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.
Mogi: Dear subscribers, due to my mail server spam-blocking my newswires, I'm sending them from an internet account. In replying back, please direct them to mogi@cpsinternational.mn. Thank you.
*Notice: All HK Orders are day only. Unfilled orders must be reinstated the next day*
| Close: Mongolia Related ASX Listed Companies, October 22, 2010 | ||||||||
| HUN | 0.990 | 0.040 | 0.980 | 0.990 | 0.950 | 1.010 | 0.940 | 2,947,213 |
| VOR | 0.039 | 0.003 | 0.038 | 0.039 | 0.037 | 0.039 | 0.036 | 5,086,188 |
| LRL | 0.240 | -0.010 | 0.240 | 0.255 | 0.250 | 0.255 | 0.240 | 941,880 |
| AKM | 0.190 | 0.005 | 0.190 | 0.195 | 0.185 | 0.200 | 0.185 | 6,146,762 |
| GMM * | 0.160 | 0.000 | 0.150 | 0.170 | 0.000 | 0.000 | 0.000 | 0 |
| LEI | 37.040 | -0.210 | 37.000 | 37.200 | 37.250 | 37.280 | 36.650 | 630,031 |
| RIO | 82.050 | 0.300 | 81.950 | 82.050 | 82.100 | 82.390 | 81.490 | 2,273,629 |
| BHP * | 41.600 | 0.380 | 41.400 | 41.600 | 41.440 | 41.600 | 41.200 | 9,974,737 |
Hunnu Coal Investor Presentation
October 20 (Mogi) Hunnu Coal (ASX:HUN) released an updated investor presentation after having announced it is raising A$40 million (before costs) through new shares at 80c.
HUNNU HIGHLIGHTS
Ø Hunnu Coal has now established a strong and enviable position in the world class South Gobi Coking Coal Province.
Ø Aggressive exploration programme throughout 2010.
Ø Off-take agreements currently being negotiated for the Tsant Uul and Unst Khudag deposits
Ø Total Exploration Target of 650Mt to 1 Bt of coal.
Ø Initial JORC resources to be r lease late 2010.
Ø Dual listing on Hong Kong Stock Exchange in approximately 12 months.
Ø Early discussion initiated regarding power plant development at Unst Khudag.
Ø Fast track mine scoping study for Tsant Uul Project commenced.
Ø Development timetable of three mines in four years.
Hunnu Coal to raise $40 million to accelerate Mongolian coal projects – Fortbridge, October 19, 2010
CPS Securities, lead broker on Hunnu's IPO and Placement, continues to believe HUN to be a STRONG SPECULATIVE BUY.
Other Mongolia Related ASX releases dating October 20:
- General Mining Corp. Ltd. (ASX:GMM) – September 2010 Quarterly Report
Rio Tinto seeks to speed up Mongolia copper and gold mine
RIO Tinto wants to speed up development of a copper and gold mine in Mongolia that's set to become one of the world's largest.
October 24 (AAP) The global miner said today it is committed to the major development in Mongolia, and one in Guinea, after announcing a major expansion of its operations in Australia's Pilbara region.
Rio Tinto chief executive Tom Albanese told the ABC's Inside Business program today that he was now focusing on all the work Rio was doing in Australia, but that the company had a global footprint.
"Our strategy is to look at our best first-tier, large, long-life operations on a global basis, and that's where operations like Simandou (an iron ore project in Guinea, Africa) would be. That's where the copper project we're building now in Mongolia would be," Mr Albanese said.
"These are first-tier assets on a global basis. But they're in a context of roughly 85 per cent of our assets being in OECD (Organisation for Economic Co-operation and Development) countries.
"We will take the time to develop these mines, develop them carefully, because I think they can be a very important part of our next generation of mines. And, I would like to get Simandou first production in the next five years, and again we're working on the ground to do just that."
Mr Albanese said Rio was committed first and foremost to building its joint-venture Oyu Tolgoi copper and gold mine in Mongolia to Rio Tinto standards and as quickly as possible.
