Poor due diligence, global market demand issues, lack of modern rail transport —
A once promising Mongolian resource company falls on tough times…
SouthGobi was once worth more than C$3-billion, and its TSX-listed shares peaked at C$21.99 in 2008. The stock fell as low as C$0.34 in February 2015 It was trading at C$0.50 a share on Friday. (miningweekly.com) news report August 15 2015
Coal producer SouthGobi Resources continues according to news reports to seek an amicable resolution of its tax dispute with the Mongolian government.
Faint to reach a settlement might — with a court sanctioned financial penalty — trigger events of default with a Chinese funding partner and eventual bankruptcy say news reports.
SouthGobi, a subsidiary of Rio Tinto-owned Turquoise Hill Resources, had in a January been found financially liable as a ‘civil defendant’ for a penalty of about $18-million, following a criminal tax investigation case.
To review the full report, go to: http://m.miningweekly.com/article/southgobi-faces-bankruptcy-if-unsuccessful-to-solve-mongolian-tax-dispute-2015-08-14