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 currently resorting to distributing them from an internet account. Thus, in replying back, please note to 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, November 2, 2010 |
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| Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
| HUN | 0.975 | -0.015 | 0.960 | 0.985 | 0.990 | 0.990 | 0.975 | 165,263 |
| VOR | 0.037 | -0.002 | 0.037 | 0.038 | 0.039 | 0.039 | 0.037 | 3,841,178 |
| ALG | 0.375 | -0.100 | 0.375 | 0.400 | 0.500 | 0.500 | 0.370 | 153,321 |
| AKM | 0.320 | 0.025 | 0.315 | 0.320 | 0.320 | 0.320 | 0.300 | 7,313,012 |
| GMM | 0.175 | 0.015 | 0.170 | 0.175 | 0.170 | 0.185 | 0.170 | 288,567 |
| LRL | 0.270 | -0.010 | 0.270 | 0.275 | 0.275 | 0.275 | 0.270 | 700,900 |
| LEI | 33.750 | -2.550 | 33.720 | 33.890 | 35.930 | 36.450 | 32.750 | 3,723,268 |
| RIO | 82.710 | -0.280 | 82.500 | 82.900 | 82.940 | 82.940 | 82.300 | 978,627 |
| BHP | 42.270 | -0.030 | 42.250 | 42.290 | 42.250 | 42.440 | 42.060 | 5,105,555 |
ASX Announcements, Yesterday, November 1, 2010
- Hunnu Coal Ltd (ASX:HUN) – September Quarterly Cash Flow, September Quarterly Activities Report, Notice under Section 708A
- Voyager Resources Ltd (ASX:VOR) - September Quarterly Cash Flow, September Quarterly Activities Report
Drilling Commences at Erdene's Zuun Mod Molybdenum Project, Program to Include Drilling of Khuvyn Khar Porphyry Copper Target
Mogi: ERD shares flat in early Tuesday trading in Toronto.
HALIFAX, NOVA SCOTIA--(Marketwire - Nov. 2, 2010) - Erdene Resource Development Corp. ("Erdene" or "Company") (TSX:ERD) today announced that a 4000-metre drilling program will commence this week on molybdenum and copper targets on the Khuvyn Khar Licence, which will include extension and confirmation drilling of Erdene's 100% owned Zuun Mod molybdenum-copper deposit and drilling of untested porphyry copper geophysical targets.
Zuun Mod Drilling
The Zuun Mod drill program is designed to more fully outline the molybdenum-copper resource in areas expected to be initially developed for mining and to expand resources in the higher grade zones in the North Racetrack deposit area. The information derived from this program will be used to define a more extensive prefeasibility drill program designed to upgrade the inferred resources to measured and indicated resource categories. The Zuun Mod deposit currently contains a National Instrument 43-101 compliant resource of 215 million pounds ("Mlbs") of molybdenum in the Measured and Indicated ("M&I") category, grading 0.054% Mo, and a further 208Mlbs in the Inferred category grading 0.051% Mo, making it one of the largest undeveloped molybdenum-copper deposits in the Asia region. Within this envelope of 0.05% Mo mineralization, are higher grade zones averaging approximately 0.07% Mo totalling 69Mlbs of molybdenum in the M&I category and 44Mlbs of molybdenum in the Inferred category with similar copper grades.
...
Khuvyn Khar Copper Prospect Drilling (at Zuun Mod)
In 2003, two priority targets were identified on the Khuvyn Khar / Zuun Mod exploration license, one of which evolved into the Zuun Mod molybdenum-copper deposit as a result of exploration by Erdene in the period 2006 to 2009. The second area, the Khuvyn Khar copper target, is located 2.5 kilometres northwest of the Zuun Mod deposit in the northern portion of a 12 kilometre annular feature defined by alteration and geochemical anomalies and referred to as the Zuun Mod porphyry complex. This prospect has received only limited exploration to date. A recently completed study by Wave Geophysics of Colorado has identified several prospective areas that will be tested by drilling in the 4th quarter of 2010.