"It's a first-class mine being built on time, and I'd like to see it actually get sped up if we can. First production by 2013." he said.
"It's on track as we speak, so we're building the mine today."
Oyu Tolgoi is set to be one of the world's largest mines, with 1,387,430,000 tonnes of resources in the measured and indicated categories.
Last week, Rio said $3.2 billion would be spent expanding its iron ore infrastructure in Western Australia's Pilbara region to lift annual capacity to 283 million tonnes.
Rio last week also approved a final feasibility study into increasing Pilbara production capacity to 333 million tonnes per annum.
Rio said the investment would support port and rail infrastructure works around Cape Lambert.
Rio Tinto would contribute $US2.1 billion, while its joint-venture partners would pay the remainder.
Related articles:
Ivanhoe tension will not stop Mongolia mine-Rio Tinto – Reuters, October 24, 2010
Rio Blocking Ivanhoe Share Sale May Be Tough, RBC Says
Oct. 20 (Bloomberg) -- Rio Tinto Group, building a $4.6 billion copper and gold mine with Ivanhoe Mines Ltd., may have difficulty in blocking Ivanhoe's planned $1 billion share sale should it choose to do so, according to RBC Capital Markets Ltd.
Ivanhoe this week said it planned a rights offer to help fund development of the Oyu Tolgoi mine in Mongolia. Rio, which owns 35 percent of Ivanhoe, has informed the company that it's "reserving its rights to make an arbitration claim or seek injunctive relief to protect its interests," Vancouver-based Ivanhoe said in an Oct. 18 regulatory filing.
"Among Rio's remedies would be an injunction against the rights offer, though this might prove difficult," Des Kilalea, a London-based analyst at RBC, wrote today in a report. "Ultimately, Rio wants more of Oyu Tolgoi and Ivanhoe is, we believe, a seller -- at a price."
Rio has described Oyu Tolgoi as the world's largest untapped copper and gold deposit, and it's due to start output in 2013. The two companies are locked in a dispute over a shareholder rights plan adopted by Ivanhoe in April. They agreed to an arbitration hearing starting Jan. 18, Ivanhoe said in the filing.
A disagreement between the two companies could lead to delays in starting the mine, while the partners will seek to avoid this, RBC said. Ivanhoe is seeking to raise between $800 million and $1 billion from the rights offer and has yet to disclose the price at which shares will be sold.
Superior Options
Rio sees superior financing options for Ivanhoe and the plan offends its right of first offer, said Ivanhoe, which told Rio the idea is "wrong and without merit."
"We have advised the representative, the Chief Executive Officer and board of directors of Rio Tinto that if the rights offering is delayed or impeded by Rio Tinto's conduct, we intend to hold Rio Tinto fully liable for any and all losses Ivanhoe may suffer as a result of Rio Tinto's actions," it said.
"Our first priority is to the Oyu Tolgoi project and making sure that nothing stands in the way of its swift development," Tony Shaffer, a London-based spokesman for Rio Tinto, said today in an e-mailed statement.
Under current share-purchase warrants, Rio has the right to increase its stake to about 44 percent. In a July filing, Rio said it had held talks with Aluminum Corp. of China, which indicated an interest in acquiring a minority stake in Ivanhoe or the project.
Ivanhoe, which spent more than six years negotiating an accord with Mongolia for the project, said in January it hired Citigroup Inc. to study options, including debt and equity offerings and asset sales.
The 81.3 billion pounds of copper and 46.4 million ounces of gold at Oyu Tolgoi may give the site a 59-year life, Ivanhoe said in May. The mine will produce an average of 1.2 billion pounds of copper and 650,000 ounces of gold a year for the first decade, it said.
Erdenes - Tavantolgoi Company Established, 3 Bidders Left
October 21 (UB Post) "Erdenes-Tavantolgoi" Ltd to develop and operate the Tavantolgoi Coal Deposit has been set up, under the decision of the Cabinet of Ministers on October 20.
