CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
Origo Partners Acquires 25% Stake In Kincora In Mongolia For US$3 Mln
September 13 (RTTNews) - Origo Partners Plc (OPP.L:News ) announced the acquisition of a 25% stake in Kincora Ltd, owner of the Bronze Fox copper-gold prospect in Mongolia for US$3 million.
Kincora owns a 100% interest in the Bronze Fox prospect through a wholly-owned Mongolian subsidiary. Origo has also been granted an exclusive option, exercisable prior to June 30, 2011, to increase its shareholding to 75% for an additional consideration of US$12 million.
Link to article
Winsway Starts Deal
September 13, HONG KONG (Dow Jones)--China's Winsway Coking Coal Holdings Ltd. on Monday began pre-marketing a US$1 billion initial public offering in Hong Kong, while two other companies on the mainland launched roadshows for IPOs in the city with plans to raise up to US$845 million.
Winsway, a coking coal transport and processing company, is seeking to raise up to US$1 billion ahead of an Oct. 11 listing, two people familiar with the situation said Monday. The offering attracted US$120 million in pre-IPO investments, including from Winstar Capital Group and Silver Grant International Industries Ltd. (0171.HK), according to a term sheet seen by Dow Jones Newswires on Monday.
The company aims to start the road show for the offering Sept. 20, the term sheet said. Deutsche Bank AG (DB), Goldman Sachs Group Inc. (GS) and Bank of America Merrill Lynch are handling Winsway's IPO, according to the term sheet.
Winsway, which is partly owned by Chinese private-equity firm Hopu Investment Management Co., specializes in processing, washing and transporting coking coal and bringing resources from Mongolia to China. The company's clients include Canadian company SouthGobi Energy Resources Ltd., a unit of Ivanhoe Mines Ltd. It will use the proceeds from the IPO to acquire coal resources and to buy new logistics transportation infrastructure, the term sheet said.
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INDUSTRIAL OUTPUT INCREASES
September 13, Ulaanbaatar, Mongolia, /MONTSAME/ In the first eight months of 2010, the total industrial output increased by MNT 157.2 billion or 15.5 per cent to MNT 1,174.5 billion (at 2005 constant prices) against the previous year.
The increase in the industrial output was mainly due to increase in main industrial products such as coal, crude oil, iron ore, fluor spar concentrate, all types of meat, milk, yogurt, ice-cream, wheat flour, alcoholic beverage, wine, beer, soft drinks, felt, sawn wood, proton exchange fuel, cement, lime, metal sleeper, solid concrete, copper, metal foundries and steel casting.
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Link to article
TAX REVENUE AND CAPITAL EXPENDITURE IN STATISTICAL MIRROR
September 13, Ulaanbaatar, Mongolia, /MONTSAME/ Tax revenue increased by MNT 641.8 billion or 70.0 per cent against the previous year.
The increase was mainly due to increase of MNT 166.0 billion or 3.7 times in windfall tax on some products, and of MNT 112.1 billion or 95.4 per cent in corporate income tax and of MNT 129.3 billion or 62.5 per cent in value added tax. Compared to the same period of the previous year, non-tax revenue decreased by MNT 27.4 billion or 13.3 per cent, out of which revenues from oil petroleum up by MNT 21.1 billion or 5.1 times and other revenues up by MNT 16.0 billion or 22.7 times, although the revenues from dividends decreased by MNT 83.7 billion or 92.5 per cent.
Spending of MNT 277.9 billion on capital expenditure in the first eight months of 2010 was higher by MNT 62.5 billion or 29.0 per cent over the same period of 2009. The increase in capital expenditure was caused by an increase of MNT 68.9 billion or 34.1 per cent in capital expenditure of domestic sources, although the foreign financed capital expenditure decreased by MNT 6.4 billion or 49.0 per cent.
Link to article
STOCK EXCHANGE AND GGB IN STATISTICS
September 13, Ulaanbaatar, Mongolia, /MONTSAME/ There were 22 trading days and 2.1 million shares valued at MNT 787.8 million were traded in August, 2010.
