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.
Happy Lunar New Year! Сар шинэдээ сайхан шинэлээрэй!
February 3-4 are Public National Holidays in Mongolia!
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Close: Mongolia Related ASX Listed Companies, February 2, 2010 | | |||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.094 | 0.001 | 0.094 | 0.095 | 0.095 | 0.095 | 0.093 | 8,753,191 | |
1.355 | 0.025 | 1.340 | 1.360 | 1.350 | 1.370 | 1.305 | 717,020 | |
0.615 | -0.005 | 0.615 | 0.635 | 0.620 | 0.635 | 0.600 | 559,840 | |
0.690 | 0.075 | 0.680 | 0.695 | 0.640 | 0.695 | 0.640 | 2,000,963 | |
0.400 | 0.000 | 0.450 | 0.470 | 0.000 | 0.000 | 0.000 | 0 | |
0.026 | 0.000 | 0.024 | 0.026 | 0.025 | 0.026 | 0.024 | 1,659,600 | |
0.011 | 0.000 | 0.011 | 0.014 | 0.011 | 0.012 | 0.011 | 2,764,428 | |
0.130 | 0.000 | 0.130 | 0.140 | 0.000 | 0.000 | 0.000 | 0 | |
0.355 | 0.005 | 0.355 | 0.360 | 0.345 | 0.360 | 0.340 | 548,199 | |
0.620 | -0.015 | 0.620 | 0.635 | 0.645 | 0.655 | 0.620 | 1,181,031 | |
31.770 | 0.270 | 31.750 | 31.900 | 31.900 | 31.950 | 31.710 | 569,178 | |
85.820 | 1.710 | 85.810 | 86.100 | 85.500 | 86.090 | 85.350 | 2,860,287 | |
45.700 | 1.080 | 45.700 | 45.720 | 45.270 | 45.840 | 45.180 | 14,309,341 | |
Source: asx.com.au
Credit Suisse Becomes Substantial Holder In Haranga Resources
February 2 (Mogi) Credit Suisse notified Haranga Resources (ASX:HAR) of becoming a substantial holder in the company with 5.02% of total voting power on January 31.
Bloomberg: En+, Russian Railways, Japanese Bid for Mongolian Coal
February 1 (Bloomberg) Billionaire Oleg Deripaska's En+ Group Ltd., OAO Russian Railways and Japanese trading companies are bidding for the Tavan Tolgoi coalfield in Mongolia, one of the largest untapped deposits of the steelmaking material.
En+ delivered an offer to the Mongolian government last week to take part in developing the project, which has more than 6 billion metric tons of coal reserves, Andrei Petrushinin, a spokesman for the company in Moscow, said by telephone today.
Russian Railways and Siberian Coal Energy Co., the nation's biggest producer of coal for power, also bid as part of a group of investors, said people at the companies who declined to be identified in line with internal policy. The group of 11 includes Japan's Sumitomo Corp., Marubeni Corp. and Itochu Corp., Russian Railways' press office said by e-mail.
Sumitomo and Marubeni officials didn't respond to calls to their press departments, while an Itochu official was unable to comment on the matter outside of normal office hours in Tokyo.
Mongolia, a mineral-rich country between China and Russia, is seeking developers to help it feed demand for raw materials from its neighbors, while maintaining control over the deposits. China's rising coal purchases will mainly come from Indonesia and Mongolia because of cheaper prices, according to David Fang, a director at China Coal Transport and Distribution Association.
Coal imports to China, the world's largest user, may rise 9 percent to 180 million tons this year, according to the median estimate of seven analysts in a Bloomberg survey conducted between Jan. 26 and Jan. 28. China boosted shipments into the country by 31 percent to a record 165 million tons in 2010.
Vale SA and ArcelorMittal are among bidders for Tavan Tolgoi, Reuters said today, citing an unidentified person.
Reuters: Vale, ArcelorMittal seen in hunt for Mongolia coal
* Bidders vying for mining licence for Tolgoi coal-source
* Preferred bidders likely to be decided by mid-Feb
* Bankers queuing for Tolgoi IPO worth around $1.5 bln
* Tsankhi block estimated to have 1.2 bln T of coal reserves
* Xstrata, Peabody also in the race, says Korea
TOKYO/BEIJING, Feb 1 (Reuters) - Resource-hungry Asian states are locking horns with steelmaker ArcelorMittal and miner Vale to develop the world's largest untapped coking coal deposit in Mongolia, as they scramble for raw materials to make steel.