The Cabinet decides to set up Erdenes-Tavantolgoi Ltd as a wholly owned subsidiary of Erdenes MGL, a state-owned LLC established for purpose of representing the Government of Mongolia in ownership and development of strategically important mining deposits in Mongolia. The money required for registered capital of Erdenes-Tavantoloi is to be funded from the capital of Erdenes MGL LLC.
According the plan approved by the Parliament, it plans to sell in an initial public offering (IPO) a 30 percent stake in Erdenes-Tavantolgoi, aiming to raise about US$1.5 billion. The plan states 50 percent of Erdenes-Tavantolgoi is to be retained by the government, 10 percent of the company is to be given to members of the public for free, in the form of ownership vouchers, while another 10 percent is to be sold to Mongolian businesses at a nominal price in order to involve them in the development of the giant deposit.
The Cabinet of Ministers also approved the directives of a working group in charge of implementing the open selection of foreign and domestic investor to cooperate in development of a certain part of Tavan Tolgoi Coking Coal Deposit.
The working group is to hold negotiations on preconditions of the tender bid with foreign companies and governments interested in the project and announce the contract winner within this year.
At the moment, three companies out of eleven initial bidders have been qualified to next round of the selection. They are Leighton Asia and Macmahon Holdings Limited both from Australia and BBM Operta Group from Germany.
The Tavan Tolgoi Deposit has estimated coking coal reserves of 6.5 billion metric tons.
Petro Matad Has Lived Up To Expectations - Westhouse Securities
October 21 (Proactive Investors USA & Canada) Mongolia-focused oil group Petro Matad (LON:MATD) may be able to extend the 2010 work programme, according to Westhouse Securities analyst David Hart.
The analyst highlighted that, as winter approaches, Petro Matad is nearing the end of its three well drilling programme on Block XX in eastern Mongolia - where it discovered oil earlier this year.
"Thus far results from the first two wells on the Davsan Tolgoi Prospect ... [and] laboratory analysis have lived up to expectations," Hart said.
"We are also encouraged by the rapid progress being made by the DT-3 well and the pursuit of additional equipment by the company, which will potentially enable the 2010 work programme to be extended."
Hart also noted that Petro Matad has completed the 2D seismic survey over the other two exploration blocks in the area. The company is currently awaiting the interpretation of the new seismic data.
Westhouse rates Petro Matad as a 'buy' with a 250p target.
Mongolia Extractive Industries Meet 'Compliant' Standard
October 19 (WSJ) Mongolia and Ghana received "compliant" status from the Extractive Industries Transparency Initiative, a corporate, civil society and government-composed group devoted to increasing financial disclosures in the oil, gas and mining industries.
The group, which is currently meeting in Dar-es-Salaam, Tanzania, requires an independent assessment of a country's disclosure and reporting practices in order to become a compliant state. The meeting was called to consider the status of those countries, along with Cameroon, Gabon and Kyrgyzstan, and the applications of Indonesia and Togo.
With Mongolia and Ghana joining, that now makes five countries compliant; the others are Azerbaijan, Liberia and Timor-Leste. Indonesia joined as a "candidate" state, which means it will have to implement the principles of the initiative–government disclosure of payments received, companies publishing what they pay to the government and the completion of an independent audit–in order to receive "compliant" status.
…
Of Mongolia, Eigen said in a separate statement: "Since committing to the EITI in 2005, Mongolia has published payments from its extractive sector in three excellent EITI Reports…This allows all stakeholders in Mongolia to monitor one of the most important sources of government revenue, and to monitor an Industry that is transforming Mongolia's economy."
EITI played a small-but-controversial role in the U.S. financial regulation reform debate, as a provision in the legislation President Obama signed into law in July applies the principles of the initiative by mandating the disclosure of payments made to foreign governments by extractive industry companies regulated by the Securities and Exchange Commission.
MMC Market Cap Up on Over-allotment
October 22 (Mogi) Mongolian Mining Corporation (HK:975) issued 107,914,000 shares yesterday, pursuant to the exercise of over-allotment option, making its total outstanding shares 3,705,036,500 and its public shareholding to 22.3%.
