SouthGobi (01878) by Chalco (02600) to be a turnaround event for Chalco, as the coal price
remains weak and transportation bottleneck remains.
The research house note that 2011 net profit of SouthGobi excluding fair value gain from
convertible debenture was a loss of US$49m and loss from operations was US$38m.
UBS maintained its "sell" call and price target of HK$1.9 on Chalso. (KL)