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.
MMC closes 4.7% higher, intra-day high of 7.26% more than offer
October 13 (Mogi) Mongolian Mining Corporation (HK:975) erased everyone's doubts it was headed for a flat debut today on The Hong Kong Stock Exchange (HKEx).
As earlier reported, MMC was lower in pre-market trading in a platform called PhillipMart, an online trading platform licensed by the Securities and Futures Commission (SFC) to provide trading of pre-IPO shares prior to their official listing on the HKEx.
HK:0975 Snap quote (all in HKD):
· Listing price: $7.02
· Open: $7.02
· High: $7.53
· Low: $7.02
· Volume: 195.829 million shares
· Total turnover: $1.409 billion
· Market cap (on close): $26,438.850 million (around US$3.4 billion)
MMC were sold in blocks of 500 shares.
I'm also happy to report that our local clients at CPS Securities were able to take part in this historical day and claim its stake as a shareholder in MMC. Feel free to contact us and claim your OWN share.
Link to real-time quotes and charts of MMC (sites licensed by HKEx): ETNET, AAStocks
With IPO Done, Mongolia Mining Is on M&A Trail
October 13 (WSJ) HONG KONG—Mongolia Mining Corp. is looking out for acquisition targets in the Mongolian resources sector following an initial public offering in Hong Kong raising $650 million, according to its top executive.
Odjargal Jambaljamts, executive chairman of Mongolia Mining, said the company "will focus more on coal and iron ore" in identifying potential targets. "A major criterion will be proximity to the Mongolian-Chinese border," he said.
Mongolia Mining shares were around 7.44 Hong Kong dollars (95.9 cents) in early afternoon trading, up about 6% from their listing price of HK$7.02.
Mongolia has attracted attention as an investment theme the past year, following a landmark agreement last October allowing Ivanhoe Mines Ltd. and Rio Tinto PLC to develop a long-awaited $4 billion gold-and-copper mine.
The country's abundant mineral and energy resources and its location next to China's fast-growing economy have fueled expectations of a major resources boom in the landlocked, desert country of about 2.6 million people.
Mongolia Mining is the first Mongolian company to list its shares in Hong Kong, though several other companies doing business with Mongolia have already raised funds on the exchange.
Earlier this week, shares of Beijing-based Winsway Coking Coal Holdings Ltd., which purchases coal from Mongolia, processes it and distributes it in China, fell 8.6% on their first day of trading in Hong Kong, though they have recovered some ground since then. On Wednesday afternoon, the shares were trading at HK$3.58, flat from the previous day and down about 3% from their listing price of HK$3.70.
Mongolia's ability to deliver goods to China is hampered by poor transportation links. Mr. Jambaljamts said that there are plans for two new rail lines already approved by Mongolia's parliament, including a direct link from the company's Ukhaa Khudag deposit in the southern Gobi desert to the Chinese border that would cut its transport costs in half. Currently, all of the company's coal is delivered to the border by truck.
"The railway will help increase our margins significantly," he said.
However, the timing of construction for the two projects won't be known until the first quarter of 2011, he said.
Mongolia Mining IPO sets the tone for tomorrow's investment summit in Hong Kong
October 13 (news.mn) L.Bolormaa, Editor of the Mongolian Mining Journal, is in Hong Kong to attend tomorrow's Mongolia investment Summit – 2010. She sends this report.
The conference will explore the many exciting investment opportunities on offer, as Mongolia takes advantage of its mineral-rich geology and location next to China - the world's fastest growing consumer of natural resources. It has gained special attention from investors following the successful IPO of Mongolia Mining, and business newspapers and news agencies have arranged detailed coverage.
The Hong Kong Stock Exchange (HKSE) has a round main hall, and dealers are identified by their sleeveless red shirts and their number tags. The electronic board in the center shows the most recent stock prices of all the companies listed at the HKSE and so it is constantly being updated. For example one could follow Mongolian Mining's shares fluctuate between an intraday high of HKD7.17 and low of HKD7.02, with a turnover of HKD638.18 million from 90.43 million shares traded. Among those keenly watching the fluctuation was Mineral Resources and Energy Minister D.Zorigt.
