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 27, 2010 | ||||||||
| HUN * | 1.000 | 0.005 | 0.985 | 1.010 | 1.020 | 1.020 | 0.980 | 1,033,876 |
| VOR | 0.038 | -0.003 | 0.038 | 0.039 | 0.041 | 0.043 | 0.038 | 6,986,654 |
| LRL | 0.265 | 0.010 | 0.265 | 0.270 | 0.260 | 0.275 | 0.260 | 1,831,158 |
| ALG * | 0.300 | 0.100 | 0.300 | 0.360 | 0.250 | 0.360 | 0.250 | 219,500 |
| AKM * | 0.255 | -0.005 | 0.255 | 0.260 | 0.280 | 0.280 | 0.255 | 10,762,777 |
| GMM * | 0.170 | 0.000 | 0.150 | 0.170 | 0.155 | 0.170 | 0.150 | 49,000 |
| LEI | 36.930 | -0.920 | 36.900 | 37.100 | 37.810 | 37.890 | 36.830 | 811,929 |
| RIO | 82.350 | -1.710 | 82.340 | 82.400 | 83.600 | 83.990 | 82.320 | 4,124,225 |
| BHP | 41.490 | -0.340 | 41.410 | 41.490 | 41.680 | 41.800 | 41.260 | 9,307,582 |
An * next to the security code indicates there has been an announcement today relating to that security. Click on the * to view the announcement.
Source: asx.com.au
ASX Announcements, October 27:
Hunnu Coal (ASX:HUN) – Notice of General Meeting
Alamar Resources (ASX:ALG) - Acquisition of Mongolian Resource Company
Aspire Mining (ASX:AKM) - Annual report
General Mining Corporation (ASX:GMM) – Quarterly Cash Flow Report
Mongolia court rules in favor of Khan Resources
Mogi: KRI up by as much as 22% in early trading
* Appellate court upholds administrative court decision
* Says NEA has right to appeal ruling within 30 days
Oct 27 (Reuters) - Khan Resources Inc (ASX:KRI) said the Mongolian appellate court ruled in its favor regarding its mining license and upheld an administrative court decision, which was contested by the Nuclear Energy Agency (NEA).
In July, the Capital City Administrative Court had said notices issued by the NEA meant to invalidate the mining license held by Khan's subsidiary, Central Asian Uranium Co LLC, were illegal and invalid.
Khan, which owns license to explore uranium at Dornod, has been facing trouble from the Mongolian authorities.
The NEA has a right to appeal the appellate court ruling within 30 days, Khan said in a statement.
"We now trust the NEA will move forward with re-registering our licenses under the Mongolian Nuclear Energy Act, or will provide just cause as to why not, all as prescribed by the laws of Mongolia," Chief Executive Grant Edey said in a statement.
The company had submitted applications for re-registration of the mining and exploration licenses in November 2009.
Shares of Toronto, Ontario-based Khan closed at 38.5 Canadian cents Tuesday on the Toronto Stock Exchange. They have lost 38 percent of their value year to date.
Winsway Announces Several New Supply Deals
Mogi: Winsway (HKG:1733) down 3.5% to HK$3.81 on close but before this announcement. Listing price was HK$3.70.
The Company announces that, in response to strong demand from steel mills in China, the significant increase in the exporting of coking coal from Mongolia, and the expected improvement in the cross border logistical capabilities and coal processing capacities of the Group in the last quarter of 2010, the Company has recently entered into several new supply contracts and confirmation order in addition to its original procurement plan.
October 27 (Winsway) In response to continued strong demand from steel mills in China, the significant increase in the exporting of coking coal from Mongolia, and with the expected improvement in cross- order logistical capabilities and coal processing capacities in the last quarter of 2010, the Company announces that it has recently entered into the following new supply contracts and confirmation order in addition to its original procurement plan and the earlier announcement of 1,200,000 tonnes semi-soft coal supply agreement entered into with SouthGobi Sands LLC on 19 October 2010.
