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, June 9, 2011 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.036 | -0.002 | 0.036 | 0.038 | 0.036 | 0.038 | 0.036 | 2,863,750 | |
1.415 | -0.030 | 1.365 | 1.415 | 1.400 | 1.420 | 1.345 | 290,623 | |
0.225 | -0.015 | 0.225 | 0.230 | 0.235 | 0.235 | 0.225 | 161,600 | |
0.650 | 0.035 | 0.640 | 0.650 | 0.620 | 0.660 | 0.610 | 872,409 | |
0.010 | 0.000 | 0.010 | 0.011 | 0.010 | 0.010 | 0.010 | 1,050,000 | |
0.005 | 0.000 | 0.005 | 0.006 | 0.000 | 0.000 | 0.000 | 0 | |
0.065 | 0.006 | 0.063 | 0.065 | 0.059 | 0.066 | 0.059 | 12,588,877 | |
0.175 | -0.010 | 0.175 | 0.180 | 0.180 | 0.185 | 0.175 | 223,285 | |
1.210 | -0.005 | 1.180 | 1.210 | 1.180 | 1.215 | 1.170 | 223,370 | |
0.235 | 0.005 | 0.230 | 0.235 | 0.230 | 0.235 | 0.230 | 252,001 | |
0.400 | 0.000 | 0.380 | 0.500 | 0.000 | 0.000 | 0.000 | 0 | |
0.400 | -0.010 | 0.400 | 0.410 | 0.410 | 0.410 | 0.400 | 55,195 | |
21.720 | 0.030 | 21.680 | 21.720 | 21.700 | 21.750 | 21.590 | 1,272,450 | |
79.790 | 0.190 | 79.780 | 79.790 | 79.400 | 80.090 | 79.150 | 2,327,906 | |
42.950 | 0.160 | 42.920 | 42.950 | 42.630 | 43.040 | 42.520 | 9,698,110 | |
Source: asx.com.au
Supplements & Amendments to OT Shareholder Agreement Signed
June 9 (summarized from Ministry of Finance press release)
Following changes and additions to OT LLC Shareholder agreement signed today by Erdenes MGL, Oyu Tolgoi LLC, OyuTolgoi (BVI), Oyu Tolgoi Nederland BV:
- Loan interest changed from 9.9+US inflation to LIBOR+6.5%. effective Jan 31, 2011.
- Mongolian side can invest in the project proportionate to stake at any time
- Funding hedging options: Company to hedge risks from LIBOR volatility and review interest rate every 7 years.
- 3rd party financing: Company shall prioritize 3rd party financing that best suits the project
- Mongolian stake no lower than 34%: previously it was agreed that Mongolia’s stake will not go lower than 34%. This time, it is agreed that 34% will not go lower without Mongolia’s consent, regardless of whether Mongolia has invested in the project or not.
- Preferred shares: clauses concerning preferred shares removed from agreement.
Rio Tinto International Holdings, as a party to OT Investment Agreement, signed and agreed to:
- Not to transfer any stake in OT to any state-owned entities, or direct or indirect stakeholders in OT without consultation and written consent from Mongolian government.
Link to release (Mongolian)
Ivanhoe Mines says 23 pct construction complete at Oyu Tolgoi
* Arbitration proceeding with Rio Tinto expected to resume this month
* Says arbitration not to adversely affect construction at Oyu Tolgoi
* Shares rise 3 pct in Toronto, New York (Adds details, share movement)
June 9 (Reuters) - Ivanhoe Mines Ltd said nearly one-fourth of the construction of its flagship Oyu Tolgoi project in Mongolia was completed by May and it continued to be ahead of schedule, sending its shares up 3 percent in Toronto and New York.
Ivanhoe said arbitration proceedings with project partner Rio Tinto regarding Ivanhoe's shareholders' rights plan is expected to resume later this month, following the expiry of a mutually-agreed six-month suspension.
The arbitration will not adversely affect construction at Oyu Tolgoi, said Ivanhoe Chief Executive Robert Friedland.
