Southern Alliance Mining is guiding for a higher net loss for the full year ended July 31, compared to the previous financial year.
This net loss is mainly due to lower average realised selling price as iron ore prices continue to soften and several non-cash impairment losses including in respect of the group’s mining assets arising from the slowdown in demand for iron ore from the steel industry.
Southern Alliance Mining also saw a non-cash impairment loss on the group’s investments in joint ventures, following the non-renewal of exploration licenses for projects in Sabah Malaysia, and a non-cash impairment loss on its investment in a JV with an iron ore mining site in Pahang.
Shares in Southern Alliance Mining closed flat at 51 cents on Sept 22.