(i) Winsway Resources Holdings Private Limited ("Winsway Singapore"), Moveday Enterprises Limited ("Moveday"), a company established under the laws of the British Virgin Islands and an independent third party unconnected with the Company or our connected persons (as such term is issued under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited), and Tavan Tolgoi Trans Co., Ltd ("TTT"), a company established under the laws of Mongolia, entered into a coal supply agreement on 22 October 2010 ("TTT Coal Supply Agreement") for the purchase of up to 2,000,000 tonnes of coking coal by Winsway Singapore from TTT to be delivered within the last quarter of 2010. The TTT Coal Supply Agreement was executed pursuant to a ten-year framework agreement ("Framework Agreement") between the Company and Tavan Tolgoi Incorporate Company ("TTC"), a company established under the laws of Mongolia, dated 11 March 2010. Under the Framework Agreement the Company or its designated companies have the right to purchase coking coal from TTC or its designated companies in an amount not less than 5,000,000 tonnes a year. The place of delivery of the coking coal under the TTT Coal Supply Agreement will be the Gants Mod Sino-Mongolia border crossing. The Company will provide border crossing, coal processing, and logistical services and will mainly supply the coal to Baosteel Group in Shanghai. The terms under the TTT Coal Supply Agreement were arrived at after arm's length negotiations between the parties and were based on normal commercial terms and the current market conditions.
(ii) Winsway Singapore and an unidentified Mongolian coal producer ("Mongolian Supplier") executed a confirmation order ("Confirmation Order") on 22 October 2010 for the purchase of up to 575,000 tonnes of coking coal by Winsway Singapore from the Mongolian Supplier to be delivered within the last quarter of 2010. This Conformation Order was entered into pursuant to an existing coal supply framework agreement between Winsway Singapore and the Mongolian Supplier on 30 July 2010 as a part of the continuation of the long term business relationship between Winsway and the Mongolian Supplier, a relationship built on the foundation of mutual benefit and expected to continue in the future, with the objective to create value for both companies' shareholders and provide a platform to jointly serve Chinese steel mills. The place of delivery will be the Gants Mod Sino-Mongolia border crossing. The Company will provide border crossing, coal processing, and logistical services and will mainly supply the coal to Wuhan Steel Group in Hubei Province and Shasteel Group in Jiangsu Province. The terms of the Confirmation Letter were arrived at after arm's length negotiations between the parties and were based on normal commercial terms and the current market conditions.
(iii) Ejina Qi Haotong Energy Co., Ltd ("Ejina Qi Haotong"), a wholly owned subsidiary of the Company and an unidentified Chinese domestic coal supplier ("Chinese Supplier"), entered into a coal supply agreement ("Chinese Supplier Agreement") on 14 October 2010 for the purchase of up to 200,000 tonnes of coking coal by Ejina Qi Haotong from the Chinese Supplier sourced from Mongolia to be delivered within the last quarter of 2010. The Company will provide coal processing and logistical services and will mainly supply the coal to Baotou Steel Group in Inner Mongolia Autonomous Region. The terms of the Chinese Supplier Agreement were arrived at after arm's length negotiations between the parties and were based on normal commercial terms and the current market conditions.
Based on the new supply contracts and confirmation order detailed above, the 1,200,000 tonnes semi-soft coal supply agreement with South Gobi Sands LLC, and the existing coal supply contracts, the Company anticipates the purchase of Mongolian coking coal in the last quarter of 2010 will increase compared with the same period last year.
Alamar Resources Set To Expand Gold Assets With Mongolian Acquisition
Mogi: Alamar shares rose by as much 80% or 16c to 36c today on ASX when trading halt was lifted. Closed the day up 50% to 30c.
October 27 (Proactive Investors) Alamar Resources (ASX:ALG) has entered into a conditional agreement to acquire 100% of MRCMGL LLC (Mongolian Resource Company), a growth-oriented Mongolian based diversified resource company engaged in the acquisition, development and operation of resource properties in Mongolia.
The proposed transaction is conditional on a capital raising of not less than $5,000,000 at $0.25 per share or not less than 80% of the average market price for shares on the 5 days before lodgement of the prospectus.
