SouthGobi Says Cash May Not Last the Year as Holder Defers Debt
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Hong Kong-listed SouthGobi Resources Ltd. said it may not have enough cash to see out the year as the Mongolian coal miner’s majority shareholder agreed to defer its debt repayments and it seeks new financing deals to help combat weak commodity prices.
“There can be no assurance that the company will have sufficient funding for the balance of 2014 to be able to continue as a going concern,” the company said in a statement today to the Hong Kong stock exchange. It’s seeking additional sources of financing, including coal prepayment, as a potential solution to continue operations.