Last year, Rio launched arbitration proceedings to resolve a dispute over a shareholder rights plan adopted by Ivanhoe. Rio alleged that the plan was in breach of its contractual rights. [ID:nSGE66B0JD]
Ivanhoe owns 66 percent of the Oyu Tolgoi project, with the government of Mongolia owning the rest.
Rio Tinto currently owns a 42.1 percent stake in Ivanhoe and can gradually raise this stake up to 49 percent.
On Thursday, Ivanhoe said commissioning of the concentrator's first production line was expected to begin in the second quarter of 2012.
Full-scale construction at the copper-gold-silver mining complex is continuing toward a projected peak level of activity expected to be reached in the third quarter, the company said in a statement.
The project has set an objective of delivering the first ore from the mine to a mill circuit test in the concentrator within 12 months -- in June 2012.
The mine is one of the world's biggest untapped copper-gold deposits.
Ivanhoe said it is on track to start commercial production at the project in the first half of 2013.
Shares of Ivanhoe Mines were up 47 Canadian cents at C$21.94 on Thursday morning on the Toronto Stock Exchange. They were up at $22.54 on the New York Stock Exchange.
MATD closed 4% higher to 142.5p
Another spud for Petro Matad
Mongolia-focused explorer Petro Matad (AIM:MATD) has spudded its second exploration well in less than a month.
June 9 (upstreamonline.com) The London-listed independent began drilling at the Davsan Tolgoi-6 well this afternoon, it wrote in a stock exchange announcement.
The well, being drilled by DQE International, will be vertically drilled to a target depth of 2100 metres.
“DT-6 will test a very thick section of the Tsagaantsav formation, including 234 metres of the Uppermost Tsagaantsav (Uvgan Gol horizon) within a well-defined northeast-trending paleovalley, as well as 364 metres of the underlying Lower Tsagaantsav formation,” the company wrote today.
The latest development follows the spudding of the Davsan Tolgoi-5 well in mid May. Also last month Petro Matad announced that it had found oil at its Davsan-Tolgoi-4 (DT-4) well with an initial analysis pointing to six metres of net pay.
Garrison Announces Private Placement
TORONTO, ONTARIO--(Marketwire - June 3, 2011) - Garrison International Ltd. (the "Company") is pleased to announce that it intends to undertake a non-brokered private placement of up 100,000,000 units (the "Units") at a price of $0.05 per Unit for aggregate gross proceeds of up to $5,000,000 (the "Offering"). Each Unit will consist of one common share of the Company (a "Common Share") and one common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to purchase one further Common Share at a price of $0.10 per Share for a period of two years from the closing of the Offering.
…
SouthGobi Resources Renews Common Share Repurchase Program
HONG KONG, CHINA--(Marketwire - June 8, 2011) - SouthGobi Resources Ltd. (TSX:SGQ)(SEHK:1878) (the "Company" or "SouthGobi") announced today that its Board of Directors has authorized the renewal of its share repurchase program to purchase up to a total of 3,183,650 common shares of the Company on either of the Toronto Stock Exchange ("TSX") or the Stock Exchange of Hong Kong ("SEHK"), representing approximately 1.7% of the current outstanding common shares of the Company.
Apart from exceptions related to block trades for purchases made on the TSX, the Company also is subject to a daily restriction of purchasing no more than 54,420 commons shares representing 25% of the average daily trading volume for the 6 calendar months immediately prior to the Company seeking approval for the share repurchase program from the TSX. At the close of business on June 3, 2011 the Company had 183,742,998 issued and outstanding common shares.
The share repurchase program will commence on June 15, 2011 and will remain until June 14, 2012, or until the purchases are completed or the program is terminated by the Company. All repurchased common shares under the share repurchase program will be cancelled. As of June 3, 2011 the Company has repurchased and cancelled a combined 1,816,350 common shares on the TSX and the SEHK at a weighted-average price of C$12.51 per share.
SouthGobi's Board of Directors believes that having the capability to repurchase common shares increases the investment alternatives that can be undertaken for the benefit of all shareholders. Furthermore, the program will not impact on SouthGobi's growth plans. Any shares purchased under the program will increase the proportionate interest of, and may be advantageous to, all remaining shareholders of SouthGobi.
