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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Close: Mongolia Related ASX Listed Companies, February 21, 2010 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.120 | -0.005 | 0.115 | 0.120 | 0.125 | 0.125 | 0.115 | 16,536,888 | |
1.205 | -0.015 | 1.200 | 1.205 | 1.240 | 1.270 | 1.200 | 2,196,747 | |
0.615 | 0.035 | 0.600 | 0.620 | 0.610 | 0.620 | 0.600 | 335,898 | |
0.710 | 0.000 | 0.700 | 0.710 | 0.715 | 0.725 | 0.690 | 1,507,068 | |
0.520 | 0.020 | 0.520 | 0.540 | 0.520 | 0.520 | 0.520 | 5,000 | |
0.027 | 0.001 | 0.027 | 0.028 | 0.027 | 0.028 | 0.027 | 1,088,817 | |
0.011 | 0.001 | 0.010 | 0.011 | 0.011 | 0.011 | 0.011 | 500,000 | |
0.135 | -0.005 | 0.135 | 0.145 | 0.140 | 0.145 | 0.135 | 107,000 | |
0.330 | -0.025 | 0.330 | 0.340 | 0.340 | 0.340 | 0.320 | 933,807 | |
0.615 | -0.025 | 0.615 | 0.635 | 0.635 | 0.635 | 0.615 | 1,020,924 | |
31.070 | -0.300 | 31.060 | 31.200 | 31.650 | 31.700 | 31.030 | 1,058,847 | |
86.140 | -1.470 | 86.110 | 86.190 | 86.380 | 86.420 | 85.910 | 2,899,684 | |
45.850 | -0.710 | 45.750 | 45.900 | 45.610 | 45.850 | 45.500 | 11,795,873 | |
Source: asx.com.au
LICENSE GRANTED TO BUILD RAILWAY
February 21, Ulaanbaatar, Mongolia /MONTSAME/ The head of Railway authority B. Batbold has handed to the executive director “Mongolian railway” state-owned company B. Batzaya has received a certificate to build basic structure of 1100 km long railway from Dalanzadgad to Choibalsan.
Specialists claims that it is of importance for the Mongolian economy to built railway line in the rout of Dalanzadgad-Tavantolgoi-Tsagaansuvarga-Zuunbayan-Sainshand-Baruun Urt-Khoot-Choibalsan. Thanks to this line, an opportunity opens up for landlocked Mongolia to export its mining products to Russia and third countries via Far East port in Russia.
Professional companies will start constructing railway in the first half of this year. As an owner of the special license, the Mongolian railway state-owned company will participate by announcing tenders on railway construction and ordering construction works.
“Mongolian railway” was established in accordance with an government resolution in 2008. The company serves to build and exploit the basic structures of railway, to run transportation activities, to produce, assemble, repair rolling-stock, to purchase with own funds, own, rent out locomotives, carriages, other objects.
Mongolia seeks help sharing wealth of its mining boom
February 21 (Sydney Morning Herald) THE Mongolian Prime Minister wants Australia to be a ''third neighbour'' that can help develop his country's massive resource deposits and balance its strategic and economic vulnerability to China.
The China-driven resources boom is hoisting Mongolia's traditionally nomadic people from subsistence living towards what some say could be a material standard of living equivalent to oil-rich Arab states.
While many nations have revealed anxieties about China's political and economic power, few are as close and economically dependent as Mongolia and none has taken such drastic steps to hedge their interests.
Last year the parliament of the fledgling democracy legislated to approve construction of a Russian-gauge railway line that will haul coal nearly 7000 kilometres to Russia's Pacific coast, rather than a wider Chinese-gauge line less than 200 kilometres to the Chinese border.
Mongolian sources said the announcement had led China's Minister for Railways, Liu Zhijun, to unofficially threaten to cut off all infrastructure co-operation, before Mr Liu was detained for corruption a week ago.
Mongolia's Prime Minister, Sukhbaataryn Batbold, formerly a successful businessman, will make new overtures to the Prime Minister, Julia Gillard, and Australian corporate leaders today. ''We have a concept of a 'third neighbour' and we'd like to see a balance,'' he told the Herald in an interview in Ulan Bator.
''We regard China as an important partner but equally importantly we'd like to have other countries represented in Mongolia in a more expansive way.''
Several senior Mongolian officials told the Herald of the public pressure they face to resist Chinese influence. ''When you are a small country and they are a giant, even when they try to stroke you it can hurt,'' said one.
The International Monetary Fund expects Mongolia's economy to grow 10 per cent this year. Its main sharemarket index has more than doubled in the past six weeks. But corruption is a challenge and democratic and free market institutions have had only two decades to develop after its former patron, the Soviet Union, collapsed.