The HKSE is the 7th largest of its kind in the world and the net worth of mining and energy companies listed here is USD390 billion. Rivalries abound. Winsway and Mongolia Mining offered their IPO in the same week. Winsway transports raw coal from Mongolia and is watching the moves of MMC to build a coal washing plant in Ukhaakhudag so that it can sell the processed product to China. Winsway shares today traded for HKD3.25-HKD4.50.
HKSE has a practice of keeping mementos of IPOs. A morin khuur will be on display, as has been an elegant aluminum matrehska since the IPO by the Russian company Rusal. Lorenz Fauk, Marketing Director of HKsE, feels the MMC IPO was a big step in convincing investors of the transparent and good governance of Mongolian companies.
Social Investment Company resposAbility Invests $500K in Credit Mongol of Mongolia
October 12 (MicroCapital.org) responsAbility Social Investments AG (responsAbility), an investment manager founded in 2003 in Switzerland, reported to MicroCapital that it recently made five debt investments totaling USD 5.5 million in microfinance institutions (MFIs) Prasac of Cambodia and Credit Mongol of Mongolia.
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In addition, Mikrofinanz-Fonds made a debt investment totaling USD 250,000 in Credit Mongol, a non-banking, limited liability MFI established in 2000, at a fixed rate of 9.25 percent for a period of 24 months. Lastly, rAGMF made a debt investment in Credit Mongol totaling USD 250,000 under the same terms. As of December 2008, Credit Mongol reports to the Microfinance Information Exchange (MIX) USD 4.9 million in assets, 1,524 active borrowers, a gross loan portfolio of USD 4.2 million, return on assets of 9.35 percent and return on equity of 26 percent.
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About Credit Mongol LLC: Credit Mongol LLC is a non-banking microfinance institution (MFI) established as a limited liability company in 2000 in Mongolia as part of the European Union Tacis Programme, which seeks to help partner states in Eastern Europe and Central Asia transition into market economies. Credit Mongol aims to provide microloans to small and medium-sized enterprises and currently serves six regions in Mongolia. As of December 2008, Credit Mongol reports USD 4.9 million in assets, 1,524 active borrowers, a gross loan portfolio of USD 4.2 million, a return on assets of 9.35 percent and a return on equity of 26 percent to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.
KOICA to start largest water aid projects yet
October 13 (Korea Herald) Korea's largest water development aid projects yet will kick off in three Asian countries, with the aim to better the lives of millions of people, the Korea International Cooperation Agency said Wednesday.
The agency, as part of the East Asia Climate Partnership, will start projects in Mongolia, Azerbaijan and the Philippines with an estimated budget of 78 billion won ($69 million), hoping to directly affect 639,000 lives and indirectly affect countless more.
In Ulaanbaatar, the KOICA plans to stabilize the water supply by building wells and insulating water reservoirs among other things.
The people of Mongolia's capital have been suffering from a lack of water due to a sudden inflow of nomads trying to escape the cold snap.
When the project finishes in 2014, it is expected to serve over 330,000 people.
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The East Asia Climate Partnership has committed over $200 million over a five-year period which started in 2008.
The KOICA currently runs 26 Official Development Assistance projects in 12 countries.
French minister visits Mongolia to promote nuclear energy cooperation
ULAN BATOR, Oct. 13 (Xinhua) -- Visiting French Minister of State for foreign trade Anne-Marie Idrac started a two-day visit to Mongolia to seek bilateral cooperation in nuclear energy Wednesday.
The minister was received by Mongolian President Tsakhia Elbegdorj, Speaker of the Mongolian parliament Demberel Damdin, and Foreign Minister Zandanshatar Gombojav.
The French delegation includes representatives of the state-run uranium company Areva Group, which has uranium interests in eastern Mongolia.
During the visit, a Mongolian-French business forum is expected to be held to discuss trade and economic cooperation between the two countries.
It is also expected that Mongolia and France will sign a memorandum of understanding on cooperation in the uranium sector Thursday.
The French minister said "we will sign an agreement on cooperation in the nuclear energy field. Areva is a world-class uranium company. This intergovernmental agreement will be the basis for Areva's operation in Mongolia."
France was supporting all dialogue between Mongolia and the European Union, she said.