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Ulaanbaatar Railway Head Replaced
November 2 (UB Post) Deputy Finance Minister of Mongolia T. Ochirkhuu has been appointed as new head of Mongolia-Russia Joint Venture "Ulaanbaatar Railway".
The appointment was made as result of a top management meeting of the Ulaanbaatar Railway held in Ulaanbaatar City on October 28.
Beside the meeting, the sides held official talks involving Russian Railways President Vladimir Yakunin, Mongolian Prime Minister Batbold Sukhbaatar, Mongolian Minister of Roads, Transport, Construction and City Planning Battulga Khaltmaa, and other representatives of the two countries. The talks addressed ways of improving the effectiveness of Ulaanbaatar Railway's operations, and developing the Mongolian rail network, to keep up with the development of new mines.
A range of important documents aimed at developing Ulaanbaatar Railway were signed at the meeting, in the presence of Battulga and Yakunin. At the session, a new loan provided by Russia's VTB Bank to the Ulaanbaatar Railway was announced, for the purchase of Russian-made locomotives, track machines, and equipment. The loan is guaranteed by Russian Railways. The Mongolian company will use a share of the funds to purchase 35 2TE116UM locomotives and 13 TEM18DM diesel shunting locomotives.
Another document signed here was an agreement between Ulaanbaatar Railway and Transmashholding of Russia. In line with a protocol on intent signed in October 2009 in Ulaanbaatar between the two companies, a decision was taken to develop a new mainline diesel locomotive with the designation 2TE116UM, specifically for use in elevated mountain regions with high dust levels. The first of these locomotives was delivered to Ulan Bator Railway in September 2010.
Ulaanbaatar Railway accounts for more than 60% of national goods transport. The total track length of the Ulaanbaatar Railway is 1815 km, and the company employs around 16,000 people. The common technical base with Russia, including the 1520 mm track gauge, gives Ulan Bator Railway an important geo-strategic role in providing transport-economic links with China. Russian Railways provides maximal technical support to Ulaanbaatar Railway: since 2007, 1350 goods wagons have been supplied to Mongolia, and in 2009 Russian Railways reconstructed 108 km of Ulaanbaatar Railway's track superstructure.
Russian Railways and the Mongolian Government created the Russian-Mongolian joint venture Infrastructure Development in May 2009, with the aim of implementing a large-scale project to modernize Mongolia's existing infrastructure and build rail lines to promising natural deposits. The purpose of the venture is to provide an effective platform for attracting investment in the development of Mongolia's railway network.
During 2009, the work of the joint venture included drawing up a Strategy for the Development of Ulan Bator Railway and the Construction of New Railway Infrastructure in Mongolia, based on the principals of a unified national railway network with the 1520 mm gauge standard and the formation of an effective investment scheme with the parties participating on a parity basis. Total investment in the project is estimated at $3.9 billion up to 2015.
Petro Matad delays E. Mongolia test program
Mogi: Petro Matad (AIM:MATD) shares closed 19.65% lower on Monday to 110.89p in London AIM trading. Shares nosedived, immediately following this release from the company, dropping as low as 95 pence on the day, but MATD still marks the year with a 485% gain YTD.
MATD treading
HOUSTON, Nov. 1 (Oil & Gas Journal)-- Petro Matad Ltd., Isle of Man, UK, will delay until spring 2011 a test program on Block XX in eastern Mongolia's Tamtsag basin because of winter onset after encountering hydrocarbons in all three wells drilled this year.
The company is negotiating a drilling contract that is expected to allow it to drill one and possibly two more wells through as late as mid-December 2010.
Petro Matad will set production casing at the DT-3 well, which went to 1,266 m in basement on the Davsan Tolgoi prospect on the 10,340 sq km block. It had hydrocarbon shows while drilling the primary objective Lower Tsagaantsav formation and the overlying Upper Zuunbayan formation. Both formations are Lower Cretaceous in age.