Mongolia's young and internationally educated leaders say they are in a race to consolidate democracy, redistribute wealth and nurture other sectors of the economy before billions of dollars in resource revenue begin to flow. ''Now it's time to raise the sophistication of the institutions of democracy and civil society and basic economic institutions,'' Mr Batbold said.
Today he will visit the Australian Stock Exchange which, he says, should play a larger role in raising capital for junior Mongolian companies. He wants to adapt Australia's experience in privatising Telstra to issue resource company shares to every citizen. He would also like to see Australia establish an embassy in Mongolia, extend co-operation on agriculture and deepen a scholarship program that has educated several ''Mozzies'' - Mongolian alumni from Australian universities - who have gone on to leadership roles.
Companies that stand to benefit include Rio Tinto, Leightons and possibly Fortescue, whose embattled chief executive Andrew Forrest is scheduled to meet Mr Batbold in Sydney today.
Mongolia to pick banks for mega coal IPO by end Feb
* Mongolia holds world's largest untapped coal deposit
* Economy could be boosted 15 percent by 2015
SINGAPORE, Feb 18 (Reuters) - Mongolia will announce by the end of the month the banks to manage a lucrative IPO for the world's largest untapped coking coal deposit, its prime minister said on Friday.
More than 150 bankers from a dozen Wall Street, European and Asia-Pacific investment banks have made pitches to the Mongolian government to win the coveted underwriting mandate for the Tavan Tolgoi coal mine.
Investment bankers who took part in the pitching process said this week the size of the offering could range from $1.5 billion to $5 billion, depending on timing. [ID:nTOE71F02S]
"I understand the (IPO offering) will be substantial," said Sukhbaatar Batbold, who was in Singapore attending a lecture at the National University of Singapore.
"(Choosing the banks) will be a very open, competitive process which will be done by the end of this month. I have no involvement in this process,"
Development of the Tavan Tolgoi coal mine, estimated to house a total of 6 billion tonnes of coal reserves, could boost its economy by as much as 15 percent by 2015 and double per capita income, the prime minister said.
Mongolia sits on vast quantities of untapped mineral wealth. 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.
"I was very excited to hear the top 55 financial institutions were in Mongolia a couple weeks ago with interest to participate in this specific coking coal IPO," he said.
At up to $5 billion, the deal is not only fairly big in terms of fees, but also has a lot of prestige riding on it. It would be the largest such offering to come from a hot frontier market where similar deals are expected to follow.
Tavan Tolgoi is 400 km (250 miles) from the nearest railway line and lacks infrastructure and power, which has held up development and allowed only very limited production.
Fists fly in fight to mine Mongolia
MONGOLIA is poised to name the banks that will underwrite the flotation of the world's largest untapped seam of coking coal - and the proposed listing has launched rival financiers on a sub-zero, testosterone-charged scramble for the wealth of Ulan Bator.
February 21 (The Times) The process has included an ego-fuelled brawl in an Irish-themed bar in, of all places, the Mongolian capital as bankers punctuated their pitch documents with their fists.
Some of those involved have described the process as "one of the most aggressive, ill-tempered competitions in recent memory". The initial public offering, billed as "transformational" for the three million citizens of Mongolia, comes as natural disasters in Australia and relentless Chinese demand have triggered a sharp rise in global coal prices.
The listing of Erdenes Tavan Tolgoi on either or both the Hong Kong and London exchanges may raise as much as $US5 billion and could value the company at more than $US15bn.
Propelling the furious contest is the promise of a slice of the action in Mongolia, the resources-heavy country whose proximity to China could make it the fastest-growing Asian economy of the next decade.
The Mongolian authorities are expected to announce their decision within the next few days, possibly offering roles to as many as four banks. Analysts say that the success of the listing implies a potentially huge flow of other business for bankers as Mongolia attracts investment and develops infrastructure to support its mineral ambitions.
One of the weaknesses of the Tavan Tolgoi deposit is that it lies about 400km from the nearest railway line, an isolation that can be addressed only by raising capital.
Benchmark prices for coking coal used in steel blast furnaces are 50 per cent higher than they were a year ago and have given Chinese coal producers a spectacular run of profitability. Even if prices stabilise, Mongolia believes that the six billion tonnes of coal beneath Tavan Tolgoi could double GDP by 2015.
Over the past fortnight, teams from more than 20 global investment banks, including JP Morgan, Deutsche Bank, Morgan Stanley and Goldman Sachs, have descended on Mongolia's frozen capital to make their pitch.
Private Mongolian companies have listed shares in Hong Kong, but Tavan Tolgoi is a government sale and is invested with huge political significance.
While the government will retain a 51 per cent stake in the holding company, and 30 per cent will be offered to global investors, the plan is to distribute 10 per cent of the shares to every Mongolian and the remainder to local companies. If the logistics of that distribution are managed well, the deal could mark a turning point in dragging the country from poverty, analysts say.
