SHOULD EXERCISE CAUTION WHEN THEY DEAL OR CONTEMPLATE
DEALING IN THE COMPANY’S SHARES OR OTHER SECURITIES OF THE
COMPANY.
About SouthGobiSouthGobi,
listed on the Toronto and Hong Kong stock exchanges, owns and
operates its flagship Ovoot Tolgoi coal mine in Mongolia.
SouthGobi produces and sells coal to customers in China.
Contact:
Investor Relations
Office: |
+852 2156 1438 (Hong Kong) |
|
+1 604 762 6783 (Canada) |
Email: |
info@southgobi.com |
Website: www.southgobi.com
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