---
title: "SouthGobi Swings to Operating Profit on Higher Coal Volumes Despite Lower Prices"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286404232.md"
description: "SouthGobi Resources reported a shift to operating profit in Q1 2026, achieving $4.6 million profit from operations, up from a $15.7 million loss a year prior. This improvement was driven by a rise in coal export volumes to China, which increased to 3.1 million tonnes despite a decrease in average selling price from $59.5 to $54.4 per tonne. The company enhanced its mining operations and coal processing methods to improve product quality, addressing market uncertainties in the Chinese coal sector."
datetime: "2026-05-14T10:41:29.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286404232.md)
  - [en](https://longbridge.com/en/news/286404232.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286404232.md)
---

# SouthGobi Swings to Operating Profit on Higher Coal Volumes Despite Lower Prices

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SouthGobi Resources ( (TSE:SGQ) ) just unveiled an announcement.

SouthGobi Resources reported unaudited results for the first quarter of 2026, highlighting an expansion of its mining operations and broader use of screening, wet washing and dry processing to improve coal quality. These operational initiatives supported a significant rise in export volumes to China and an enlarged mix of coal products, even as the company reduced pricing to address uncertainty and cautious sentiment in the Chinese coal market.

Sales volumes climbed to 3.1 million tonnes from 2.1 million tonnes a year earlier, while the average realised selling price fell to $54.4 per tonne from $59.5 per tonne. Supported by higher volumes and tighter cost control in coal production, the company swung to a $4.6 million profit from operations in the quarter, compared with a $15.7 million operating loss in the same period of 2025, signalling a marked improvement in operating performance.

**More about SouthGobi Resources**

SouthGobi Resources Ltd. is a coal producer incorporated in British Columbia and listed in Hong Kong and on the TSX Venture Exchange. The company focuses on mining and processing coal in Mongolia, supplying the Chinese market with a growing portfolio of products, including mixed, wet washed and dry processed coal, to capture demand for higher-quality exports.

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