…
The proposed acquisition strategy of MRC is considered in line with Alamar current strategy. MRC's major assets include up to 85% interest in the Blue Eyes Gold Project and a 90% interest in the Sujigtei Gold Project.
Other assets included in acquisition are:
- 13 exploration leases and 1 mining lease prospective for alluvial gold
- 1 exploration lease prospective for iron ore (coarse grained skarn hosted magnetite)
- 1 exploration lease prospective for thermal coal
- 240m3/hr IHC alluvial gold plant (not operational)
The company has initiated due diligence on the MRC assets, however due diligence remains ongoing.
The consideration for the acquisition is as follows:
To the Vendors (the shareholders of Mongolian Resources Corporation):
- Alamar will provide an advance of up to US$1,000,000 to continue the development of the Blue Eyes Gold Mine and provide for working capital upon the Company receiving satisfactory security for its advance and Alamar completing a placement to raise A$500,000 through the issue of 3,375,000 shares at 15 cents each (Placement). The Company has received best endeavour commitments from sophisticated investors for the full amount of the proposed placement.
- In the event the agreement to acquire MRC is terminated the advance becomes a loan and is repayable within 90 days accruing interest at the rate of 15%.
- The issue of 50,000,000 fully paid ordinary shares in Alamar upon successful due diligence, shareholder and ASX and all necessary approvals
- The issue of performance shares convertible into 50,000,000 fully paid ordinary shares in Alamar once a JORC compliant resource on MRC's projects has reached or exceeded 1,000,000 ounces of gold with at least 300,000 ounces in the Indicated category on or before 3 years from Settlement.
To the Introducers
- The issue of 5,000,000 fully paid ordinary shares in Alamar upon Settlement
Under the terms of the agreement, management changes have been proposed however not yet agreed. It is anticipated that after Settlement Alamar's board will consist of two existing Alamar directors (with two current directors to resign), two incoming director from MRC, and one independent director.
Credit Suisse 4.3%, Spearpoint Limited 6.41% Stake in Origo Partners
Mogi: OPP up by as much as 3.3% in London.
October 27 (Origo Partners Plc) The Company was notified on 26 October 2010 that, as at the same date, Credit Suisse Group AG ("Credit Suisse"), holds 13,101,379 ordinary shares in the Company ("Ordinary Shares"), representing 4.3% of the issued share capital.
….
The Company was notified on 27 October 2010 that, as at the same date, Spearpoint Limited ("Spearpoint"), within its nominee, Secure Nominees Limited, holds 19,387,740 ordinary shares in the Company ("Ordinary Shares"), representing 6.41% of the issued share capital. Of these, 16,515,157 Ordinary Shares, representing 5.5% of the issued share capital, are held on behalf of Spearpoint's customers on a discretionary managed basis. Spearpoint has a discretionary mandate over a further 4,620,768 Ordinary Shares, representing 1.52% of the issued share capital, which are not registered in its nominee.
Link to Credit Suisse holding, Spearpoint holding
World Bank Financing Agreement Of USD 30 Million Inked
October 27, Ulaanbaatar, Mongolia, /MONTSAME/ The Minister of Finance S. Bayartsogt and a new country manager of the World Bank for Mongolia Ms. Coralie Gevers signed Tuesday a financial agreement of USD 30 million. This agreement supports significant reforms implemented by the Government, which have been undertaken since the economic crisis of 2008.
The Second Phase of Development Policy Credit (DPC2), which complements the First Phase financing of USD 40 million that was approved in June 2009, aims to support the Government in its continued efforts to sustain the economic recovery and to develop a stable fiscal framework for the future. In particular, the DPC2 supports reforms in four areas--establishment of an improved fiscal policy and management; designing a social protection system that supports the poorest through economic downturns; preparation of a framework towards a sounder financial sector; and maintaining an attractive investments climate for mining.
"Great opportunities lie ahead for Mongolia and it is critical that the Government put in place, as it is doing now, a sound fiscal framework to ensure that future mining revenues advance development opportunities for all," Ms. Gevers said. "We are pleased to support them in this effort," she added.
