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, August 25, 2011 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.087 | 0.008 | 0.087 | 0.088 | 0.080 | 0.091 | 0.080 | 81,682,594 | |
1.100 | 0.015 | 1.065 | 1.110 | 1.085 | 1.150 | 1.085 | 691,115 | |
0.200 | 0.020 | 0.190 | 0.200 | 0.190 | 0.200 | 0.185 | 437,804 | |
0.480 | -0.015 | 0.480 | 0.490 | 0.500 | 0.500 | 0.480 | 283,888 | |
0.012 | -0.001 | 0.012 | 0.013 | 0.013 | 0.013 | 0.012 | 1,490,000 | |
0.094 | 0.007 | 0.093 | 0.095 | 0.090 | 0.094 | 0.085 | 3,888,194 | |
0.135 | -0.005 | 0.130 | 0.135 | 0.140 | 0.140 | 0.135 | 76,900 | |
0.980 | -0.005 | 0.965 | 0.980 | 0.985 | 1.000 | 0.970 | 715,387 | |
0.300 | 0.000 | 0.250 | 0.280 | 0.000 | 0.000 | 0.000 | 0 | |
0.048 | 0.001 | 0.048 | 0.049 | 0.049 | 0.051 | 0.048 | 6,565,390 | |
0.430 | 0.005 | 0.420 | 0.440 | 0.430 | 0.430 | 0.420 | 62,145 | |
20.610 | -0.700 | 20.400 | 20.700 | 20.250 | 20.740 | 20.150 | 2,782,276 | |
69.730 | 0.800 | 69.590 | 69.790 | 70.390 | 70.600 | 69.400 | 3,617,143 | |
38.610 | 0.400 | 38.500 | 38.620 | 38.680 | 38.810 | 38.400 | 12,074,978 | |
Source: asx.com.au
Rio Tinto boosts stake in Ivanhoe to 48.5 percent
August 24, TORONTO (Reuters) - Rio Tinto (RIO.AX) is raising its stake in Ivanhoe Mines (IVN.TO) by a further 2 percent by exercising its right to acquire shares in the exploration company led by well known mining financier Robert Friedland.
The Anglo-Australian mining giant said on Wednesday it now owns 48.5 percent of Ivanhoe common shares.
Rio Tinto has a right to boost its stake in Ivanhoe to up to 49 percent, under an existing deal between the two companies that are jointly developing the massive Oyu Tolgoi copper-gold project in Mongolia.
Rio Tinto said it would consider buying additional shares of Ivanhoe, depending on general economic conditions, Ivanhoe's business prospects and other factors.
Ivanhoe will issue 27.9 million new shares to a wholly-owned subsidiary of Rio Tinto. The price paid per share was C$18.98 for a total consideration of C$529.5 million, Rio Tinto said in a statement.
Shares of Ivanhoe were down 90 Canadian cents at C$19.72 on Wednesday on the Toronto Stock Exchange.
MMC closed up 0.95% to HK$8.5
MMC: INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2011
August 24, Mongolian Mining Corporation (HK:975) --
FINANCIAL HIGHLIGHTS
The Group’s revenue amounted to approximately USD136.2 million for the six months ended 30 June 2011, representing an increase of approximately USD48.5 million, or approximately 55.3% as compared to approximately USD87.7 million for the six months ended 30 June 2010.
The profit attributable to equity shareholders of the Company for the six months ended 30 June 2011 was approximately USD19.8 million, representing a change of approximately USD0.9 million, or approximately 4.2% as compared to approximately USD20.7 million for the six months ended 30 June 2010. The Company incurred approximately USD4.7 million one-off costs related to the acquisition of the entire issued share capital of QGX Coal Limited. In the period under review, approximately USD12.8 million costs incurred based on the changes in the provisions of Mongolian tax law related to value added tax (“VAT”) for mineral resources exploitation activities and introduction of additional progressive royalty rate.
The basic earnings per share attributable to equity shareholders of the Company amounted to approximately USD0.54 cents for the six months ended 30 June 2011, as compared to approximately USD0.69 cents for the six months ended 30 June 2010.
…
No immediate impact on Winsway's rating post 1H - Moody's
August 25 (ETNet) Moody's Investors Services says that Winsway Coking Coal Holdings Limited's (01733) financial results for 1H 2011 were generally in line with expectations, and sees no immediate impact on the firm's Ba3 corporate family rating and B1 senior unsecured bond rating.