Asian private and state-linked firms are among more than a dozen bidders vying for the Tavan Tolgoi coking coal project, along with the world's top steelmaker ArcelorMittal SA (ISPA.AS) and the top iron ore miner Vale (VALE5.SA) of Brazil, according to a source with direct knowledge of the matter. [ID:nWNAS0747]
At the same time, investment bankers are making a beeline to Ulan Bator, pitching for the country's biggest ever public offering of shares, estimated at around $1.5 billion, for some Tavan Tolgoi assets. Tavan Tolgoi is controlled by Mongolian government entity Erdenes MGL.
"There's a lot going on in Ulan Bator right now. All the flights are full and everyone is rallying around this project trying to find a way in," said a banker from the capital, where temperatures are hovering around minus 20 degree centigrade.
"Erdenes, which has been tasked with running the eastern bloc (for the IPO), has been absolutely inundated by investment banks over the past two or three weeks," said the banker, who did not want to be named because of the sensitivities surrounding the deal.
GRAPHIC on Tavan Tolgoi: link.reuters.com/par77r
FACTBOX on Tavan Tolgoi coal deposit [ID:nTOE68D070]
FACTBOX on political risks in Mongolia: [ID:nRISKMN]
Special report on Mongolia mines: r.reuters.com/nas97p
China, Japan and South Korea are scouring the world and snapping up iron ore and coking coal assets to diversify from heavyweight suppliers such as BHP Billiton (BLT.L) and Rio Tinto (RIO.L) (RIO.AX).
Their eyes are falling on Mongolia, which while poor and undeveloped, sits on vast quantities of untapped mineral wealth and which, analysts say, could be one of the fastest growing economies of the next decade.
Mongolia's tiny stock index jumped about 45 percent last week alone as investors scrambled to get exposure to the frontier market. (www.mse.mn/)
The country's fledgling democratic government plans to give strategic investors a chance to develop the western block of the Tavan Tolgoi mine, estimated to house a total 6 billion tonnes of coal reserves, on a contract basis and cut its stake in the eastern block through an initial public offering.
Over 20 investment banks were planning to submit written proposals for the stake sale, The Independent on Sunday reported this week. [ID:nLDE70T0IM]
"It is the biggest undeveloped coking coal mine in the world, it is strategically important and that's why you see so many interested parties," said Carol Cao, an analyst with Macquarie in Hong Kong.
"MINEGOLIA"
Mongolia has drawn serious attention from global investors after the deal sealed in 2009 between Ivanhoe Mines Ltd (IVN.TO) and Rio Tinto to develop the $6 billion Oyu Tolgoi mine, one of the world's biggest untapped copper and gold deposits.
Last year, Mongolian Mining Corp (0975.HK), the country's largest privately held domestic producer and exporter of coking coal, listed in Hong Kong after a $650 million IPO.
South Korea, one of the bidders, said there were six bidders in the race, including Xstrata (XTA.L), U.S. coal miner Peabody (BTU.N) and consortia led by South Korea, China, Japan and India.
State-run Korea Resources Corp is leading the Korean consortium, which is formed of nine Korean firms, two Russian firms and four Japanese companies, to develop the Tsankhi block, which is estimated to have 1.2 billion tonnes of coal reserves.
"Mongolia has rich untapped reserves and the block in the auction is very attractive, as it is one of the few large-sized coal mines in the world left undeveloped," Korea Resources Corp said in a statement.
UNCERTAINTY
The Mongolian government is likely to decide the preferred bidders in mid-February, after the Lunar New Year holiday starting this week, Korea Resources said.
Tavan Tolgoi's hard coking coal is in great demand in China, the world's biggest steel producer, which needs imported coke to keep its blast furnaces busy.
The vast majority of imported coking coal in China, Japan and Korea comes by ship from Australia, but Mongolian imports will reduce freight costs.
"There are a lot of forces at play here: There are the Russians in the north that would like to get their hands on it, there are the Chinese in the south that would like to get their hands on it," said Glyn Lawcock, an analyst at UBS.
"There are no ports in Mongolia where you can get it out. It makes more sense for the coal to end up in China, given its proximity and the demand there."
But the auction for the mining licence, which closed on Monday after two weeks of delay, faces uncertainty, as Mongolia, dubbed "Minegolia" by analysts, has struggled to develop a consistent strategy when it comes to overseas companies buying into national assets.
It has long frustrated the global resources industry by dragging its feet on investment decisions. The government, hobbled by indecision and bureaucratic infighting, took years to conclude the agreement to develop the Oyu Tolgoi copper and gold project.
An initial 2009 bidding auction for the Tavan Tolgoi coal project attracted consortia from South Korea, Japan and Russia as well as mining giants such as BHP, Vale, India's Jindal, and China Shenhua Energy (601088.SS).