She handed over an official letter from French President Nicolas Sarkozy to his Mongolian counterpart Elbegdorj.
In the letter, Sarkozy said he attached importance to cooperation between the two countries, a Mongolian press release said.
President Elbegdorj said, "We appreciate that France, having rich experience in nuclear energy, is working with Mongolia."
Areva, one of the world's biggest atomic energy groups, has increased its investment and business in Mongolia in recent years. It holds several uranium licenses in eastern Mongolia.
Mongolia to import B.C. lumber
Mongolian wood frame sector looks towards B.C.
October 6 (BCLocalNews.com) The government of Mongolia plans to build 96 regional government centres from B.C. lumber and Canadian wood technology, Forests and Range Minister Pat Bell announced recently.
"B.C.'s 'Wood First' approach to build more public buildings out of wood is gaining recognition around the world," Bell said. "The government of Mongolia has recognized that B.C. wood products and wood-frame construction are ideally suited to government and institutional buildings and for housing."
Over the past few years B.C. has helped Mongolia adopt its building code for wood- frame construction, train officials and inspectors, and set up a Mongolian wood-frame construction sector.
"Wood-frame construction is energy-efficient, climate-friendly, and well suited to our needs in Mongolia," Prime Minister Sükhbaataryn Batbold said. "With the support of British Columbia, our government has adopted Canada's wood-frame building code and will be using Canadian wood technology and wood products from British Columbia in new public buildings around Mongolia."
Bell and Batbold commented after the signing of a memorandum of understanding between Mongolia and B.C., through which B.C. will provide technical expertise to assist in the design and supervision of the project. Under the MOU, Mongolia agrees to buy all structural lumber for the centres from B.C. suppliers.
IREO launches Carbon-Zero project in Mongolia
October 13, Ulaanbaatar, Mongolia, /MONTSAME/ The International Renewable Energy Organization /IREO/ in cooperation with the United Kingdom based Humanitad international NGO, has chosen Mongolia as the very first Flagship Pilot Nation for their newly launched, Exemplar-Zero Initiative-carbon-zero, sustainable development global initiative. Mongolia was announced the Flagship Pilot Nation during the official inauguration of the E-Z Initiative, held in New York on October 10-11, 2010. This news was reported Tuesday by the Mongolia's President's website.
Among the participants were: Founder of Humanitad as well as IREO Director General, Mr. Sasha Stone; IREO Secretary General Mr. Robson Mello; Chairperson of the Economic Innovations Committee of IREO and CEO of M-CAM, Dr. David E. Martin; Senior Advisor to the President of Mongolia, Mr. Tsagaan Permanent Representative of Mongolia to the United Nations, Mrs. Enkhtsetseg and others.
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From January, every citizen will get MNT 21,000 per month
October 13 (news.mn) Minister of Finance S. Bayartsogt has said the draft budget for 2011 may not have a smooth passage in Parliament as it has been proposed in compliance with the new Fiscal Stability Law and may not meet traditional expectations. However, it also reflects the fact that Mongolia is coming out of the crisis and that its economy is rapidly developing. If all goes as envisaged, the budget will henceforth be responsible for providing funds for public service, while finance for economic development will come from the Development Bank.
The coalition government is committed to meeting the election pledges of political parties, as it begins collecting revenue from strategic deposits. The technical basis for this is almost ready to be put in place. This year's draft budget has MNT780 billion for wages and pensions, and MNT805 billion to be spent from the Human Development Fund. The amount distributed among people will rise by MNT500 billion this year. Every Mongolian will receive MNT21,000 per month in 2011. Besides MNT82.5 billion will be spent on allocating MNT500,000 towards the tuition fee of every post-school student, MNT10.9 billion to health insurance, and MNT9.3 billion to those without health insurance coverage now.
Striking Centerra workers receive pay raises of 20 to 50 per cent
October 12 (The Canadian Press) TORONTO - Workers at Centerra Gold Inc.'s Kumtor mine in the Kyrgyz Republic received raises of between 20 and 50 per cent in a new contract that settled a 10-day strike, the company said Tuesday.