The ratings outlook remains stable.
"The company continues to benefit from the burgeoning Mongolian coking coal industry," said Ken Chan, a Vice President and Senior Analyst at Moody's.
The adjusted gross margin in 1H 2011 improved to 23.9% from 21.2% a year ago, as it sold more Mongolian coal, which has higher margins, than seaborne coal.
"However, we expect severe competition to pressure Winsway's margin in the medium term," said Chan, adding, "Apart from growing its business to achieve economy of scale, the company's strategy to acquire upstream assets could partly mitigate such risk."
"Winsway's reported credit metrics -- LTM debt/EBITDA and LTM EBITDA interest coverage of 2.4x and 6.7x -- continue to position it well at the Ba3 rating," Chan added.
Moody's said Winsway's balance sheet liquidity remains healthy, with cash on hand of HK$5.8 billion, partially attributable to the unused proceeds from the issuance of bonds worth USD500 million (HK$3.9 billion) early this year.
However, the agency expects cash holdings will reduce in the near term as Winsway continues to invest in rolling stocks and logistic infrastructure. (KL)
Macmahon Holdings Named Preferred Contractor On Tavan Tolgoi
August 24, SYDNEY -(Dow Jones)- Australian construction group MacMahon Holdings Ltd. (MAH.AU) has been awarded a preferred contractor status for part of Mongolia's massive Tavan Tolgoi mining project, in a joint venture with Germany's BBM Operta Group, the company said Thursday.
The joint venture would start mining up to 15 million tons a year of coal from the project from the first quarter of 2012. State-owned Erdenes Tavan Tolgoi JSC owns the eastern part of Tavan Tolgoi, while the western blocs are being developed by a consortium of China's Shenhua Group, Peabody Energy Corp. (BTU), and a sub-consortium of Russian miners.
The massive Tavan Tolgoi project has an estimated 6.4 billion metric tons of coal reserves, making it the world's second-largest coal deposit after the Shengli field in China, according to data provider Raw Materials Group. It also has large quantities of coking coal, an essential ingredient in steelmaking.
MacMahon said contractual details will be finalized over the next few months.
Chief Executive Nick Bowen said the project award was an important foothold in Mongolia's burgeoning coal mining sector.
"The progression of the Tavan Togloi project now provides a solid foundation for MacMahon in its efforts to establish a long-term business in one of the world's largest emerging mining regions," he said.
No value for the contract was given. Contractors with preferred bidder status have been chosen as the most suitable candidate for a project, but haven't actually completed contracts with their clients.
Chinese steel producers hunting for coking coal
August 25 (China Daily) BEIJING - Chinese steelmakers are scrambling to buy coking coal mines in Mongolia, China's largest supplier of the fuel.
China is the world's biggest steel producer and needs the coke to keep its blast furnaces in operation.
State-owned steel makers, including Baosteel Group Corp and Jinan Iron & Steel Group Corp, are eyeing projects in Mongolia, which has vast quantities of untapped minerals, according to sources familiar with the situation.
Xinjiang Bayi Iron and Steel Co Ltd, a subsidiary of Baosteel, has a 10-year contract for supply of coking coal from Mongolia Energy Corp Ltd (MEC). Baosteel has also expressed an interest in buying a stake in MEC's coking coal project in the Khovd province in western Mongolia, the sources said.
In July, Jinan Iron & Steel and the Aluminum Corporation of China (Chinalco) signed contracts with Mongolia's State-owned operator, Erdenes Tavan Tolgoi LLC for coal supplies worth $250 million from deposits in the East Tsankhi area.
The sources said that both Jinan Iron & Steel and Chinalco are also looking to purchase mines in East Tsankhi.
"Mongolia has rich untapped reserves and the location is very attractive for Chinese companies," said Huang Shengchu, president of the China Coal Information Institute.
The Tavan Tolgoi deposit, which is only 270 kilometers from the Chinese border, is considered the world's largest untapped source of coking coal. Mongolia's National Mining Association expects coal production to increase to 60 million tons by 2015 from 22.5 million tons in 2010.
Tavan Tolgoi (TT) holds an estimated reserve of 6.4 billion tons of coal, including large amounts of coking coal.