Upper Zuunbayan sandstones exhibited live oil shows at 750-765 m. Preliminary petrophysical analysis of wireline logs delineates 5.5 m of potential net pay Porosity in the net pay intervals averages 23%.
Lower Tsagaantsav sandstones had 10 m of weak live oil shows at 1,005-1,015 m with elevated pentane levels at 945-1,216 m.
Preliminary petrophysical analysis of wireline logs indicate that the Lower Tsagaantsav sandstones include more than 50 m of high-quality reservoir rocks with average porosities above 20% that are evenly distributed over the 281-m gross interval at 935-1,216 m. However, calculated hydrocarbon saturations are low throughout, indicating that the Tsagaantsav is a poor candidate for testing at this location.
DT-3 was designed to test the continuity of hydrocarbons in Tsagaantsav reservoirs between the area of the earlier DT-1 and DT-2 test wells, about 8 km northeast. Comparison of the high calculated hydrocarbon saturations at DT-1 and DT-2 with low saturations at DT-3 indicate that DT-3 is in a separate fluid compartment from DT-1 and DT-2. The extent of each compartment will be evaluated by remapping the 3D seismic survey.
DT-3 was also designed to provide a wider sampling of Tsagaantsav reservoir quality along Greater Davsan Tolgoi prospect. The actual 50 m or more of reservoir quality rock encountered at DT-3 compares favorably with the assumed 10.35 m net reservoir thickness that formed the basis of the 2009 mean recoverable resource estimate of 121.5 million bbl of oil for the prospect.
The next step in the process is compilation and assessment of drilling data, including reprocessing and remapping 3D seismic survey over Davsan Tolgoi to update the resource and plan 2011 appraisal drilling. The company is also evaluating tenders for 2D and 3D seismic surveys on Block XX with a view to shooting during winter.
In Blocks IV and V, which total 71,040 sq km in central Mongolia, the 4,000-station gravity infill survey has just been completed, and the data will be integrated with 2D seismic survey now being processed.
Link to the original announcement:
- Block XX Exploration Drilling Update, Petro Matad Ltd., November 1, 2010
Hunnu Coal issues Tranche 1 Placement Shares
November 1 (Mogi) Hunnu Coal Ltd (ASX:HUN) announced this morning that it had issued 24 million Tranche 1 Placement shares on Wednesday, October 27 to institutional and sophisticated investors as part of the A$40M Placement announced by the company on October 19.
The remaining 26 million shares are subject to shareholder approval. Hunnu Coal hasn't officially announcemed the date of the shareholder meeting, but it will be held "as soon as practicable".
CPS Securities and Azure Capital were appointed Joint Lead Managers on this placement and has previously performed the same roles in Hunnu's February 2010 IPO, raising A$20M.
NAR Issues US$10 Million and US$3 Million in Convertible Bonds
Hong Kong, Nov 1, 2010 - (ACN Newswire) - Iron and alluvial gold miner, North Asia Resources Holdings Limited ("NAR" or the "Company") (stock code: 00061.hk), today announced that on 29 October 2010 it has entered into a US$10,000,000 Convertible Bonds ("US$10M CB") Subscription Agreement with Business Ally Investments Limited ("Business Ally") and a US$3,000,000 Convertible Bonds ("US$3M CB") Subscription Agreement with Grandwin Enterprises Limited ("Grandwin Enterprises"). Business Ally is a wholly-owned subsidiary of CCB International Asset Management Limited which is in turn wholly-owned by CCB International (Holdings) Limited ("CCBI") whereas the ultimate beneficial owner of Grandwin Enterprises is Mr. Leung Pak To Francis.