The signing of the agreement was also the opportunity for Mr. Klaus Rohland, World Bank Country Director for China, Mongolia and Korea, to introduce Ms. Gevers, who was recently appointed the World Bank Country Manager and Resident Representative for Mongolia, to the Government.
…
SouthGobi proves its coal business in southern Mongolia, ready to push production
Company grows to 450 employees from six and to $36 million from $3 million in one year
October 26, Vancouver (The Vancouver Sun) In four years, Vancouver-based SouthGobi Resources Ltd. (HKG:1878, TSE:SGQ) has gone from being a company with six employees, a coal deposit and an unproven market to one with 450 employees pulling 1.3 million tonnes of coal out of an open pit in southern Mongolia in 2009 and selling it in China.
The company booked $36 million in revenue for 2009, up from just $3 million the previous year and none in the years prior.
That performance earned South-Gobi second spot on the list of Business BC's Top 100 fastest-growing companies.
"I think 2009, I would call a predevelopment year," South Gobi CEO Alex Molyneux said in a telephone interview from his Hong Kong office. "Although we were mining coal, [the mine was still in] the predevelopment."
Molyneux said that is because South Gobi has had to take a different path in its development in Mongolia than would be expected in North America.
The firm has proceeded on what Molyneux called a "very capital-lean" basis, spending only about $60 million to begin mining coal from its Ovoot Tolgoi project without spending heavily on infrastructure such as a handling plant or washing facility - things companies build before starting to mine in North America.
…
SouthGobi also took in a $500-million investment from the China Investment Corporation to support expansion of Ovoot Tolgoi's operations and building out the infrastructure it needs to obtain better value from all of its coal.
The Ovoot Tolgoi mine is one of three coal projects that SouthGobi owns in southern Mongolia, which produces coal from several surface seams, with its seam No. 5 boasting an average thickness of 53 metres, making it one of the deepest in the world.
The other projects on SouthGobi's property include an underground deposit in Ovoot Tolgoi and a second, Soumber deposit.
…
And now that the company has proven its business, and that it can scale it up to higher levels of production (Molyneux estimated that its fourth-quarter 2010 extraction is running at a four-to-six-million tonne annualized rate), it has begun taking the steps needed to expand.
Molyneux said that in 2009, the firm built a permanent maintenance facility and a camp for the 430 of its employees (97-per-cent of whom are Mongolian) involved in mining operations, as well as putting in orders for bigger equipment and a larger fleet.
Now in 2010, Molyneux said the company has started construction on a coal-handling facility, which it expects to complete in early 2011.
The facility will allow SouthGobi to clean ash and waste rock from its coal and allow for blending to create higher-value products.
"It's not until 2012, 2015 that we will have a full-scale wash plant, full transportation infrastructure, loading and blending facilities," Molyneux said. "By then we will have about $500 million invested."
Korea Elevator Safety Institute Bolsters Tie with Mongolia Government
October 28 (Korea JoongAng Daily) Korea Elevator Safety Institute President Kim Nam-deuk held a second meeting with Ya. Sodbaatar, director of the State Specialized Inspection Agency of Mongolia, on Oct. 26 in Seoul to further bolster collaboration between the two countries in the realm of elevator technology.
During the meeting - which was part of the Korea-Mongolia Elevator Safety Technology Exchange pact the two countries signed previously - delegates from Mongolia proposed the idea of having Korea provide technology education and support in the realm of elevator safety.
im replied that his organization will assist the country by sending a team of experts to Mongolia to help the country develop advanced elevator safety inspection technology and an overall standard.
The Korea Elevator Safety Institute signed an agreement with the State Specialized Inspection Agency of Mongolia in February 2009 to support the country's efforts to develop modern elevators and to participate in technology exchange. Since then, the organization has sent over experts to help amend existing regulations and provide continuous support.
Mongolia's government is now in the process of modifying elevator safety laws and regulations based on the model in Korea.
Meanwhile, the institute has been supporting the Korean government's efforts to expand exchange and support in the elevator technology arena across Asia, along with other countries including China and Vietnam.