Employees at the mine went on strike Oct. 1 over a pay dispute. They were demanding a 100 per cent raise, reflecting the improving finances of the gold mining sector, while the company countered with an offer of a 25 per cent increase.
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Peabody eyeing a coal field in Mongolia to apply the Power River Basin Model
June 25 (trib.com) LARAMIE -- A Peabody Energy executive says Wyoming's Powder River Basin model for mining coal should be applied in nations around the world in order to lift growing populations out of poverty and to further advance economies of developed nations.
Fred Palmer, senior vice president of government relations for Peabody, spoke at the International Advanced Coal Technologies Conference in Laramie this week. For Palmer, using more coal is a matter of human rights in that cheap coal offers a higher standard of living for all.
Cheap coal power "allows people to live better and live longer," said Palmer.
The Powder River Basin coal mining district in Wyoming is regarded as the most prolific coal mining model in the industry to date. Some 14 active coal mines extract more than 400 million tons annually, and two railroads deliver that coal to some 37 states.
The district is said to have a capacity upwards of 500 million tons annually, which would amount to half the United States coal supply.
Now Peabody Energy -- and other companies -- are eyeing a coal field in Mongolia to apply the Powder River Basin model.
With its own newly acquired interests in Mongolia near the northern Chinese border, Peabody said Mongolia is poised to establish a Powder River Basin-style coal mining district twice the size of Wyoming's within the span of just 10 years. It took about 35 years to establish the current Powder River Basin mining district.
"The market for that coal, obviously, is China," said Palmer.
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Palmer said if the richest nations in the world force developing countries to put the current CO2 emissions-heavy coal power plant model on the shelf, it would be inhumane to those populations desperate to lift themselves out of poverty.
"I say it's energy apartheid to sit here in the U.S. and say the rest of the world cannot enjoy the same lifestyle," said Palmer.
Mongol Bank October 13 FX Rates
| Currency | Rate |
| USD | 1,313.82 |
| EUR | 1,814.91 |
| JPY | 16.03 |
| CHF | 1,355.22 |
| GBP | 2,085.56 |
| HKD | 169.29 |
| RUB | 43.62 |
| CNY | 196.87 |
| KRW | 1.16 |
| CAD | 1,292.62 |
| AUD | 1,285.64 |
Source: Mongol Bank FX Site
Australia
| Close: Mongolia Related ASX Listed Companies, October 11, 2010 | ||||||||
| HUN | 0.890 | -0.010 | 0.860 | 0.895 | 0.895 | 0.920 | 0.860 | 963,351 |
| VOR * | 0.037 | 0.000 | 0.037 | 0.039 | 0.040 | 0.041 | 0.036 | 7,421,815 |
| LRL | 0.245 | 0.010 | 0.245 | 0.250 | 0.235 | 0.250 | 0.235 | 3,375,771 |
| AKM * | 0.140 | -0.010 | 0.140 | 0.145 | 0.155 | 0.155 | 0.140 | 1,369,328 |
| GMM | 0.165 | -0.020 | 0.150 | 0.175 | 0.180 | 0.180 | 0.165 | 63,043 |
| LEI | 36.030 | 0.180 | 36.030 | 36.120 | 36.030 | 36.300 | 35.980 | 1,409,555 |
| RIO | 78.620 | 0.750 | 78.620 | 78.700 | 78.800 | 79.700 | 78.620 | 3,484,707 |
| BHP | 40.820 | 0.080 | 40.820 | 40.910 | 40.840 | 41.040 | 40.600 | 11,061,455 |
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 flat as profit takers move in
Close The Australian sharemarket has closed flat giving up most of the day's gains as the big banks fell, while miners posted gains.
At the close, the benchmark S&P/ASX200 Index was up 1.7 points at 4619.9, after earlier rising as high as 4656.8. The broader All Ordinaries Index inched up 4.8 points, or 0.1 per cent, to 4691.1.
Among the sectors, materials were up 0.6 per cent, but financials fell 0.4 per cent and energy shares ended flat.
need2know:
- Asian stocks rise on recovery optimism
- The dollar rises to 98.5 US cents
- Gold climbs to $US1355
- Oil tops $US82 as Chinese imports soar
- Dow futures are 13 points higher at 10,970
Macquarie Private Wealth division director Lucinda Chan said the market started favourably and finished overall slightly higher.