HK:0975 Snap quote, October 22 (all in HKD except where noted):
· Close: $9.00
· Open: $9.30
· High: $9.32
· Low: $8.84
· Listing price: $7.02
· Volume: 14.575 million shares
· Total turnover: $132.294 Million
· Market cap (on close): $33.345 Billion (around US$4.3 billion (Bloomberg October 22: US$=HK$ 7.7661))
Link to real-time quotes and charts of MMC (sites licensed by HKEx): ETNET, AAStocks
World Bank: Mongolia staged an impressive recovery
October 15 (World Bank Mongolia Quarterly Economic Update, October 2010) Executive Summary: Mongolia has staged an impressive recovery from the steep recession of late 2008 and early 2009. Moreover, the economic recovery is becoming broad-based. Strong demand for copper and coal from China are fuelling the recovery, and are also helping to substantially improve the external balance. And imports are up by 55 percent in August on a year-on-year basis. The exception is the agriculture sector, due to the devastating impact of the dzud during the winter months, which wiped out substantial numbers of livestock.
…
Laugh if you like, but Mongolia is a serious play
October 22 (FT) I've been talking up the imminent arrival of Mongolia as a hot new investing destination for years now, usually to hoots of derision.
Last week, though, I had not one but three separate confirmations that Mongolia has finally become the newest "in thing" in the fickle world of investing. The first indicator was at an event for a City think-tank called the CSFI. This august institution usually doesn't talk much about adventurous investing and certainly not about Mongolia but at a gathering of Big Bears – pessimistic types predicting a coming financial storm – the subject of Mongolia came up.
While most of the speakers were rather predictably banging on about gold, one talked about the growing supply issues facing the global resources sector and the fact that Mongolia seems to have most of the easy access mega projects worth investing in. Crucially, its canny political leadership has no intention of being gobbled up by either the Chinese or the Russians in a resources land grab and is busily playing off each of these superpowers. For example, a new railway project linking Mongolia's vast coal deposits to its chief customer in China goes all the way to the border but has been built using Russian track gauges.
A couple of days later, another development caught my attention – namely that one of the most successful international stockpickers, James Barstow at Aurora investment trust, has made a big bet on a Mongolian oil play called PetroMatad, which is itself attracting huge attention among the speculative small-cap brigade on the London market. Barstow has also made big bets on London- listed West China Cement, which is an indirect play on the infrastructure and resources boom in neighbouring Inner Mongolia (source of most of China's coal reserves) and Shaanxi province. It's best to see the Mongolia story as part of a wider regional narrative that includes the Chinese resource-rich provinces of Xinjiang and Inner Mongolia, as well as the state of Mongolia proper.
The clincher for me, though, came with the news that a specialist investment research firm called Eurasia has launched...wait for it…a Mongolian equity tracking index. Now before we all fall over ourselves to issue buy orders for that lesser-spotted Mongolian exchange-traded fund, I should say that the index is still a vulnerable, young waif, comprising an odd mixture of hugely speculative miners and a few financial services groups. But its launch speaks of a new mania gripping the Asian markets. Barely a week goes by without some Hong Kong-based outfit announcing it's about to launch a big new Mongolian division. I've heard of aircraft arriving in the Mongolian capital, Ulan Bator, crammed full of bankers, mining execs and stock promoters all desperate to come up with the next Big Mongolian Thing.
I'd suggest that the fun and games have only just begun when it comes to this landlocked, resource- rich country. I'm absolutely certain that we'll see some specific Mongolian funds emerge which that offer investors a more attractive play on this frontier market – at the moment all but a handful of the companies on the Eurasia index are very specific resource exploration companies. The biggest opportunities will be in the broader service economy sector as well as in real estate and infrastructure. But I predict the multiplier effects of billion-dollar projects will cascade into the small, illiquid local stock market, triggering a massive bubble.