In the first eight months of 2010, total revenue and grants of the General Government Budget (GGB) amounted to MNT 1772.6 billion and total expenditure and net lending amounted to MNT 1805.5 billion, representing a deficit of MNT 32.9 billion in the GGB overall balance, down by MNT 301.6 billion compared to the same period of the previous year. Current revenue of the GGB amounted to MNT 1737.4 billion and current expenditure reached MNT 1378.5 billion.
Total expenditure and net lending of the GGB increased by MNT 333.2 billion or 22.6 per cent to MNT 1805.5 billion in the first eight months of 2010 compared to same period of the previous year. This was mainly due to increase of MNT 175.6 billion or 35.4 per cent in subsidies and transfers, and MNT 49.9 billion or 21.6 per cent in purchase of other goods and services. Thus, the budget current balance was in profit of MNT 358.9 billion.
Link to article
China and Russia drive mineral-rich Mongolia to join the mining elite
Little known to the West, superpowers are investing in Central-Asia as they rush for raw materials.
September 11 (Liam Halligan for Telegraph.co.uk) China's imports surged in August, up no less than 32pc on the same month last year. When I heard this news last week, via my mobile-phone, I was standing on a hilltop in Mongolia, watching as massive hydraulic excavators worked what is said to be the world's largest surface-mine coal seam.
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China's coal reserves, in contrast, are generally low-quality and much dearer to mine. Yet the People's Republic, in the midst of the fastest industrial revolution in human history, is producing 50pc of the world's steel. That's one reason Beijing is so interested in Mongolia coal. In addition, 75pc of China's electricity derives from coal-fired power stations.
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While I don't believe that Western interests will be deliberately excluded from this emerging Russia-China link-up, unlike in previous rounds of the central Asian "Great Game", they most certainly won't be in charge. As if to make the point, Beijing and Moscow last week agreed to launch ruble-yuan trading by the end of 2010, an important step towards settling their growing bi-lateral trade in national currencies – and, pointedly, not in dollars. You can see a lot from a hilltop in Mongolia – as long as you're prepared to look.
(Mogi: I had the privilege of meeting Liam during a conference last week in Ulaanbaatar)
Aussies at the fore of Mongolian charge
TWO years ago Alex Molyneux was sitting at Citi's Hong Kong Mining and Metals M&A desk.
September 13 (The Australian) He was there trying to find a new chief executive for one of his client's subsidiaries in Mongolia -- Asia's new blockbuster mining province.
Canada's Ivanhoe Mines was looking for someone to take charge of its nascent coalminer SouthGobi Resources and move it from startup to fully fledged operator. After the group knocked back three or four suggestions, in March last year the Monash University-educated investment banker took the job himself.
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… Last week, almost 400 representatives from the world's mining and mining services companies descended on the dusty Mongolian capital, in renewed confidence that the country's long-promised mining boom is now under way.
Alongside the conference, Austrade hosted Australia's biggest business delegation to Mongolia, with representatives of 21 firms attending.
"When we first announced it we were expecting eight or 10 companies," said Austrade trade commissioner Rod Commerford, who has spent the past five months in the country. "We were amazed."
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The World Bank, in a report by economist Graeme Hancock, said slow decisions were hampering energy sector development, with new projects expected to require substantial new generating capacity (initially 600-1000MW).
"Border crossings are a major constraint to new exports of bulk commodities and rail issues continue to be a real challenge," he wrote.
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Mr Hancock said Mongolia was currently perceived by some as having an unstable legal and fiscal framework.
"Many in government recognise this issue and are working to stabilise the legal and fiscal framework -- however it's important to stabilise a good framework, not a bad one," he wrote. But if the government can get it right, the rivers of resources gold will start to gush.
