Tuesday, December 14, 2010

[cpsinewswire] [CPSI NewsWire, Tuesday, December 14, 2010]

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 or +976-99996779.

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Close: Mongolia Related ASX Listed Companies, December 14, 2010 




$ +/-








 1.195  Down









 0.036  Down









 0.360  No change









 0.495  Down









 0.105  Down









 0.265  Up









 0.475  Up









   No change









 33.620  Down









 87.900  Up









 45.650  Up











Ivanhoe approves 2011 capital outlay for Oyu Tolgoi

* Says board has approved $2.3 bln capex budget for 2011

* 2011 to be peak yr for construction work at Oyu Tolgoi

TORONTO Dec 13 (Reuters) - Ivanhoe Mines (IVN.TO) said on Monday its board has approved a $2.3 billion capital outlay in 2011 to develop the first phase of its massive Oyu Tolgoi copper and gold project in southern Mongolia.

Ivanhoe, led by mining financier and colorful dealmaker Robert Friedland, said 2011 will be the peak year for construction at Oyu Tolgoi -- the mine is expected to begin initial production in 2012.

The company projected capital required for phase one from Jan. 1, 2011, to the commissioning of the ore processing plant in the second half of 2012 at $3.5 billion. It expects to spend an additional $1 billion on the project between commissioning and commercial production, expected to begin in the first half of 2013. 

Link to article

Link to company news release



Ivanhoe Mines upgraded to Buy (by Desjardins)

December 13 (Financial Post) Ivanhoe Mines Ltd. was upgraded to Buy from Hold at Desjardins Securities following a new agreement with Rio Tinto to fund the Oyu Tolgoi mine.

Analyst John Redstone also hiked his price target on Ivanhoe shares to $29.30 from $29.15 after using Desjardins’ long-term gold price of US$1,000 per ounce in his net asset value estimate for the Mongolia-based copper-gold project.

He also estimates that Ivanhoe will be able to raise approximately US$1.2-billion through a global rights issue. That assumes 42 million shares (600 million currently) will be issued at a price of roughly US$29 per share, while actual pricing is expected to take place in the first quarter of 2011.

The deal for further funding of Oyu Tolgoi will see Rio Tinto immediately exercise US$300-million of warrants, purchase 20 million Ivanhoe shares at market price from CEO Robert Friedland and Citigroup, and see its ownership limit in the company move to 49% (until Jan. 28, 2012). Rio Tinto will also provide Ivanhoe with about US$1.8-billion in interim financing and assume management of the project.

This should increase the pool of development capital available to Ivanhoe to approximately US$6.5-billion, Mr. Redstone told clients. He noted that roughly US$1.4-billion will have been invested in the mine by the end of 2010, while total capital expenditures for phase one of production will reach roughly US$6-billion.

“This is good news for Ivanhoe and is reflective of its partner’s commitment to the project,” he said.

The analyst believes the mine will achieve commercial production in 2014 and eventually reach capacity of 900,000 ounces of gold annually.

Link to article



ADB Funds Logistics Center (in Zamyn Uud) to Help Mongolia Expand, Speed Up Trade

December 14 (The FINANCIAL) -- Mongolia with support from the Asian Development Bank (ADB) will build a state-of-the-art road/rail linked logistics facility that will help expand and speed up trade, and increase the landlocked country's global competitiveness.

ADB's Board of Directors approved loan and grant assistance of $45 million equivalent for the Regional Logistic Development Project, which will put up a container terminal with road and rail links in Zamyn Uud, a poor, isolated desert area on the southeast border with the People's Republic of China (PRC).

"Historically Mongolia has been a north-south land bridge for goods and people moving between the PRC and the Russian Federation and on to Europe, and developing a modern and efficient logistics center will reduce costs for exporters and importers and promote international and regional trade," said Manmohan Parkash, Advisor (Knowledge Management and Capacity Development) in ADB's East Asia Department.

In recent years, strong economic growth has seen Mongolia's trade volumes rise sharply with more than 80% of imports now coming from the PRC, via Zamyn Uud, while the bulk of exports also pass through the same border point on the way to Tianjin port in the PRC. The growth in traffic has sharply outstripped existing facilities, resulting in lengthy delays in trade and traffic movements, with up to 50 to 60 days needed to get shipments to the capital, Ulaanbaatar. With the discovery of large reserves of coal and minerals destined for markets in the PRC, the need to upgrade and modernize the crossing point has become acute.