From time to time, SouthGobi may not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. For example, according to applicable Hong Kong securities laws the Company is deemed to be an 'insider' in its own stock for four weeks in advance of any board meeting to receive quarterly results.
The price that SouthGobi will pay for any shares under the share repurchase program on the SEHK shall be, on any date, an amount that is not more than the lesser of: (A) the simple average of the closing price of the Company's common shares on the TSX for the 20 business days preceding the purchase; and (B) 1.05 times the average closing market price for the five preceding trading days on which the common shares were traded on the SEHK and on the TSX shall be an amount that is not more than the last independent trade of a board lot of the common shares.
As part of its secondary listing in Hong Kong, the Company was granted a ruling by the Securities and Futures Commission of Hong Kong that it is not a "public company in Hong Kong". SouthGobi is, therefore, not subject to Hong Kong's Codes on Takeovers and Mergers and Share Repurchases. As a result, the share repurchase program on the SEHK will be governed by Canadian law relating to issuer bids conducted on foreign exchanges and relevant Hong Kong Listing Rules, while purchases made on the TSX will be undertaken in accordance with the TSX's listing rules covering Normal Course Issuer Bids.
Standard Bank Increases MMC Stake to 10.79% from 9.09%
June 9 --
USD255 million of Chinese loan to be spent on building bridges
June 9 (news.mn) The Standing Committee on Security and Foreign Policy yesterday discussed the ways in which a Chinese loan of USD500 million, to be received under an agreement between the Ministry of Finance of Mongolia and the Export and Import Bank of China, is to be used. The present proposal is to spend USD200 million of the money on agriculture and the remaining USD300 million on health, education and infrastructure. In infrastructure, USD255 million is planned to be used to build bridges over railroads at some places in Ulaanbaatar.
Noting that the National Security Ideology stresses the need to ensure that loans from any country should not make Mongolia dependent on it, S.Oyun asked what percentage of the country’s total foreign debt would now be held by China. Former Premier S.Bayar had asked China for USD300 million at the start of the economic crisis, but there was no progress on his request. The present loan is for an even larger amount. Total foreign debt now stands at 20% of the GDP of Mongolia.
D.DEMBEREL MEETS JAPANESE DELEGATION TO TALK ABOUT OIL REFINERY
Ulaanbaatar, Mongolia, /MONTSAME/ The Speaker D.Demberel received Thursday Ryuichi Kaga, a Resident Executive Officer at Japan Bank for International Cooperation (JBIC) and officials of the “Marubeni” and “Toyo Engineering” Corporations.
They have shared views on a project on constructing an oil refinery in Darkhan-Uul aimag. Mr. Kaga has said the JBIC, experienced in implementing investments projects, is ready to render a support to Mongolia in realize the project on erecting the oil refinery in Darkhan-Uul.
Before this, in 2008, the JBIC expressed a willingness to help Mongolia to draw up a technical and economic justification for the oil refinery. “Our bank has many advantages, for example, it can give biggest financing, its credit period is long, the interest requires less terms against other requirements at the market,” Mr. Kaga has said. He has emphasized an importance of clarifying right receivers of loans because the financing will be made under a guarantee from Mongolia's government. He has said the JBIC may also implement projects on developing communications by using satellites and processing coal in Mongolia.
In turn, the Speaker has said that a willingness of the bank to invest is an expression of our countries' friendly ties and thanked the Japanese side. He has said the State Great Khural and the government are aiming to provide the domestic needs with oil products by erecting own oil refinery and by processing crude oil imported. “Working out the technical and economic justification is approaching to end, and the construction may start in the nearest future,” he has stressed, adding the matter has been tackled in principle on a cabinet guarantee of the capital for constructing the refinery.
A vice president of the “Toyo Engineering” Corporation Mr. Kakuma Hatano has thanked the Speaker for appreciating the project. He has underlined the corporation has realized many projects in Japan and abroad by using the latest high technologies. He has said the project has a vital importance in developing the industrial sector in Mongolia, and that when the finances are resolved, the Corporation will also be ready to prepare trained specialists.
