Origo Partners buys stakes in Mongolian explorers
June 23 (Reuters) - China-focused investment company Origo Partners (OPP.L) said it agreed to buy stakes in two Mongolia-based exploration companies, continuing its efforts to focus on the Chinese natural resources sector.
The company said it would invest up to $5 million for a 23 percent interest in Bumbat Consolidated Ltd, an exploration company focused on coal, iron-ore, copper and gold.
Origo will also acquire a 10 percent stake in copper and gold explorer Huremtiin Hyar LLC for $300,000, with an option to invest $3.5 million more to raise its stake to 70 percent.
Both Mongolian companies have exploration licences in areas where significant mineral deposits have been found, Origo said in a statement.
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For the year ended Dec. 31, pretax profit was $39.5 million, compared with a pretax loss of $8.2 million in the year-ago period. Revenue fell 23 percent to $3.7 million.
Khan Announces Organizational Changes and Update on Legal Actions
TORONTO, ONTARIO--(Marketwire - June 22, 2010) - Khan Resources Inc. (TSX:KRI) announced today key organizational changes, as well as an important update about legal actions it is pursuing in the fight to protect its interests in Mongolia and to preserve and enhance value for its shareholders.
Organizational Changes
Effective June 25, 2010, Mr. Martin Quick will retire as President and Chief Executive Officer to pursue personal interests and spend more time with his family, but will remain as a director of the Company. He will be replaced on an interim basis by Mr. Grant Edey who is currently a director and Chair of the Special and Audit and Finance Committees of the Company. Also, Mssrs. Peter J. Hooper and Steven W. Harapiak have resigned from the Board of Directors and Mssrs. Marc Henderson and Raffi Babikian have been appointed as directors to fill the vacancies created by the resignations.
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Legal Actions and Ongoing Review
The Company also announced that it has broadened the legal actions it will initiate to recover damages and other remedies in respect of the illegal expropriation of its licenses in Mongolia and other unlawful, unfair and discriminatory actions taken by the Government of Mongolia and, in particular, the Nuclear Energy Agency of Mongolia (the "NEA"). Khan has retained the Washington D.C. law firm of Crowell & Moring LLP to commence international arbitration proceedings against the Government of Mongolia, and the necessary legal work to initiate proceedings on Khan's behalf has begun. Khan believes that it has a strong case and intends to seek a substantial damages award that reflects the significant value that Khan has created in the Dornod Uranium Project, as demonstrated by the Definitive Feasibility Study completed in March 2009.
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Statistical office releases social, economic, data
June 23 (news.mn) The National Statistical Office has published figures for various sectors. All figures are for the period January-May 2010, unless otherwise mentioned. All comparisons are with the period January-May, 2009, again unless otherwise mentioned.
Consumer price index
The national consumer price index in May rose 3.2 percent against April, 13.1 percent against the end of last year, and 11.6 per cent against May 2009.
The rise was mainly because of a 6.4 percent increase in the price of food and non-alcoholic beverages.
Unemployment
The number of unemployed people was 135,100 in the first quarter of 2010. This was 12.2 percent of the working age population. There were 76,300 men in the total.
The number of registered unemployed was 38,701 at the end of May, showing a 0.2 percent drop.
Budget, tax collection
The general government budget (GGB) showed a deficit of MNT 169.8 billion, MNT 22.0 billion less than in the same period last year.
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Foreign trade
Total turnover of trade with 120 countries reached USD2,039.8 million, registering an increase of 58.5 percent. Exports rose 66.9 percent and imports 51.3 percent. The trade balance showed a deficit of USD60.2 million, USD41.0 million or 40.6 per cent less than in the corresponding period in 2009.
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Stock trading
Altogether 6.4 million shares were traded for MNT 1.5 billion in 21 trading days in May. The number of shares traded increased 10.0 percent against April, but was 6.4 percent less than in May, 2009.
Household accounts
Average household income in the first quarter of 2010 stood at MNT393,000, rising by MNT48,300 or 14.0 percent over the previous year. Average household expenses were MNT378,000, an increase of MNT 22,400 or 6.3 percent.
Chinese decision on yuan likely to raise prices here
June 23 (news.mn) China’s decision to allow the renminbi to appreciate against the dollar, even if gradually, is a major development in the world financial markets. Stock markets in Japan, South Korea, Australia, Shanghai and Singapore have risen and investors believe that the Beijing decision will not only affect the greenback, but also other currencies such as the euro and Japanese yen to be stronger.
How will the Chinese decision affect Mongolia? Chinese currency is believed to be around 25 percent of our foreign currency reserves, which will now become less in terms of the US dollar. Prices are also likely to rise as Chinese exports will be more expensive and Mongolia will have to pay more for all products that come from China.
The announcement was made on Saturday evening when one yuan cost MNT 202.50. This rose to MNT 203.20 on Monday.
Mongolbank experts have chosen to watch the situation for some time.
Major Daily Newspaper says Nasdaq, LSE, and Frankfurt submits bid for MSE
June 23 (summarized from “Unuudur” newspaper dated today, June 23) On a small front page article Unuudur reports that Nasdaq, London Stock Exchange and German Stock Exchange (it doesn’t say which but guess is on Frankfurt) has submitted bids to State Property Committee before the June 11 deadline for right to manage Mongolian Stock Exchange.