Origo's chief executive Chris Rynning says: "It is inevitable that Mongolia will experience bubbles with international investors charging in, creating immediate domestic wealth and rapid asset appreciation." He adds the important caveat that "a lot of Mongolian companies look very pricey already. I think many of them will struggle to meet their production targets, mainly because of slower-than-expected infrastructure build-out".
Visit to Japan of H.E. Tsakhia Elbegdorj, President of Mongolia and Ms.Khajidsuren Bolormaa
October 22 (MOFA of Japan) H.E. Mr. Tsakhia Elbegdorj, President of Mongolia and Ms. Khajidsuren Bolormaa, will pay an Official Working Visit to Japan from 15 November to 19 November, 2010.
During their stay in Japan, the President and Ms. Bolormaa will make a State Call on Their Majesties the Emperor and Empress of Japan, and Their Majesties the Emperor and Empress will host a Court Luncheon in honor of the President and Ms. Bolormaa.
Mr. Naoto Kan, Prime Minister of Japan, will hold a meeting with the President.
The Government of Japan sincerely welcomes the visit of the President and Ms. Bolormaa, which will further strengthen the friendly relations between Japan and Mongolia.
Australia
Singapore eyes tie-up with ASX
October 23 (BusinessDay.com.au) THE nation's monopoly sharemarket operator, the Australian Securities Exchange, is back in talks with its offshore rivals and in the crosshairs of its Singaporean counterpart in what may create a $14 billion regional stock trading hub.
Faced with the threat of foreign competition for the first time and effectively rudderless after its chief executive, Robert Elstone, announced his resignation this month, the ASX and Singapore exchanges halted trade in their shares yesterday following a jump in the Australian bourse's share price amid speculation of a merger.
''A party has recently reactivated confidential discussions with ASX concerning a possible business combination,'' a statement from the Australian exchange said.
It added that it had observed a rise in its share price but did not yet have anything to disclose.
The Singapore Exchange halted trade in its shares within minutes of the ASX statement, ''pending an announcement''.
…
Sources did not rule out the possibility of a takeover offer should agreement on merger terms not be reached.
The upper hand appears to be with Singapore, amid reports it will provide the chairman and chief executive of the merged group.
The larger Singapore exchange is valued at $S10.2 billion ($8 billion), compared with the ASX's market value of more than $6 billion.
Market speculation of a tie-up in recent months has centred on Singapore, given its geographic and timezone similarities as well as both operating similar integrated business models.
…
The local bourse faces a significant competitive threat with the government poised to allow foreign competitors to operate share exchanges in Australia.
…
Global
Growth Probably Sped Up on Spending Gain: U.S. Economy Preview
Oct. 24 (Bloomberg) -- The economy in the U.S. probably grew at a faster pace in the third quarter, reflecting a pickup in consumer spending that bodes well for the recovery's staying power, economists projected a report this week will show.
Gross domestic product rose at a 2 percent annual pace, up from a 1.7 percent rate in the previous three months, according to the median estimate of 67 economists surveyed by Bloomberg News before an Oct. 29 Commerce Department report. Other data may show business investment remains a mainstay of the economic rebound, while housing is mired in a slump.
The pace of growth would still not be strong enough to give the 14.8 million unemployed Americans hope of finding work soon, one reason why Federal Reserve policy makers may be about to pump more money into the economy. Wal-Mart Stores Inc. and Target Corp. are among retailers likely to gain as discounts lure budget-conscious shoppers during the year-end holidays.
"There's no question about the sustainability of the recovery now," said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. "But unless we grow faster, we don't have a shot at bringing down unemployment significantly. Improvement in consumer spending is a sign the holiday season will be better than in the past couple of years."
…
<Mogi & Friends Fund A/C>
Little changed
Mogi & Friends Fund is a tiny fund of US$6,000 I created with a few friends to put my own (and a few friends') money where my mouth (just mine) is.
Little has happened since last entry. Overall return is a bit over 30%.
Mogi
"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.
No comments:
Post a Comment