SouthGobi Resources Ltd. (TSX:SGQ) provided updates on its operations in Mongolia: regulatory issues and deteriorating market conditions lead to the curtailment of mining operations, and suspension of uncommitted capital expenditure and exploration expenditure.
As quoted in the press release:
With the difficult conditions of the second quarter and the uncertainty regarding how the third quarter may evolve, the Company cautions that at this time sales volumes, pricing and production volume outcomes for the full year of 2012 cannot be estimated.
In addition to the curtailment of mining operations, SouthGobi has suspended uncommitted capital expenditure and exploration expenditure. These initiatives have been taken to preserve the Company’s financial resources.