Mogi: If I recall correctly the winner will be selected in the 2nd half of 2010.
Petro Matad Spuds Davsan Tolgoi-1 On XX Block In Eastern Mongolia
June 23 (Proactive Investors Australia) Petro Matad (LON:MATD) has spudded the Davsan Tolgoi-1 (DT-1) exploration well, the first to be drilled in the 2010 campaign on the company’s Production Sharing Contract (PSC) on Block XX in Eastern Mongolia. DT-1 is being drilled vertically to an estimated target depth of approximately 1,440 metres, and drilling is expected to take 30 days to complete.
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Petro Matad is the parent company of a group focused on oil exploration, as well as future development and production in Mongolia. The group holds the sole operatorship of three PSCs with the government of Mongolia. The principal asset is the PSC for Block XX, a petroleum block of 14,250km² in the far eastern part of the country. The two other blocks, IV and V are located in central Mongolia and jointly cover 73,498km².
Economic Standing Committee Approves Final Reading on Railway Policy
June 23 (summarized from Mongolian) Great Hural Press Office Website reports that the committee has approved the final reading on the draft railway policy. Summary:
1. 1st stage construction will be around 1100 kms, 2nd stage will be around 900 kms
2. Initial rail lines to be constructed will be in wide gauges
3. As for the width of cargo rail lines from mines to border, committee members agreed to have the government introduce those issues to parliament.
4. Draft is to be sent to full parliament session for approval. Date on the vote on disclosed.
Australia
Stocks dragged down by big banks, miners
June 23 (BusinessDay.com.au) Update Australian stocks slumped for a second day as investors sold off big banks and mining stocks on dimming confidence about the global economy. Gold and telecommunications stocks were among the few gains.
The benchmark S&P/ASX200 index lost 72.2 points, or 1.6 per cent, to 4486.1 points, while the broader All Ordinaries index was off 71.9 points, or 1.6 per cent, at 4509.4.
Among the major sub-indexes, energy stocks were down 2.1 per cent, materials were 1.5 per cent lower and financials had lost 2.1 per cent. Gold stocks advanced 0.3 per cent, while telco shares added 1 per cent.
need2know:
The Australian dollar fell to 86.8 US cents
Asian stocks extended their drop
Europe's Stoxx 50 loses 1% in early trading
Dow futures were up 19 points to 10,252
Oil futures were flat at $US77.50 a barrel
Gold futures hovered at about $US1240 an ounce
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Among the big miners, Rio Tinto fell $1.57, or 2.18 per cent, to $70.54 and BHP Billiton lost 52 cents, or 1.31 per cent, to $39.14.
The big four banks closed lower, with Westpac suffering the biggest percentage loss, down 3.3 per cent or 76 cents, to $22.56, Commonwealth down $1.33 to $51.21, National Australia Bank 41 cents lower at $24.67 and ANZ down 34 cents at $22.88.
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Gold miners gain
Gold miner Newcrest Mining closed up 29 cents at $35.38, while Lihir rose two cents to $4.33.
At 1630 AEST, the spot price of gold in Sydney was $US1,239.20 per fine ounce, up $US2.50 from $US1,236.70 per fine ounce on Tuesday.
Sundance Resources shares have been suspended from trading while the company works out its future governance arrangements.
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On the Sydney Futures Exchange, the September futures contract was 77 points lower at 4475 points, on volume of 21,244 contracts.
Dollar loses ground as global woes weigh
June 23 (AAP) The Australian dollar closed lower, continuing its downward trajectory on global uncertainty in the absence of any domestic data.
At 1700 AEST, the Australian dollar was trading at $US0.8693/95, down more than half a cent from Wednesday's close of $US0.8771/74.
It was also buying 70.8 euro cents, 58.5 pence and 78.7 yen in recent trading.
From 0700 AEST on Wednesday, the local unit traded between $US0.8688 and $US0.8737.
ICAP economist Adam Carr said the local unit had continued to lose ground since Tuesday, but it had done ``very little'' during afternoon trade.
''People are just unsure. They know the Aussie dollar should probably be higher, but there's just this weight of pessimism which is a battle,'' he said.
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He said investors were reluctant to take risks until the next consumer price inflation figure is released and the Reserve Bank of Australia (RBA) makes its next interest rate decision in July
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China
Yuan Holds Gains on Signs PBOC Permitting Gradual Appreciation
June 23 (Bloomberg) -- China’s yuan held this week’s gains against the dollar, even as Asian currencies dropped, on speculation the central bank is allowing a stronger currency to curb inflation after ending a two-year peg.
The People’s Bank of China set its reference rate for yuan trading at 6.8102 per dollar, 0.05 percent stronger than yesterday’s close of 6.8136. …
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“China stands to gain the most from greater exchange rate flexibility and appreciation,” said Michael Hasenstab, who oversees the $2 billion Templeton Emerging Markets Bond Fund in San Mateo, California. “Such dynamics will help facilitate the greater internationalization of the yuan, assist in the rebalancing of the economy away from an over-reliance on exports, and help stem inflation.”