A great work will start this year to erect the oil refinery with capability of processing 44 thousand barrels of oil a day. Both Mongolian and Japanese state and private companies will take part in it. It is planned to put into use the refinery in three years. Financing for the refinery to be erected with USD 600 million will be allotted from the JBIC under Mongolian government's guarantee.
June 8 Cabinet Meeting
BOUNDARIES WIIL BE MARKED TO PROTECT RIVERS AND FORESTS FROM GOLD MINERS, Montsame, June 9
CABINET APPROVES SPECIAL USAGE AREA, Montsame, June 9
SPECIAL LOAN AGREEMENT TO BE SIGNED, Montsame, June 9
MONGOLIA TO FINANCE SOME PARTS OF AIRPORT PROJECT, Montsame, June 9
SALARIES COEFFECIENT MIGHT BE CHANGED FOR THE SAKE OF PENSIONS, Montsame, June 9
CABINET MEETING IN BRIEF, Montsame, June 8
Government to spend MNT120 billion on new airport construction
June 9 (news.mn) After a review of the funds needed for Mongolia’s share in the construction of the new airport with a Japanese soft loan, the Government has decided to build some roads and the square outside the airport. The original cost estimate of the project was USD320 million. Delay in starting the work has added MNT120 billion to this and Mongolia will spend this amount.
The airport will have 20 runways. The tender for construction has been announced and work is expected to begin in December. Prime Minister S.Batbold has asked the Minister for Road, Transportation and Urban Development, Kh.Battulga, and for Finance, S.Bayartsogt to provide the financing from the state budget. He also stressed the need for responsibility and transparency at every step.
Hactl provides staunch support to MIAT Mongolian Airlines
June 9 (LogisticsWeek) Hong Kong Air Cargo Terminals Limited (Hactl) is pleased to announce that MIAT Mongolian Airlines has appointed Hactl as its cargo ground handler at Hong Kong International Airport to support its new service between Hong Kong and Ulaanbaatar.
MIAT Mongolian Airlines, the national carrier of Mongolia, launched its new international flight between Ulaanbaatar and Hong Kong. Appointed by MIAT, Hactl will provide physical cargo handling services to its twice-weekly scheduled passenger flight which operates every Thursday and Sunday using B737-800 aircraft. The inaugural flight was successfully handled on 2 June 2011.
Ms Lilian Chan, Executive Director of Hactl, said, “We are very delighted to welcome MIAT Mongolian Airlines as our new customer, and we congratulate the carrier on the launch of its new route to Hong Kong. With 35 years of experience in the industry, we are always ready to provide the best quality cargo handling services to MIAT Mongolian Airlines. We keenly look forward to supporting the carrier’s business growth in Hong Kong and our blossoming partnership.”
Mr Orkhon Tseyen-Oidov, President & CEO of MIAT Mongolian Airlines, said, “We are very happy to partner with Hactl, the world’s No.1 air cargo terminal operator which provides the highest level of cargo handling services in Hong Kong. We are confident that Hactl with its experience and quality service will add value to our business and support our future expansion.”
President visits USA from June 14 to 17
June 9 (news.mn) President Ts.Elbegdorj will meet with President Obama, Secretary of State Hillary Clinton and Speaker of the House of Representatives, J.Boehner during his official visit to the USA between June 14 and 17, according to information from the Ministry of Foreign Affairs and Trade. Their talks will cover bilateral relations and strengthening the partnership.
Radio interview with WSJ’s James Areddy, author of MINING BOOM FUELS NEW MONGOLIA IN WSJ, June 2
Mongolia is Moving on Up
June 8 (New Hampshire Public Radio) Mongolia is a place we used to describe as being in the outer reaches of the world. But did you know it has a democratic government and is home to one of the year's hottest IPOs? Financial powerhouse Goldman Sachs is a backer and the government, which owns the company, plans on giving shares to every citizen in the country.
Joining us to talk about Mongolia’s mineral wealth and how the government has been trying to distribute it is James Areddy of The Wall Street Journal.