But the government abruptly announced the auction would be cancelled early last year and said the state would maintain control and foreign firms could bid for licenses to develop and run the mine.
BIDDERS
A top executive at a Japanese trading firm said BHP, which previously expressed interest in the project, had pulled out. Fortescue Metals (FMG.AX) was one of bidders now, said a source, who did not want to be named because the process was not public yet.
Members of the South Korean bidding group include steelmaker POSCO (005490.KS), utility firm KEPCO (015760.KS), trading firms LG Corp (003550.KS) and Daewoo International Corp (047050.KS), Russian Railways and Japanese trading houses Itochu Corp (8001.T), Sumitomo Corp (8053.T), Marubeni Corp (8002.T) and Sojitz Corp (2768.T).
A spokesman for Russian railways said Russian coal miner SUEK was also a member of the consortium. SUEK could not be reached for comment.
Aluminium tycoon Oleg Deripaska's En+ Group filed an independent bid, an En+ spokesman said.
Sources told Reuters on Monday Mitsui is leading a competing Japanese consortium, which has partnered with Shenhua [ID:nTOE70U02Q].
Erdene Discovers New Copper Zone at Zuun Mod Project, Mongolia Khuvyn Khar Drilling Returns 34 Metres of 1.3% Copper
HALIFAX, NOVA SCOTIA--(Marketwire - Feb. 1, 2011) - Erdene Resource Development Corp. ("Erdene") (TSX:ERD) is pleased to announce a new copper discovery on its wholly owned Zuun Mod project in south-western Mongolia.
"We are very pleased by this new copper discovery located over two kilometres northwest of the existing Zuun Mod molybdenum/copper resource and look forward to the resumption of drilling in the near future," said Peter Akerley, President and CEO. "This intersection of significant copper mineralization further illustrates the potential for new discoveries within the large porphyry system at Zuun Mod."
As part of a recent drilling program at Zuun Mod, three vertical holes were completed in December 2010 to test geophysical and geochemical targets outside the area of the main molybdenum deposit. Drill hole ZMD-121, located approximately 2.2 kilometres northwest of the northern extent of the main molybdenum deposit, intersected a monzonite hosted breccia intruding a package of dacite and andesite porphyry. The monzonite hosted breccia zone returned 34 metres of 1.3% copper from 308 to 342 metres. This mineralized zone included a 10 metre section of 3.1% copper (maximum value for 2-metre samples was 4.1% copper). A drill rig remains on site and a follow-up program is now being designed for the resumption of drilling. Maps showing the location of drill hole ZMD-121 and photos of mineralized drill core are available on Erdene's website at www.erdene.com.
Khuvyn Khar Copper Prospect Drilling (at Zuun Mod)
Hole ZMD-121, drilled in the north-central portion of the Zuun Mod licence in a target area referred to as Khuvyn Khar (meaning Black Cirque), has intersected a new zone of greater than one percent copper. The copper zone was intersected at 308 metres depth coincident with both a dipole-dipole chargeability high and an RTP (reduced to pole) magnetic low geophysical signature. This geophysical anomaly is interpreted to reflect magnetite destructive alteration and metallic mineralization associated with a buried granodiorite-monzonite intrusive. The target area is also defined by surface geochemical molybdenum and copper anomalies. The remainder of the hole has elevated copper values averaging 781 ppm Cu from 5 metres to 308 metres (above the higher-grade zone) and 542 ppm Cu from 342 metres to end of hole at 378 metres (below the higher-grade zone). Analytical results have only been returned for copper and molybdenum with additional analysis for other metals now being completed. The Khuvyn Khar prospect remains untested below 378 metres depth (ZMD-121) and is open to the north and west. To the east, two holes have been previously drilled, ZMD-08 (450 metres to the east-northeast) which returned 0.10% Cu over 26 metres and KKMD-13 (800 metres to the southeast) which returned 152 metres of 0.16% Cu including 32 metres of 0.22% Cu.
Erdene controls the Zuun Mod deposit through a single exploration license totaling 30,650 hectares, located in Bayankhongor Province in Mongolia, approximately 950 kilometers southwest of Ulaanbaatar and 215 kilometers from railhead on the Mongolia-China border at Ceke. The railhead is located 20 kilometers south of the Nariin Sukhait and Ovoot Tolgoi coal mines in Southern Mongolia.
Cashmere prices set to soar after harsh winter in Mongolia
February 2 (Daily Mail) The cost of cashmere sweaters and coats is set to soar after harsh winter weather in Mongolia wiped out a quarter of the country's wool producing goats.
The especially soft yarn, which is used by a host of retailers including Marks & Spencer and Burberry, comes from the coats of the shivering goats.