''It's been trading sideways more or less,'' Ms Chan said. ''This morning there was a bit of uncertainty about some of those markets offshore. People were a little bit nervous about the Yen as well, so that saw the Asian markets dip a bit earlier on. We basically followed suit.''
…
The major miners closed stronger. BHP Billiton was up 8 cents at $40.82, while Rio Tinto rose 75 cents to $78.62. Fortescue Metals Group was the best performing stock on the S&P/ASX 50 index, closing up 30 cents, or 5 per cent, at $6.30.
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Preliminary market turnover was 2.73 billion securities worth $5.30 billion, with 603 stocks up, 497 down and 369 unchanged.
Misc
China to Donate Vaccine to Mongolia to Combat Foot-and-Mouth Disease
October 12 (Xinhua) China would donate 100,000 doses of vaccine to Mongolia to help fight foot-and-mouth disease in the country's east, the Mongolian government said Tuesday.
Enkhbbold Miegombo, deputy prime minister and head of the national emergency commission, said current efforts to fight the disease were not satisfactory.
Until Oct. 1, 10 counties in Dornod and Sukhbaatar provinces have suffered outbreaks of the disease, but this had grown to 16 on Monday, Mongolian officials said.
The deputy prime minister said some officials in the provinces would be held accountable for incompetence in fighting the disease.
The officials in the firing line included governor of Sukhbaatar province, whose future would be discussed at a cabinet meeting.
Currently, 20,550 out of 31,400 livestock animals in 16 counties were infected with foot-and-mouth disease and 20,346 had been culled, said Orgil, chairman of Mongolia's veterinary service and livestock breeding agency.
About 2.4 million livestock animals have been vaccinated in the eastern provinces of Mongolia.
The agency appealed to other countries and international organizations for help and asked for foot-and-mouth vaccine and other necessary products.` Some countries and international organizations have pledged to help Mongolia combat the contagious livestock disease.
Orgil said Russia was ready to sell 600,000 doses of vaccine at an appropriate price.
Jackie Chan Blogs About Charity Trip To Mongolia
October 13 (Look To The Stars) LookToTheStars.org recently reported on Jackie Chan's charity trip to Mongolia. The action star has now blogged on his visit.
"Upon arriving in the Chinggis Khaan Airport, I was greeted by so many people, children and adults alike," wrote the star. "I was excited to be here for the first time – especially for something that I love to do, which is charity. Mongolia has some of the worst air pollution in the world and even before I landed, I could see the smog. The new government wanted to do promotion for clean air and asked me to help out. I didn't just want to come to Mongolia to do one thing, so I asked if I could do charity as well.
"A lot of people said to me, "Jackie, thank you for coming to Mongolia." I said, "Why not? The planet belongs to us. I am the citizen of the world." When I am in Mongolia, I am Mongolian. If I am in Beijing, I am Beijingnese. Ha ha. If every person thought that they belonged to the planet, they would treat every country as if it were their own country. They would treat people as their own people, no matter if they were white, black, red or yellow. Also if we belonged to the planet, we would treat the environment better too."
To read Jackie's full blog and see his personal photos of the trip, click here
<Mogi & Friends Fund A/C>
And up it goes again
Mogi & Friends Fund is a tiny fund of $6,000 I created with a few friends to put my own (and a few friends') money where my mouth (just mine) is.
Mogi: On a separate note: Following MMC's debut today was an exhausting but quite an exciting experience. No doubt MMC will bring "stocks" much much closer to the public's radar. Today is, in a sense, a proud day for Mongolia. Hats off to Energy Resources, the excellent team over there; MCS, with excellent management, and of course also George, the Managing Director of Hunnu Coal, the man who built up Ukhaa Khudag mine, or even mining at MCS Group.
OK, back to our little tiny fund. 15 or so percent up today, to make my total return 9%, in 2 weeks. If had sold my shares today, I would've made $470, pure profit minus the brokerage, according to my trusted Google Finance and I think there was enough volume there to actually make it happen.
Well, as I said, I'm looking for the big bucks. Didn't sell, so we'll see.
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.
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