south gobi or ovorhangay

With South Gobi Res latest report on turn-over and profitability, we may have light at the end of the tunnel.

1/4 ending March '12:
$40 mil revenue;
$22.7 mil profit!
Sale rate avg $57.70 p/t;
Sale incl Semi-soft & Raw Medium Ash coal;
Cash & Equivalent @ $125.1 mil.

1/4 ending Dec 2011 was also healthy, incl profit of $16.6 mil on Revenue of $51.1 mil.

Team are planning to drill prospective field, with coal at surface, in this region in next drilling project according to last ann.

With Teeg showing much promise, could be 'torn between the two' ??

That said, I'm not suggesting that we have a bright future in the absolute immediate future.
However in amongst the 'global sell-off', I have some long term hope for the future of coal, and particularly Mono over Aus at present.
The profitability of the current operation in our zone is encouraging, imo, and others are free to think differently!

With company's cash position, coal quality to be confirmed, demand on our door-step, I feel a longer term positive position may well be on the cards.


Meantime, hard to swallow what I have seen on a few occasions in the past - including the massive sell-off in Oct '97, to be re-occurring here in Aus in 2012.
Aus market is only some 7% higher than our low of last 2 years.
We harp on about US being a problem, but they are still some 30% above their 2 year low. (Germany still some 25% up from their low).
Not sure if our Gvt realise the under-lying problem here in Aus, particularly throwing hard earned cash around, increasing taxes / cost of living / jobs.

Well just have to get through this challenging time, and hope for a better future - particularly for Draig.

Cheers :)