The yuan closed at 6.8124 per dollar in Shanghai, little changed from 6.8136 yesterday, according to the China Foreign Exchange Trade System. It has gained 0.23 percent this week. The 12-month non-deliverable forward traded at 6.6680, compared with 6.6463 yesterday, reflecting bets for 2.2 percent appreciation.
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Global
Wall Street to bounce at open with Fed statement in focus
June 23 (Reuters) - Wall Street was poised to open higher on Wednesday after the previous day's tumble and with the Federal Reserve expected to reassure investors it won't move too soon on its tightening policy.
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S&P 500 futures rose 5.3 points and above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 40 points, and Nasdaq 100 futures added 8.5 points.
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On the data front, new home sales for May will be released at 10:00 a.m. Economists expect that sales fell to an annual rate of 410,000 units from 504,000 in April.
Link to Article
Asian Stocks Fall the Most in Two Weeks on U.S. Home Sales, Yen
June 23 (Bloomberg) -- Asian stocks fell, dragging the MSCI Asia Pacific Index to its biggest drop in two weeks, after an unexpected decline in U.S. home sales raised concern about the strength of the world’s largest economy.
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The MSCI Asia Pacific Index fell 1.1 percent to 116.86 at 1:25 p.m. in Tokyo, the most since June 7. The measure has fallen 9.5 percent from its high this year on April 15 on speculation Chinese measures to curb property prices and Europe’s debt crisis will hurt global growth.
“Investors are avoiding risk because concern is emerging that the global economy will slow,” said Tomomi Yamashita, a fund manager in Tokyo at Shinkin Asset Management Co., which oversees about $6 billion. “This isn’t the right time to draw up an investment strategy.”
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Japan’s Nikkei 225 Stock Average fell 1.7 percent, the biggest decline among major indexes in the Asia-Pacific region. Australia’s S&P/ASX 200 Index lost 1.1 percent. Hong Kong’s Hang Seng Index slipped 0.5 percent while China’s Shanghai Composite Index decreased 0.9 percent.
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China announcing the end of its currency’s peg to the dollar on June 19 also boosted sentiment. The average price of shares in the MSCI Asia Pacific Index has risen to 14.6 times estimated earnings from 13.8 times on May 18, the lowest level in almost 17 months.
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“Sentiment remains very fragile,” said David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. “Confidence has been rattled in recent months by European fiscal issues and by data in the U.S. that’s been uneven. They’re factors that have left markets cautious.”
BHP, which receives about 40 percent of its revenue from petroleum and base metals such as copper, declined 1.3 percent to A$39.13 in Sydney. Rio Tinto Group, the world’s third-largest mining company, dropped 1.7 percent to A$70.89.
Mitsubishi Corp., which gets about 40 percent of sales from commodities, slid 0.9 percent to 2,003 yen in Tokyo. PetroChina Co., the country’s largest oil producer, lost 1.4 percent to HK$9.03 in Hong Kong.
Soros says Germany could cause euro collapse
June 23 (Reuters) - Germany's budget savings policy risks destroying the European project and a collapse of the euro cannot be ruled out, billionaire investor George Soros said in a newspaper interview released on Wednesday.
Chancellor AngelaMerkel unveiled plans earlier this month for 80 billion euros ($107 billion) in budget cuts over the next four years -- a package she hopes will bring Germany's structural deficit within European Union limits by 2013.
"Right now the Germans are dragging their neighbors into deflation, which threatens a long phase of stagnation. And that leads to nationalism, social unrest and xenophobia. Democracy itself could be at risk," he said.
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Gold slips below $1,240 ahead of Fed
June 23 (Reuters) - Gold slipped below $1,240 an ounce on Wednesday as stock markets turned positive ahead of an interest rates announcement from the U.S. Federal Reserve, curbing buying of the precious metal as a haven from risk.
Prices retreated from session highs at $1,246.10 an ounce as equities pared losses in Europe and headed for a higher open in the United States.
Spot gold was bid at $1,239.25 an ounce at 1304 GMT, against $1,239.00 late in New York on Tuesday. U.S. gold futures for August delivery were flat at $1,240.80.
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Misc.
Inner Mongolia to sell breeding pigs to Mongolia
June 23 (Xinhua) HOHHOT-- North China's Inner Mongolia autonomous region has secured its first ever deal to export breeding pigs to the Republic of Mongolia, with a shipment of 60 animals set for August, the exporter announced Tuesday.
The supply contract signed between Dexin Animal Breeding Co Ltd in Ordos city, and its buyer in the inland country allows for the sale of 360 breeding pigs.
Zurgaan Khoshuu, an animal husbandry company in the Republic of Mongolia, will raise the animals in the suburbs of Ulan Bator, the capital.
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"Mogi" Munkhdul Badral
CPS Mongolia
Email: mogi@cpsmongolia.mn
Mobile: +976-99996779
CPS Mongolia is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based ASX Licensed Financial Services Company. To trade ASX stocks, feel free to contact me at mogi@cpsmongolia.mn or +976-9999-6779.
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