Mongolia Energy Corporation may record financial year loss
The Board of Mongolia Energy Corporation Limited has informed the company’s shareholders and potential investors that, based on the information currently available, it is expected that the Group may record a significant gross loss for the financial year ending March 31, 2013, as compared with the audited results for 2012.
“This profit warning announcement is only based on the preliminary review, on the currently available information and the management accounts of the company, which have not been confirmed nor audited by the company’s independent auditor. Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the company,” the board said.
“Based on the preliminary review of the management accounts, the gross loss will be attributable, among others, to the temporary halt of commercial coking coal production since last September due to the retreat of Leighton as a mine contractor of our Khushuut Coal Mine and the technical issues in operation faced by the Group,” it added.
The company noted that the change of mining contractor may require changes in the mining plan for the Khushuut Coal Mine, which may affect the valuation of the group’s mining assets.It also noted that its mining operations had been curtailed in view of the sluggish coal market conditions and the strategic deposit issues.
“Nevertheless, our operation team on site is currently performing the overburden removal and other preparation works to prepare for our resumption of commercial coal production at any time. In the meantime we are finalizing the coal extraction contractor selection process and hope to conclude and sign up a coal extraction contractor as soon as possible,” the company said.
Mongolia Energy Corporation further noted that it is reviewing the development potential of its non-Khushuut mining and exploration licenses, so as to reduce the mandatory exploration and routine maintenance costs of these licenses.
Short URL: http://ubpost.mongolnews.mn/?p=3503
“This profit warning announcement is only based on the preliminary review, on the currently available information and the management accounts of the company, which have not been confirmed nor audited by the company’s independent auditor. Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the company,” the board said.
“Based on the preliminary review of the management accounts, the gross loss will be attributable, among others, to the temporary halt of commercial coking coal production since last September due to the retreat of Leighton as a mine contractor of our Khushuut Coal Mine and the technical issues in operation faced by the Group,” it added.
The company noted that the change of mining contractor may require changes in the mining plan for the Khushuut Coal Mine, which may affect the valuation of the group’s mining assets.It also noted that its mining operations had been curtailed in view of the sluggish coal market conditions and the strategic deposit issues.
“Nevertheless, our operation team on site is currently performing the overburden removal and other preparation works to prepare for our resumption of commercial coal production at any time. In the meantime we are finalizing the coal extraction contractor selection process and hope to conclude and sign up a coal extraction contractor as soon as possible,” the company said.
Mongolia Energy Corporation further noted that it is reviewing the development potential of its non-Khushuut mining and exploration licenses, so as to reduce the mandatory exploration and routine maintenance costs of these licenses.
Short URL: http://ubpost.mongolnews.mn/?p=3503
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