Australia
Wave of selling over US recovery doubts
October 27 (AAP) Close Australian shares fell deep into the red this afternoon after a wave of selling hit the market as doubts emerged over the size of the US Federal Reserve's planned quantitative easing program.
At the close, the benchmark S&P/ASX200 index was down 39.7 points, or 0.8 per cent, at 4648.1, after earlier rising as high as 4698. The broader All Ordinaries index fell 41 points, or 0.9 per cent, to 4720.5.
Among the sectors, materials fell 1.6 per cent, energy shares dropped 1 per cent, and even financials slipped 0.1 per cent, after posting gains for the better part of the day on the back of a strong NAB result.
need2know:
- The dollar falls to 97.42 US cents
- Asian shares drop to two-week low
- Gold inches down to $US1338
- Oil slips for a third day, towards $US82
- Dow futures are 54 points lower at 11,070
Traders said the sudden market slump was sparked by an article in the Wall Street Journal saying the US Federal Reserve's asset purchase program – known as quantitative easing – will be lower than hoped for by the markets.
"It might be a touch smaller than people were thinking," said Angus Gluskie, managing director of White Funds Management. "It's not likely to be a massive."
…
Shares in ASX extended their slide over concerns the proposed merger with Singapore's exchange may not be approved by Canberra. The stock lost $1.37, or 3.5 per cent, to $37.30, following the previous day's 7.4 per cent fall.
…
Miners hit by sell-off
Among the miners, BHP Billiton fell 34 cents to $41.49, while Rio Tinto lost $1.71, or 2.03 per cent, to $82.35.
''It is a sell-off in some of the resources moving the market,'' Bell Financial's Mr Kimber said. ''That is probably currency-driven to an extent.
…
Total market turnover was 3.148 billion shares changing hands for $6.61 billion, with 434 shares up, 722 down and 346 unchanged.
Singapore Exchange's Bocker Faces Revolt on Australia
Oct. 27 (Bloomberg) -- Magnus Bocker, who stitched together eight European stock exchanges and sold them in a bidding war, is running into a wall with shareholders and politicians over his plan to acquire Australia's main bourse.
Singapore Exchange Ltd. posted its worst two-day drop in two years after Chief Executive Officer Bocker unveiled an $8 billion takeover of ASX Ltd. this week. Australian Green party leader Bob Brown said he won't support the bid and Tokyo Stock Exchange Group Inc., with a 5 percent stake in its Singapore rival, warned it will be saddled with losses.
For the 49-year-old marathoner, winning in Asia may prove harder than in Europe, where he combined companies from Lithuania to Iceland to create the region's fifth-largest exchange. JPMorgan Chase & Co., Credit Suisse Group AG and Deutsche Bank AG cut ratings on Singapore Exchange yesterday, citing regulation, debt and ASX's growth outlook.
"There are doubts that the transaction will push through," said Pearlyn Wong, an investment analyst in Singapore at Bank Julius Baer, which manages about $262 billion in client assets worldwide. "SGX is paying a steep premium for ASX and it's highly questionable if the synergies from this acquisition will materialize."
…
His record on mergers will be tested as he works to overcome regulatory hurdles and investor skepticism. Atsushi Saito, the president of the Tokyo Exchange, criticized the plan. The bourse said in June 2007 that it paid 37.4 billion yen ($457 million) for 4.99 percent of Singapore Exchange.
"It's not a good story," Saito told reporters. "Our shareholdings will be diluted, with our stake falling to around 3.1 percent. It's possible we'll have a loss of hundreds of millions of yen."
…
Misc
AC Milan Soccer School Coming to Mongolia
… Being present in Mongolia and in 10 Indonesian cities is among Milan's short-term plans.
<Mogi & Friends Fund A/C>
20% and still holding
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.
Mogi: $40K turnover. That's the more than most daily Mongolian Stock Exchange turnovers. Imagine, a single penny, no-one-heard-of, highly-speculative, no-price-sensitive-announcement-stock-in-more-than-half-a-year stock getting more trades than MSE. Where art thou London, Nasdaq or whoever it is?
Mogi
"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
Suite 906, Central Tower
Sukhbaatar District, Ulaanbaatar
Mongolia
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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