According to ADB, the new terminal will have modern customs and quarantine facilities and road and rail access which will reduce transit times, expand capacity and improve staff productivity. Management of the facility will be contracted out to a private operator. ADB will also provide training and other support to government staff engaged in implementing and overseeing the project.

ADB's assistance will make up almost 63% of the total project cost of about $71.6 million. It will include a 32-year loan of $40 million from its concessional Asian Development Fund (ADF) with an 8-year grace period carrying an annual interest charge of 1%, rising to 1.5% for the balance of the term. It is also extending a grant of $5 million from the ADF.

The Government of Mongolia will provide the remaining $26.6 million. The Ministry of Road, Transportation, Construction and Urban Development is the executing agency for the project which is due for completion in December 2015.

Link to article



Russia’s Udokan (copper) field development starting in 2012 (could export to Mongolia)

MOSCOW, Dec 13 (PRIME-TASS) -- The development of Russia’s Udokan copper field is expected to start in 2012, Sergei Chemezov, CEO of state industrial conglomerate Rostekhnologii, said Monday at a meeting with Mongolian businesspeople.

The field is developed by Rostekhnologii.

The designing of production facilities is to be completed in 2011, he said.

Some of the copper concentrate produced at the field may be exported to Mongolia, he said.

The Udokan deposit in the Zabaikalsky Region is one of the world’s largest undeveloped copper deposits, with 1.31 billion tonnes of mineable ore and an estimated 19.7 million tonnes of copper at an ore grade of 1.51%.

Link to article




Miners nudge stocks to third day of gains

December 14 (AAP) The Australian stock market ended higher for a third straight day as gains by miners outweighed weaker consumer stocks and banks.

The benchmark S&P/ASX200 index closed up 9.8 points, or 0.2 per cent, at 4,766.9 points, while the broader All Ordinaries index rose 10.6 points, or 0.2 per cent, to 4,851.8.

Among the sectors, materials jumped 0.9 per cent, gold shares rallied 1.6 per cent, while financials shed 0.1 per cent and consumer discretionary stocks lost 0.5 per cent.

- A$ was hovering at 99.5 US cents 
Asian stocks advanced on China hopes
Oil was steady at $US88 a barrel
Gold rose $US7 to $US1402 an ounce
- Dow futures were down 11 points at 11,355

The Australian dollar jumped more than 1 US cent overnight and was this afternoon trading at 99.5 US cents, up from 98.54 US cents at yesterday's close. It was also buying 74.3 euro cents, 62.7 pence and 83.1 yen.

Miners advance

Major resources stocks were stronger, with BHP Billiton up 21 cents at $45.65, Rio Tinto firming 13 cents ao $87.90 and Woodside Petroleum advanced strongly, adding 61 cents, or 1.43 per cent, to $43.36.

Mr Hancock said better commodities prices overnight supported the materials and energy sectors, with copper surging more than two per cent, gold up one per cent and the Australian dollar higher in offshore markets.    

Preliminary national turnover reached 2.59 billion shares, worth $4.51 billion, with 583 stocks up, 573 down and 360 unchanged. 

On the ASX 24, the December share price index futures contract was up 18 points at 4,778 points, with 108,098 contracts traded, a day ahead of the contract’s expiry.

Link to article


<Mogi & Friends Fund A/C>

Haranga Comes to Save the Day

Mogi & Friends Fund is a tiny fund of A$21.8K I created with a few friends to put my own (and a few friends’) money where my mouth (just mine) is.

Haranga eased on Monday and gained slightly today with the Fund’s overall return today at 72%.



·         I personally and through my “Mogi & Friends Fund” hold 75,000 HAR shares in aggregate.

·         Jason Peterson, CPS Securities Director, holds shares (approx. 6,500,000) and options (1,000,000) in HAR.

·         CPS holds 500,000 options in HAR for corporate advice provided to HAR – Jason Peterson is a 33% shareholder in CPS.

·         CPS and CPSI directors and employees hold shares in HAR and may buy and sell these shares as and when they see fit.

·         Jason Peterson is a non-executive director of HAR but not involved in the day to day running of HAR.

·         CPS has received an IPO management fee of $250,000 and a 5% fee for any funds placed to its clients under the prospectus.

·         HAR has paid for Jason Peterson’s travel and accommodation expenses to and in Mongolia – this must be disclosed as a soft dollar commission.

·         Please refer to the prospectus for further disclosures.



"Mogi" Munkhdul Badral

Executive Director

CPS International LLC

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Mobile: +976-99996779



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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 or +976-99996779.


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