Links:
§ MINING BOOM FUELS NEW MONGOLIA IN WSJ
Link to interview intro, link to interview audio,
The Biggest Coking Coal Deal Ever Offered
Driving a 34, New Energy IPOs and $193,680 for Everyone
June 9 (by Christian A. DeHaemer) I'm off to Mongolia again in ten days. I'll be presenting at the Firebird Fund Mongolian Junket.
I'd like to share with you an e-mail I received recently:
Dear Mongolia Junket Attendee:
If you are attending the tourist portion of the conference, please elect one of two following activities:
1. AK-47 and sniper rifle target practice, or
2. Tank driving and live firing exercise (As the tank is a 15 m drive from firing range, it is impossible for an attendee to do both).
This is part of why I love doing what I do.
Of course, I picked the second choice. I can shoot a AK-47 in my backyard, but how often do you get to drive what The Military Channel ranked as the number one tank ever built?
In fact, Mongolia fought with the Soviet Union in the largest tank battle in history against the Japanese in 1939. The Battles of Khalkhin Gol were so horrific that the Russians and Japanese ignored each other for the rest of WWII.
Forget the Tanks
But it's not old battle scars I mean to pick.
No, I'm enduring the 25-hour trip halfway around the world for only one reason...
Mongolia is about to become the greatest investment story of our lifetime.
Let me give you one example.
In the next year, there will be a Mongolian energy IPO that will make headlines around the world and increase the wealth of the average Mongolian by a factor of 53.
This company is known as Erdenes-Tavan Tolgoi, or Five Hills Ltd. It is commonly referred to as TT, though it has yet to begin operations. That isn't stopping Goldman Sachs and partner Deutsche Bank AG from doing the IPO...
GS and DB are excited because TT has a massive deposit of coking coal. In fact the 6.4 billion metric tons is the world's largest untapped deposit.
Real Wealth
As I write this, the Mongolian government is looking for an operator. It will likely be a large, multinational corporation.
The last successful Mongolian IPO was Mongolian Mining Corp., which was offered up in the fall of 2010. MM's IPO was listed in Hong Kong and raised $651 million. At the time, it was Mongolia's largest privately-held producer and exporter of coking coal.
Coking coal is important because you need it to make steel.
TT will be even bigger, and is expected to raise as much as $10 billion. Here is where it gets fun...
The government has given each of its three million citizens 538 shares, or 10% of the company. At $10 billion, the shares would be worth $360 — or $193,680 per citizen. According to the CIA's World Factbook, Mongolia had a total GDP of $11.02 billion in 2010. Per capita income was $3,600.
In other words, Mongolians will suddenly be rich.
The Mongolian stock exchange will reflect this new wealth as everything from services to retail to real estate see a surge of buying.
But this is just the start.
Coal isn't the only thing Mongolia is blessed with. The country has copper, gold, uranium, and rare earth elements. International Monetary Fund predicts Mongolia’s annual economic growth will jump 23 percent in 2013 as mining projects begin production.
China and India to Double Coal Imports by 2015
According to Reuters, China's thermal coal imports could rise to 200 million tonnes by 2015 up from 90 million tonnes in 2011.
India's coal imports are expected to rise to 100 million tonnes from 67 million tonnes over the same time period.
Despite this projected growth, the recent tsunami in Japan has pushed coal prices down. The Australian coal index, globalCOAL, dropped from $140 a tonne in January to $119 a ton last week. Many Mongolian coal producers have dropped in price as well.
This looks like a great entry point on one of the clearest trends in the world.
Coal demand is surging. Mongolia has a lot of it.
My Crisis and Opportunity portfolio current holds three Mongolian coal mining companies. If you can ride through the short-term volatility, these are stocks that could make your retirement.
<Mogi & Friends Fund A/C>
Historic +9.4%, Qtd -37.7%
Mogi & Friends Fund is a tiny fund of A$23K 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
---
"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
P Please consider the environment before printing a copy of this email.
Central Tower · 12th Floor · Left Wing · 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.
Disclosure/Disclaimer
CPS Securities, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions mentioned in correspondence from CPS International.
CPS International advise this email contains general information only and does not include advice. In preparing this communication, CPS International did not take into account the investment objectives, financial situation and particular needs of any person. As with any speculative mining company there are significant risks.
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