The US$10M CB Subscription Agreement
The US$10,000,000 principal amount of the Convertible Bonds has been subscribed by Business Ally on 29 October 2010, which would be due three years from the issue date. The issue price of each Conversion Share is HK$1.70, representing a premium of approximately 24.09% over the closing price of HK$1.37 per share as quoted on the Stock Exchange as at 29 October 2010. The net price to the Company of each Conversion Share is approximately HK$1.59.
Assuming full conversion of the US$10,000,000 Convertible Bonds, a total of 45,588,235 Conversion Shares will be issued by the Company, representing approximately 5.45% of the Company's then existing issued share capital of 836,658,340 shares (inclusive of the US$3,000,000 Conversion Shares to be issued upon full conversion of the US$3,000,000 Convertible Bonds); and approximately 5.17% of the Company's issued share capital as enlarged by the issue of the Conversion Shares upon full conversion of the Convertible Bonds.
The US$3M CB Subscription Agreement
The US$3,000,000 principal amount of the Convertible Bonds has been subscribed by Grandwin Enterprises on 29 October 2010. The Convertible Bonds would be due three years from the issue date. The initial conversion price of each Conversion Share is HK$1.70, representing a premium of approximately 24.09% over the closing price of HK$1.37 per Share as quoted on the Stock Exchange as at 29 October 2010. The net price to the Company of each Conversion Share is approximately HK$1.54.
Assuming the US$3,000,000 Convertible Bonds are fully converted, a total of 13,676,470 Conversion Shares will be issued by the Company, representing approximately 1.66% of the Company's existing issued share capital of 822,981,870 shares; and approximately 1.63% of the Company's issued share capital as enlarged by the issue of the Conversion Shares upon full conversion.
The estimated net proceeds from the issue of the US$10M CB and US$3M CB of approximately HK$72.5 million and HK$21 million respectively will be used for the general working capital of the Group, the acquisition of iron concessions in Mongolia and/or other possible acquisitions in the future.
Mr. Joseph King, Chairman of NAR, said, 'The subscription agreements with quality strategic investors like CCBI and Mr. Francis Leung illustrate their confidence in the growing business and affirmation on the future prospects of the Company. This move will broaden our capital base immediately by providing additional funding for the Group's further development and also strengthening our competitiveness. We plan to use the funds as our working capital and for the acquisition of iron concessions in Mongolia. We would also keep an eye on other possible acquisitions in the future to maximise the shareholders' returns."
Winsway Announces End of Stabilisation Actions
November 1 (Winsway (HKG:1733)) The Company announces that the stabilisation period in connection with the Global Offering ended on 30 October 2010.
The stabilising actions undertaken during the stabilisation period were:
1. over-allocations of an aggregate of 148,500,000 Shares in the International Placing;
2. the borrowing of an aggregate of 148,500,000 Shares from Winsway Resources Holdings Limited solely to cover over-allocations in the International Placing;
3. the purchase of a total of 64,474,000 Shares in the price range of HK$3.36 to HK$3.70 per Share on the market, representing approximately 6.51% of the initial number of Offer Shares available under the Global Offering before any exercise of the Over-allotment Option; and
4. the partial exercise of the Over-allotment Option by Goldman Sachs (Asia) L.L.C. (the "Stabilising Manager") on behalf of the International Underwriters on 30 October 2010 in respect of an aggregate of 84,026,000 Shares.
…
PEPSI COLA AND COCA COLA'S EPIC RIVALRY CHOOSE MONGOLIA AS THEIR LATEST BATTLEFIELD
THE BATTLE FOR SOFT DRINK SUPREMACY INTENSIFIES IN MONGOLIA
COCA COLA SOFT DRINKS REIGNED SUPREME IN MONGOLIA UNTIL NOW, PEPSI COLA HAS JUST DECIDED TO TAKE ON THE GIANT COCA COLA FIRM ON ITS OWN GROUND IN MONGOLIA.