Mongolia tapping coal to be new cash cow resource
September 13 (AFP) ULAN BATOR -- Investors keen to reap the benefits of Mongolia's untapped mineral riches have shifted their focus from glittering copper and gold to coal, with energy-hungry neighbor China a key customer.
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“Coal is becoming a very hot topic in Mongolia,” lawmaker Sanjasurengiin Oyun told AFP on the sidelines of the Discover Mongolia meeting.
“Coal prices are up and energy demand from China is insatiable. Now is the time to diversify and get beyond copper and gold and onto our other natural resources.”
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“The government has adopted a plan to build a railway to Russia. That is our priority,” Batkhuyag Dorjpurev, the head of the Mongolian Resources Authority, told the conference.
“After building out the rail to Russia, we will focus on rail to China.”
Some policy analysts say that move is based more on geopolitics than on sound economics, though having a second outlet for coal would keep China honest in its pricing mechanisms and give Mongolia added options.
“If you look at the commercial realities, it makes more sense to look at rail into China. But the government does not want to be completely reliant on one country,” said Hancock.
Australia
| Close: Shares of Mongolia Related ASX Listed Companies, September 13, 2010 | | ||||||||
| 0.880 | -0.020 | 0.880 | 0.885 | 0.890 | 0.900 | 0.875 | 313,780 |
| |
| 0.014 | 0.001 | 0.013 | 0.014 | 0.014 | 0.014 | 0.014 | 1,718,200 |
| |
| 0.185 | 0.000 | 0.185 | 0.190 | 0.185 | 0.185 | 0.185 | 48,450 |
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| 0.105 | 0.005 | 0.100 | 0.105 | 0.100 | 0.105 | 0.100 | 600,721 |
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| 0.110 | 0.000 | 0.110 | 0.115 | 0.110 | 0.115 | 0.110 | 604,934 |
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| 34.340 | 0.970 | 34.310 | 34.340 | 33.800 | 34.360 | 33.600 | 575,409 |
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| 75.300 | 1.050 | 75.220 | 75.300 | 74.920 | 75.490 | 74.740 | 3,603,265 |
| |
| 38.560 | 0.600 | 38.560 | 38.570 | 38.500 | 38.710 | 38.450 | 12,486,890 |
| |
An * next to the security code indicates there has been an announcement today relating to that security. Click on the * to view the list of today's announcements.
Source: asx.com.au
Shares fire up as mood brightens
September 13 (AAP) Close, Shares pushed past the 4600-point mark today, buoyed by strong economic data from China.
At the close, the benchmark S&P/ASX200 Index was up 54.6 points, or 1.2 per cent, at 4614.9, while the broader All Ordinaries Index had risen 53.5 points, or 1.2 per cent, to 4654.2.
On a sector-by-sector basis, information technology shares soared 3.8 per cent, financials and materials both jumped 1.5 per cent and energy was up 1.3 per centgold, . Fractionally in the red were gold, health and telecoms.
need2know:
- European stocks rally at the open
- Asian shares rise on upbeat reports
- The dollar tops 93 US cents, to 4-mth high
- Oil jumps above $US77
- Gold slips to $US1242
- Dow futures gain 138 points to 10,476
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Consumer inflation in China rose at the fastest pace in nearly two years in August, but its National Bureau of Statistics showed the Asian superpower remained robust that month, suggesting its economy was not slowing as fast as many had feared.
Miners were buoyed by the Chinese data. BHP Billiton was up 60 cents, or 1.6 per cent, at $38.56, despite local shareholders having to settle for a slightly lower dividend because of the strong Australian dollar. Fellow mining giant Rio Tinto rose $1.05, or 1.4 per cent, to $75.30.
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The top-traded stock by volume was Sundance Resources, with 126.5 million shares worth $29.6 million changing hands. The iron ore explorer’s shares jumped 5 cents, or 25 per cent, to 25 cents.
Preliminary market turnover was 2.45 billion shares worth $5.62 billion, with 638 stocks up, 430 down and 387 unchanged.