The deal is substantial by any standard, but the real prize lies in the kudos of receiving the official nod, which could lead to mandates for other deals in the private and public sectors.
Mongolia gears up for mining bonanza
The potential is huge, writes John Garnaut in Tavan Tolgoi.
February 21 (Sydney Morning Herald) Days after the Rio Tinto executive, Stern Hu, was arrested in Shanghai, the company's chief executive, Tom Albanese, was driven in a small convoy of Land Cruisers through drizzling rain to the heart of Mongolia's annual Naadam festival.
Hundreds of seven- and eight year-old boys were racing horses over distances of up to 30 kilometres, while spectators lined up on one side of the finish line and horse owners mingled in their yurts on the other. Albanese was late, so there were no seats in the stand, and he found himself as guest of honour in somebody's yurt.
There are conflicting accounts about who was proposing the toasts and why Albanese stayed in Mongolia as long as he did - opting to return to London via Seoul rather than Beijing - but nobody disputes that he became thoroughly acquainted with Mongolia's famous vodka and its notorious fermented horse milk, aryag. Those festivities lasted for two full days.
''This is my first opportunity to relax and my cell phone doesn't work out here,'' Albanese told his host and friend of 30 years, Edward Rochette, who married into one of Mongolia's premier horse breeding families. ''Let's just say he had an opportunity to enjoy himself and let his hair down,'' says Rochette.
When Albanese stopped for his drink at Ulan Bator, in July 2009, the Oyu Tolgoi copper and gold project was still an idea stuck in the Mongolian bureaucracy and Mongolia's main share index was trapped beneath 5000.
But months later the Mongolian government inked the Oyu Tolgoi investment agreement. And last year the agreement officially commenced, construction began, international money began pouring in and Mongolia's sharemarket index more than doubled to become the best performer in the world.
In the first six weeks of this year the index has doubled again - hitting 29,550 on Friday - and the International Monetary Fund predicts the Mongolian economy will this year grow faster than China's. Indeed, it would be hard not to grow at double digits given that construction of Oyu Tolgoi is already generating about one-third of the country's GDP, and the mine's exports will contribute a similar proportion when they come on stream from late next year.
''We're spending about $7 million a day, which is kind of awesome,'' says Andrew Harding, who heads Rio Tinto's copper division and oversees the Oyu Tolgoi project.
Oyu Tolgoi may be set to become one of the world's top three copper mines in one of the world's smallest economies and located just across the border from the world's biggest copper consumer.
But the story has already been relegated to the bottom of the nation's business pages. That's because its Gobi Desert neighbour, Tavan Tolgoi - a coal project - is getting off the ground. It is the world's second largest coal deposit, after China's Shengli.
The government has been weighing its options on how to develop and structure the mine and investment bankers have been swarming through Ulan Bator hoping for a piece of the deal. ''We had the top 55 international banking institutions here two weeks ago,'' says the Mongolian Prime Minister, Sukhbaataryn Batbold, in an interview at his Ulan Bator residence on the eve of this week's visit to Australia. ''Now it's time to raise the sophistication of the institutions of democracy and civil society and basic economic institutions including the stock exchange.''
Batbold, Mongolia's richest man, is one of several young and capable Mongolian leaders who do not need reminding that the world is littered with energy-rich dictatorships and failing democracies.
''Many investment banks believe the economy will double every three years,'' says Gankhuyag Chuluun, 36, the vice minister for finance, who is advising Batbold on structuring the Tavan Tolgoi deal. ''We need to shovel coal across the border and turn Mongolia's 2.7 million people into dollar millionaires.
''If we really want double digit growth from this year then we need to continue educating people and policy makers about the dangers of resource dependency,'' he says.
And to use the resources, he says, the country first needs to unlock its infrastructure bottlenecks.
Down at Tavan Tolgoi, where temperatures sometimes dip as low as minus 50 degrees, miners are just beginning to scratch the surface of 6.5 billion tonnes of high-grade coal - equivalent to 2400 tonnes for every Mongolian. A small pocket of the vast reserve has been set aside for the Mongolian Mining Corporation and its subsidiary, Energy Resources.
The mining contract has been given to the Australian company Leighton and the site looks like any world-class operation. The pit is two kilometres long and 50 metres deep and may one day extend as far as 10 kilometres and 350 metres underground. They are currently shovelling the ''No. 3'' seam of high grade coking coal, which is between 9 and 12 metres thick and begins just 10 metres beneath the surface.
International shortages are once again beginning to bite, with each new tyre on the 240-tonne Caterpillar tip truck costing upwards of $30,000. But the biggest shortages are for labour.
