CST Mining Group Limited provided group earnings guidance for the financial year ending 31 March 2016. Based on a preliminary review by the company's management on the management accounts of the group, the board of directors of the company informed the shareholders of the company and potential investors of the company that the group is expected to record a loss for its financial year ending 31 March 2016 as compared with the profit recorded by the group for its financial year ended 31 March 2015. Such expected loss of the group was primarily attributable to the combined effect of the following factors: the significant decrease in revenue derived from the copper mining business of the group due to the persistent low copper market price and the reduction in volume of copper produced from the Lady Annie mine during the financial year ending 31 March 2016.

The revenue derived from copper mining business for the eleven-month period ended 29 February 2016 is approximately $42 million as compared to $109 million for the year ended 31 March 2015; impairment loss in relation to the group's copper mining business which includes loss on inventories written down to net realisable value during the financial year ending 31 March 2016; and the expected decrease in gain on fair value changes of financial assets at fair value through profit or loss for the year ending 31 March 2016 as compared with that for the year ended 31 March 2015 as derived from the Group's investment in financial instrument.