The animals produce the cashmere to keep them warm from the chilly conditions.
But the mercury plunged to -45C in the region this winter freezing a quarter of the goats which either died from exposure or were eaten by hungry locals.
Experts say the lack of supply and increased demand could drive up prices by as much as 40pc.
It is the latest blow to Britain's fashion retailers who have already said High Street prices may rise 8pc due to a spike in cotton prices.
Victoria Stapleton, founder of cashmere retailer Brora, said: 'Cashmere prices will have to go up between 10-20pc. It is terrifying for nomadic herdsmen whose whole livelihood is based around the goats.'
Origo: Interim Management Statement for the three month period from October 1, 2010 to December 31, 2010
February 1 (Origo) This Interim Management Statement by Origo Partners Plc ("Origo" or the "Company") and its subsidiaries (the "Group") relates to the three month period from October 1, 2010 to December 31, 2010 (the "Period").
Highlights for the Period:
· Unaudited net asset value at the end of the Period rose 7% to US$173.8 million compared to US$162.5 million for the period ending June 30, 20101
· Unaudited net asset value per share of US$0.58 at the end of the Period compared to US$0.55 per share for the period ending June 30, 2010
· Total investments of US$21.3 million
· Realizations of US$21.4 million, primarily from the partial sale of the Company's stakes in HaloSource (US$11 million) and Rising InfoTech (US$6.2 million)
· Net cash position of US$29.9 million
…
Table 1: Top 10 Investments (US$ million)
Company | Sector | Instrument | Ownership | Cost | Fair value | % of |
R. M. Williams Agricultural Holdings Pty Ltd | Agriculture | Common Stock & Loan | 20.1% | 23.1 | 31.5 | 18.1% |
Gobi Coal & Energy Ltd | Metals & Mining | Common Stock | 19.6% | 14.7 | 26.3 | 15.2% |
IRCA Holdings Ltd. | Metals & Mining | Common Stock & Loan | 49.1% | 23.3 | 23.3 | 13.4% |
HaloSource, Inc. | Clean tech | Preferred Stock | 4.3% | 3.1 | 7.3 | 4.2% |
Rising Technology Corporation Ltd/ Beijing Rising Information Technology Ltd | Consumer, Media & Technology | Common Stock | 2.0% / 1% | 5.6 | 9.9 | 5.7% |
Achieve Stars Development Ltd(Niutech Energy Ltd) | Clean tech | Common Stock | 17.1% | 4.7 | 4.7 | 2.7% |
Unipower Battery Ltd. | Clean tech | Common Stock | 16.5% | 4.3 | 4.3 | 2.5% |
Staur Aqua AS | Clean tech | Common Stock & Loan | 9.2% | 4.1 | 4.4 | 2.6% |
Kincora Group Ltd | Metals & Mining | Common Stock | 25.0% | 2.9 | 2.9 | 1.7% |
Fans Media Co., :td | Consumer, Media & Technology | Preferred & Common Stock | 14.3% | 2.4 | 2.4 | 1.4% |
…
Following a review of the evolving Mongolian portfolio of exploration projects, the Company further divested two smaller holdings in Bumbat Consolidated Ltd ("BCL") and ATC for US$1.2 million and US$3 million respectively allowing a greater focus on the Company's two flag-ship Mongolian assets, Gobi Coal & Energy Ltd and Kinkora Group Ltd as well as new opportunities presently being evaluated in that market.
…
Denison Outlines 2011 Operating Plans and Releases Final 2010 Production and Sales Volumes, (projects $7.4M program in Mongolia)
TORONTO, ONTARIO--(Marketwire - Jan. 31, 2011) - Denison Mines Corp. (TSX:DML) (NYSE Amex:DNN) ("Denison" or the "Company") announces that its 2011 operating plan forecasts production of 1.2 million pounds U3O8 and 2.2 million pounds V2O5 from its operations in the United States. "The 2011 plan and budget is focused on the growth of the Company with the largest exploration program ever undertaken on our Wheeler River project, the recommencement of drilling on our Zambian project and the development of our second mine on the Arizona Strip" said Ron Hochstein, President and CEO of Denison. Unless otherwise stated all figures are in U.S. dollars.
2011 Operating Plans
…
Business Development
In Mongolia, a $7.4 million exploration and development program is projected. A $3.0 million, 38,000 metre exploration program is anticipated to be undertaken on license areas that currently do not have defined resources in order to confirm resources and support future work on these license areas. Development activities on license areas which are more advanced will include drilling of initial test patterns and pilot plant design. The implementation of the Mongolian program is contingent upon resolution of outstanding issues with the Mongolian Government regarding the Nuclear Energy Law and the structure of the Gurvan Saihan Joint Venture. The Company remains hopeful that these issues will be resolved early in 2011 such that the planned programs can be completed.