November 1 (M.A.D. News) MCS entered into an initial agreement with Coca Cola in 2002 to open its first bottling plant, the product was an enormous success and thus a new 22$ million MCS Coca Cola Bottling plant was opened in 2008 on the outskirts of Ulaanbaatar city. Today, over 80 Coca Cola beverages are sold per Mongolian citizen per year.
Up until now, Coca Cola's arch rivals, PepsiCo has been surprisingly absent from the Mongolian market but this is all set to change as an agreement as recently been reached between PepsiCo International and GN Beverages to produce PepsiCo's beverages in country. This will allow PepsiCo to compete on a more equal footing with Coca Cola products as it will be able to reduce its reliance on the importation of products and minimize costs by producing within Ulaanbaatar.
PepsiCo International is the second largest food and beverage company in the world so it is only natural for it to seek new markets and establish themselves in what is now thought to be one of the fastest growing economies of the world. Even tough Mongolia has a very small population, its income per capita is fast rising and there is a growing thirst to consume new products.
The agreement will provide for the bottling and manufacturing in Mongolia of the Pepsi, Miranda and 7-Up brands. GN Beverages has acquired the franchise rights to special recipes for these internationally popular beverages and also the special production techniques that give them their unique flavor.
GN Beverages has over 150 employees and its fully automated plant works with the most modern German equipment. The company's laboratory uses Japanese technology for tests to ensure quality control. This new investment will allow GN Beverages to enter into competition against MCS thus diversifying the market as well as creating new jobs and stimulating the economy.
Of course, MCS being a much larger company that also controls a number of bars, restaurants and retail outlets, PepsiCo will no doubt struggle to make significant headway into the market but producing in Mongolia is a good start.
FT: Mongolian Sovereign Bond Defaulted Once Since 1997
November 2 (Mogi) Financial Times, in an article dating November 1, about the unlikeliness of eurozone sovereigns defaulting, reports that Mongolia defaulted on its sovereign bond once since 1997. To the best of my knowledge Mongolia is yet to issue a sovereign bond internationally. Please correct me if I'm wrong.
State Property Chief: MSE Partner Selection "In The Near Future", Mongol Post 30% IPO Ready, Our Russian Partners want Khan Resources Out
November 2 (news.mn) The State Property Committee (SPC) used to be called the Commission of Property Privatization and while that has been its principal function even after reorganization, in recent months the SPC has found itself saddled with new responsibilities. According to the chief of the committee, Dulam Sugar, these include better management of state owned companies, so that they do not run at loss, preparing to sell their shares in the capital market, arranging for public private partnership, and implementation of the Concession Law.
Sugar said deciding on a foreign company to restructure the Mongolian Stock Exchange is not easy as it must primarily serve Mongolia's long-term interests. All bids are being reviewed, and he was hopeful that a partner team will be announced "in the near future". It is not enough that some big Mongolian companies have an IPO in a foreign market. "Strategic deposits will bring investment to our country, but it is as important to get shares of general domestic companies sold to Mongolians in the country," Mr. Sugar said, revealing that Mongol Post is ready to offer 30% of its shares to the market.
Calling the dispute around Khan Resources "a complicated situation", Sugar said Mongolia needs foreign help to mine and process the uranium it has and Russia is a natural choice, as "it is closest to us, and has the right technology and long experience". He said the SPC planned to "involve Toshiba and also the Canadians, but our Russian partner wants Canadian companies out so that Russia and Mongolia can cooperate 51:49," he said.
Credit Information Bureau signs "milestone agreement" with US firm
November 2 (news.mn) Dun & Bradstreet, USA, and the Credit Information Bureau LLC (CIB), Mongolia, have signed a Memorandum of Understanding (MoU) to establish the first private credit information service provider in Ulaanbaatar. The joint venture company (JVC) will initially provide consumer and commercial credit information services but intends to add other credit risk management services in the Mongolian market.
CIB Chairman Bold said: "The signing of the MoU with D&B culminates three years of efforts of banks and non-bank financial institutions in Mongolia to build a high-class financial institution, the CIB of Mongolia. The agreement is a milestone in the process."