MMC has been exempted from a law that bans female truck drivers - a throwback to when only the strongest drivers could handle Mongolia's Russian-made trucks. ''Women are better drivers because they have respect for what they are doing, whereas men just go flat out,'' says the Australian training director, as he demonstrates a driving simulator which is programmed to replicate the mine and simulate snow, ice and emergency conditions. ''And we need any operator we can get.''
MMC is spending whatever it needs to overcome acute labour and equipment shortages, as it ramps up production to 7 million tonnes this year. But the picture of world class efficiency ends at the mine gate.
The dirt road to China is so dangerous it takes each of 400 trucks a full day to complete the 200 kilometres to the Chinese border. Many have landed on their sides when the road freezes over and drivers lose control. When the trucks get to the border they dump their loads at the edge of a showcase city of skyscrapers and formidable Chinese infrastructure.
MMC has urgent plans to pave the road to China but a series of political hurdles stand in the way of a railway line. The Mongolian Parliament has legislated that the government first has to connect Tavan Tolgoi with a Russian gauge line to the Russian rail network, which would entail a journey of nearly 7000 kilometres to the Pacific port of Vladivostok.
''We are landlocked, we would like to see we have options in both direction through Russia and through China,'' says Batbold, explaining a desire for market leverage.
While Mongolia is suffering from labour and equipment shortages and acute infrastructure bottlenecks, and the parliament is once again debating whether to renegotiate the Oyu Tolgoi investment agreement and hasn't agreed on how to develop Tavan Tolgoi, the question has shifted from whether Mongolia will become the world's new mining frontier to how it will handle the boom.
''I'd like to focus here on how the people of Mongolia get the benefits of the project as soon as possible,'' says Batbold. The country has come a long way since the prime minister was merely a businessman, albeit the one who personally acquired the Tavan Tolgoi tenement after it was returned to the government by BHP Billiton. ''This was up to BHP, it was a completely free commercial decision,'' says Batbold, who was later required to hand it back to the government. ''Everybody thinks it was like this 15 years ago but it was very different at the time.''
Edward Rochette, who hosted Tom Albanese during the Naadam festivities and was the Mongolia representative for Robert Friedland's Ivanhoe Mining, won't hazard a guess as to the current value of those Tavan Tolgoi mining rights. But he notes that the 4.5 per cent owned by MMC is currently valued at $4 billion on the Hong Kong stock exchange.
It reminds Rochette of an earlier episode, when he had personally negotiated for BHP Billiton to sell its rights in Oyu Tolgoi to Robert Friedland's Ivanhoe Mining.
''Friedland sent me down to Melbourne to negotiate with BHP,'' says Rochette. ''The purchase price was $US5 million … and it's now projected to be the third largest copper mine in the world.''
Since then, Mongolia has defied the odds to stand on its feet, Ivanhoe's Robert Friedland has become a multibillionaire and Rio's Tom Albanese has negotiated his way into the driver's seat at Oyu Tolgoi. With copper prices up more than 50 per cent in six months and hovering around $US10,000 a tonne, and the value of Oyu Tolgoi's gold production alone covering the mine's operating costs at current prices, the Gobi Desert seems awash with profit.
''This decade is going to be a great decade, great demand and [with] supply struggling to keep up,'' says Harding, the copper chief at Rio Tinto. ''And from everything I see, the following decade is going to be much the same. It will take much more than another Oyu Tolgoi coming on to satisfy that demand.''
CENTRAL ASIA METALS PLC Agreement reached to sell Tochtar subsidiary
February 21 (CAML) Central Asia Metals PLC,(AIM:CAML), a mining exploration and development company focused on base and precious metals in Central Asia, is pleased to announce that it has reached an agreement for the sale of its subsidiary, Tochtar LLP.
In line with the corporate strategy outlined at the time of the Initial Public Offering (IPO) in September 2010, the Tochtar subsidiary has been sold to Wildorf Holding Limited for an agreed consideration ofUS$2.5m, consisting of US$825,000 in cash and US$1,675,000 of historical cost liabilities.
The agreed price is for 100% of the asset and completion of the transaction is contingent upon receiving Article 71 clearance from the Kazakhstan Government.
The Chief Financial Officer of CAML, Nigel Robinson, commented;
"Following on from our decision to cease mining operations at Tochtar in 2009 we are delighted to have sold Tochtar. The deal removes the potential historical cost liabilities and will enable the CAML management to focus 100% in Kazakhstan on the delivery of the Kounrad SXEW Copper project"
<Mogi & Friends Fund A/C>
133%
Mogi & Friends Fund is a tiny fund of A$20.8K I created in late September with a few friends to put my own (and a few friends’) money where my mouth (just mine) is.
…
Mogi
Disclosures
· 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
Telephone/Fax: +976-11-321326
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
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Suite 906 · Central Tower · 2 Sukhbaatar Square
Sukhbaatar District 8 · Ulaanbaatar 14200 · 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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