…
IMF: INFLATION MAY BE UP TO 20 PERCENT
February 2, Ulaanbaatar, Mongolia, /MONTSAME/ Here is the statement by IMF Staff at the Conclusion of the 2011 Article IV Consultation and Post-Program Monitoring Discussion with Mongolia.
An International Monetary Fund (IMF) mission, led by Steven Barnett, visited Mongolia January 20-February 1, 2011, to hold discussions for the 2011 Article IV consultation and Post-Program Monitoring.
The mission met with the Mongolian authorities, private sector, and academics to discuss macroeconomic developments and policies since Mongolia's successful completion of the country's Stand-By Arrangement (SBA) last year. At the conclusion of the visit, Mr. Barnett made the following statement:
"Mongolia is in the midst of a robust economic recovery and growth this year is projected to top 10 percent, fueled by a continued surge in mineral exports, strong private sector activity, and a highly expansionary fiscal policy. The economy is showing signs of overheating with inflation already too high and likely to reach 20 percent before the end of the year.
"The large increase in fiscal spending this year will actually do more economic harm than good. Government expenditure already amounts to nearly two-thirds of the non-mineral economy and the 35 percent spending increase in this year's budget will generate much more demand than can plausibly be met by an increase in domestic production. As a result, any immediate benefits of higher spending will be dissipated through higher inflation, faster real exchange rate appreciation that draws in imports and hurts local producers, and ultimately a crowding out of private sector activity. International experience also shows that such high inflation-particularly given its concentration in staple food items-will have an especially hard impact on the poor. Therefore, the 2011 budget should be amended to reduce spending substantially.
"There are limits to what monetary policy can achieve if budget spending this year is not scaled back. Nonetheless, the central bank should be more proactive in fighting inflation and promptly initiate a tightening cycle, starting with an up-front hike in interest rates. The central bank policy rate is already negative in real terms and will become even more so as inflation rises.
"The flexible exchange rate regime has been working well over the past 1Ѕ years and international reserves are at an all time high. Moreover, the nominal appreciation that took place last year helped to tighten monetary conditions and reduced the increase in inflation. Looking forward, the flexible exchange rate regime will continue to be well suited for the Mongolian economy.
"The Mongolian economy has a bright future, as development of the mineral sector will lead to a substantial growth and an opportunity to spread prosperity to all Mongolian citizens. Such prosperity, however, is not guaranteed and will require structural reforms-with a top priority being introduction of a targeted poverty benefit-and disciplined macroeconomic policies, including
(i) containing fiscal spending pressures and strictly adhering to the fiscal stability law;
(ii) gearing monetary policy toward containing inflation, including by timely adjusting interest rates in line with the evolving price pressures;
(iii) maintaining a flexible exchange rate regime; and (iv) safeguarding the banking system through prudential regulation and supervision. Pursuing such a combination of policies would leave Mongolia well poised to ensure that its mineral wealth translates into strong, sustained, and equitable growth.
"I would like to express our sincere appreciation to the Mongolian authorities and non-government representatives for their hospitality and the productive and candid nature of our discussions."
SOME 46 THOUSAND LIVESTOCK HAVE PERISHED
February 2, Ulaanbaatar, Mongolia, /MONTSAME/ The major part of Mongolia has been covered by snow.
A wintering is worsening in 88 soum of 15 aimags. For the time being, 46 thousand 514 heads of livestock have perished in 129 soums of 17 aimags.
THE LANDS HAVE BEEN DEVASTATED
February 2, Ulaanbaatar, Mongolia, /MONTSAME/ Together with related organizations, a Ministry of environment carried out of census of lands destroyed in 2009-2010 by mining and other activities in 15 aimags, including Khentii, Arkhangai, Ovorkhangai, Bayankhongor, Omnogobi, Dornogobi, Darkhan-Uul, Dornod and Dornogobi.
It has been revealed that over 500 fields--3,984.4 hectares--have been completely devastated in 56 soums of 15 aimags. The lands fully destroyed accounts for 60 percent due to 340 entities, other lands--to illegal gold diggers' activities.
In 2010, some 2,112.45 hectares in 9 aimags have not been recovered.
<Mogi & Friends Fund A/C>
139%
Mogi & Friends Fund is a tiny fund of A$21.8K I created in late September with a few friends to put my own (and a few friends') money where my mouth (just mine) is.
The Fund is taking part in a new capital raising. Will keep you updated once it's complete.
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
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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