SouthGobi Resources recorded a $14.1 million profit from operations for the second quarter of 2026, reversing a $14.3 million operating loss from the same period in 2025.

The financial turnaround was driven by higher sales volumes and an increased average realised selling price at the Ovoot Tolgoi coal mine in Mongolia. SouthGobi sold 3.5 million tonnes of coal during the quarter at an average realised price of $60.6 per tonne, compared to 3.0 million tonnes at $52.6 per tonne in the second quarter of 2025. Revenue rose to $211.7 million from $155.3 million.

Despite the operating profit, the company’s financial statements reflect ongoing balance-sheet pressures. SouthGobi reported a working capital deficiency of $375.0 million as of June 30, 2026, widening from $337.0 million at the end of December 2025. Total asset deficiencies reached $243.3 million.

To support future processing capabilities, SouthGobi's wholly-owned subsidiary, Southgobi Sands LLC, entered into a $7.8 million Build-Transfer agreement with Tangshan Shenzhou Manufacturing Group on April 22, 2026. Under the agreement, Tangshan will construct a new dry coal separation system as a standalone plant at Ovoot Tolgoi, with total consideration scheduled to be fully paid by April 2031.

SouthGobi holds an indirect 40% interest in RDCC LLC, which holds an exclusive 30-year right to own and operate the paved highway connecting the Ovoot Tolgoi Mine to the Shivee Khuren Border Crossing. The haul road generated $5.4 million in toll fee revenue for the second quarter of 2026.

The company also announced plans to hold a special meeting of shareholders at a future date to seek approval for the March 2026 deferral agreement governing outstanding debt obligations.

Read the full announcement: SouthGobi Announces Second Quarter 2026 Unaudited Financial and Operating Results