November 9, 2011 / 2:03 PM / 7 years ago

UPDATE 1-SouthGobi fetches higher coal prices, profit doubles

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Nov 9 (Reuters) - Canadian coal miner SouthGobi Resources Ltd’s quarterly profit doubled as it sold more coal at higher prices.

The company reported third-quarter net income of $55 million, or 31 cents per share, compared with $27.5 million, or 15 cents per share, last year.

The company, which owns the Ovoot Tolgoi mine and two other development projects in Mongolia, said revenue rose ten-fold to $60.5 million.

SouthGobi Resources sold 1.37 million tonnes of coal at an average realized selling price of about $54 per tonne in the quarter, up from 0.19 million at about $37 per tonne, last year.

The company sells metallurgical and thermal coal to China — one of the largest consumers of coal in the world.

Shares of the company closed at C$8.53 on Tuesday on the Toronto Stock Exchange. (Reporting by Ankur Banerjee in Bangalore; Editing by Saumyadeb Chakrabarty)

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