The Credit Information Bureau LLC, Mongolia was established in 2009 by the Mongolian Bankers Association with support from the USAID-funded Economic Policy Reform and Competitiveness (USAID/EPRC) and the International Finance Corporation (IFC). CIB selected D&B as a strategic and equity partner from a field of six highly qualified bidders through a competitive tender process.
The new joint venture company will provide both credit information services and other much needed credit risk management services in the Mongolian market. Effective information sharing is essential in the credit market, especially for microfinance development and the stability of the financial sector. The company will use D&B's state of the art credit bureau software to support the operation of the JVC.
Dun & Bradstreet is the world's leading source of commercial information and insight on businesses. Its commercial database contains more than 170 million business records.
FACTBOX-Key political risks to watch in Mongolia
BEIJING Nov 1 (Reuters) - Landlocked Mongolia sits on vast quantities of untapped mineral wealth and analysts say it could be one of the fastest growing economies of the next decade, as well as a key investment target for global mining giants.
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Australia
Shares end flat, but Leighton Drops on Profit Warning
Close The Australian sharemarket has closed little changed for the day after the surprise move by the Reserve Bank to lift interest rates.
The benchmark S&P/ASX200 index rose 2.9 points, or 0.1 per cent, to 4701.4, while the broader All Ordinaries index gained 2.4 points, or 0.1 per cent, to 4773.3.
Among the sectors, financials rose 0.5 per cent, while materials were off 0.2 per cent and gold shares dropped 0.7 per cent.
The dollar soared on the RBA's unexpected decision, adding one US cent to close locally at 99.8 US cents.
The major miner's closed mostly lower. BHP Billiton lost 3 cents to $42.27 and Rio Tinto ended down 28 cents at $82.71. But Fortescue Metals was 11 cents higher at $6.42.
Leighton hit by profit warning
Leighton Holdings was the worst performer on the S&P/ASX 50, after it said it would downgrade first quarter profit by $85 million due to problems associated with the Brisbane Airport Link project, and effect of the strong Australian dollar on earnings. Leighton ended down $2.55, or 7 per cent, at $33.75.
…
Preliminary national turnover was 1.71 billion shares worth $3.40 billion, with 491 stocks up, 561 down and 348 unchanged.
RBA sends $A above parity
November 3 (BusinessDay.com.au) AUSTRALIA'S dollar pushed through parity with its US counterpart for the second time in three weeks after a shock lift in rates by the Reserve Bank that was super-sized by one of the country's biggest lenders.
The RBA's decision to raise the cash rate by a quarter percentage point to 4.75 per cent prompted the Australian dollar to leap immediately by nearly US1¢.
The dollar climbed further after overseas trade began, reaching $US1.0013. It was the highest price since the dollar was floated in 1983.
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US
Wall St jumps as Republican gains expected
November 2, 10:28 EDT (Reuters) - Wall Street rose firmly at the open on Tuesday as investors anticipated huge gains by Republicans in the midterm elections, an outcome that is likely to boost stocks and further fuel risk appetite.
…
The Dow Jones industrial average was up 78.10 points, or 0.70 percent, at 11,202.72. The Standard & Poor's 500 Index added 8.66 points, or 0.73 percent, at 1,193.04. The Nasdaq Composite Index jumped 22.21 points, or 0.89 percent, at 2,527.05.
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<Mogi & Friends Fund A/C>
25%
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: I was thinking, what if I had sold at 30% and bought back at 20%, but then I remembered my fund is a teeny tiny fund, and would've probably lost money on the commissions.
But then there's always the possibility you could dump it at 25% and put it in a different, a more 'livelier' so to say stock. But then again, you would've gained not much out of 25% when, again I'm reminded, it's a teeny tiny fund. Well, for me, this is the fun of it. Start small, dream big!!!
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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