LionGold

LionGold: LionGold registered a net loss of $14.4m (2QFY14 net loss at $44.9m) for 2QFY15 on revenue of $18.5m (-22.9%). The lower revenue was mainly due to a record gold grade achieved in 2Q14 of 12.8g/t as compared to 6.8g/t in 2Q15, resulting in a decrease in gold sales. Meanwhile, bottom-line was further weighed by other expenses of $11.3m, arising from the reduction of shareholding interest in MNV, impairment in available-for-sale financial assets, loss on disposal of subsidiary and loss in foreign exchange translation. Going forward, LionGold is guiding for challenging times ahead, amidst weak gold prices, rising cost of production, and a challenging fundraising environment, adding that should gold prices and operating costs reach a sustaining level where gold mining becomes unprofitable, the group may decide to diversify into other minerals or businesses. In regards to on-going investigations by the Commercial Affairs Department (CAD) on the group for trading irregularities, following the “penny stock crash” last year, LionGold disclosed that the CAD has not given any further details of its investigations. LionGold currently trades at 0.4x P/B.