Stewart ends King's reign at Leighton
September 13 (AAP) Leighton Holdings has pushed out chief executive Wal King after 23 years, promoting another company veteran into the top job.
Leighton, majority owned by German construction group Hochtief, this afternoon said David Stewart, currently co-chief operating officer, will take over on January 1, 2011.
Mr. King, 65, will stay on as a consultant to the company.
Shares in Leighton rose 97 cents, or 2.9 per cent, to close at $34.34. The shares hardly reacted to the widely expected announcement, but were buoyed by news that Leighton subsidiary John Holland Group landed a $276 million deal for a new port in Western Australia.
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Global
Asian Stocks Rise on China Production, U.S. Inventory Reports
Sept. 13 (Bloomberg) -- Asian stocks rose, driving up the MSCI Asia Pacific Index by the most in more than four months, after higher-than-forecast wholesale inventories in the U.S. and China’s industrial output increased at a faster pace than economists estimated.
BHP Billiton Ltd., the world’s largest mining company, gained 1.6 percent on speculation demand for commodities will increase. Hon Hai Precision Industry Co., the world’s largest contract maker of electronics, jumped 6.5 percent in Taipei after saying sales in August surged. Mitsubishi UFJ Financial Group Inc. rose 2 percent in Tokyo after regulators reached an agreement on strengthening banks’ capital standards in an effort to prevent a repeat of the financial crisis.
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The MSCI Asia Pacific Index gained 1.4 percent to 123.55 as of 7:22 p.m. in Tokyo, set to close at its highest level since May 4. The measure has climbed 6.6 percent from a one-month low on Aug. 25 amid speculation the U.S. will avoid slipping back into recession.
China’s Shanghai Composite Index rose 0.9 percent as the country’s currency, the yuan, advanced to a record high. Hong Kong’s Hang Seng Index climbed 1.9 percent, while Australia’s S&P/ASX 200 Index advanced 1.2 percent. Japan’s Nikkei 225 Stock Average and South Korea’s Kospi index increased 0.9 percent.
Boosting Stockpiles
Futures on the Standard & Poor’s 500 Index climbed 0.9 percent. The index gained 0.5 percent in New York on Sept. 10 after a government report showed inventories at U.S. wholesalers rose in July by the most in two years as a rebound in demand prompted companies to add to stockpiles.
In China, industrial production gained 13.9 percent in August from a year earlier, more than the 13 percent median estimate of 29 economists, a statistics bureau report showed in Beijing on Sept. 11. Consumer prices jumped 3.5 percent, the most in 22 months, as food costs climbed while retail sales increased 18.4 percent.
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Basel Agreement
The Basel Committee on Banking Supervision said it will require lenders to have common equity equal to at least 7 percent of assets. Banks that fail to meet the buffer would be unable to pay dividends, though not forced to raise cash, the board of governors said. The committee will give lenders as long as eight years to comply.
“This was anticipated and it’s already been priced into the shares,” said AMP’s Oliver. “They give up to eight years before banks have to comply, which is longer than had been thought originally.”
Misc
High cost of cashmere on Mongolia plains
Tov Province, Mongolia (CNN) -- Forty-year-old Bayanmunkh has learnt the hard way about overgrazing. Riding slowly behind his herd of close to 2,000 animals across Mongolia's arid plains, the herder reminisces about how the land has changed.
"Life has become much harder today. Nature is not what it was 10 years ago; there is more and more desert and less and less pastureland," he says.
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According to U.N. Development Program estimates, 90 percent of Mongolia is fragile dry-land; land under increasing threat from desertification. Part of the reason for this is thought to be global warming, but in Mongolia's case another significant factor is the rise of the global cashmere industry.
Mongolia is the world's second largest producer of Kashmir goat's wool behind only China with 20 percent of the world market.
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"Mogi" Munkhdul Badral
Executive Director
CPS International
Email: mogi@cpsinternational.mn
Mobile: +976-99996779
CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
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