While the Mongolian government will control of TT's East Tsankhi block, it announced in July that it had selected a consortium of Chinese, US and Russian companies to develop the West Tsankhi block.
Shenhua Group Corp Ltd, China's largest mining company by output, will have a 40 percent stake in the coalfield with the largest US coal producer Peabody Energy Corp holding 24 percent. The Russian Railway-led consortium will have a stake of 18 percent, and the Mongolians will hold the remainder.
However, the situation has been thrown into uncertainty after Mongolia's President Tsakhia Elbegdorj said on Aug 20 that the country was rethinking development plans for the mine in the light of negative public opinion.
Huang said the uncertainty over the West Tsankhi project will not deter China from seeking coking coal in Mongolia. Although China is currently more than 90 percent self-sufficient in the fuel, it will become increasingly dependent on imported resources, especially from nearby Mongolia, as a result of rising demand and the government's policy of protecting domestic supplies.
Mongolia Recognizes SouthGobi Resources' COO, Curt Church, With Rare and Highest Award
HONG KONG, CHINA--(Marketwire - Aug. 25, 2011) - SouthGobi Resources Ltd. (TSX:SGQ)(SEHK:1878) announced today that Mongolia has awarded Curt Church, COO, the award of Altan Gadas (Order of the Polar Star) "in recognition of his contribution to developing the mining sector in Mongolia and bilateral cooperation between Mongolia and Canada in the field of mining."
This award is the highest award bestowed on foreign nationals by Mongolia and can only be issued by decree of the President. It has been generally awarded to outstanding Mongolian nationals since 1936. Alexander Molyneux, President and CEO, said, "We are very proud of Curt who, with seven years experience in Mongolia, has now had his leadership and contribution formally recognized. This personal award reflects positively on the quality of all SouthGobi Resources people who have supported Curt's various contributions."
Mongolian nuke official fails to show – again
August 25 (news.mn) Reports continue to surface that Mongolia might become a repository for nuclear waste. A report posted on the website of the New York Times yesterday says the U.S. is considering “leasing” uranium from countries (including Mongolia), then returning the spent fuel to the country of origin.
Mongolia’s Nuclear Energy Authority was scheduled to discuss the controversial issue yesterday, but the meeting had to be cancelled because the head of the authority, S.Enkhbat, missed the meeting. This is the second time S. Enkhbat has failed to address the issue as scheduled.
This has angered Prime Minister S. Batbold, who said Mr. Enkhbat was not fulfilling his responsibilities.
CABINET BACKS PROJECT OF NEW RAILWAYS
August 25, Ulaanbaatar, Mongolia /MONTSAME/ The cabinet meeting held on Wednesday, August 24 discussed a draft project on new railway, and backed a technical and economic justification for the first and second phases of the railway construction which was reflected in the state policy on railways.
An order was given to Kh.Battulga, the Minister of Road, Transportation, Construction and Urban Development to implement measures of the project in a number of stages.
Furthermore, the Development Bank of Mongolia was allowed to tackle a financing of USD 55 million that is needed in the first turn for realizing the project within this year.
In frames of the project, railways will be constructed between Tavantolgoi and Sainshand (468 km), Sainshand and Khoot (450 km), Khoot and Choibalsan (155 km), Khoot and Nomrog (380 km), Tavantolgoi and Gashuunsukhait (267 km), and Nariinsukhait and Shiveekhuren (46 km).
It is calculated that the basic structure for one kilometer railway is cost USD 2.5-2.8 million. The technical and economic justification has been drawn by the McKinsey & Company, Inc consulting firm.
POTENTIAL OF AUTOROAD SECTOR TO BE IMPROVED
August 25, Ulaanbaatar, Mongolia /MONTSAME/ A middle-term program on improving potential of the autoroad sector was approved by the cabinet on Wednesday, August 24, in order to support another middle-term program called "New great construction" on renewing autoroads in the city and constructing 5,572 km paved-roads and 900 km autoroads between the city and aimags' centers.
The first program aims to increase capability of autoroad industry and human resource, to ensure readiness of usage of road network, to augment effectiveness of investments, and to strengthen the sector's organization. It is expected that the program would start from this year, and would be implemented completely by 2016 with various methods of financing such as the local budgets, the Fund of Road, non-refundable aid and soft-loans from international organizations and foreign countries, and other donations.
The Ministry of Road, Transportation, Construction and Urban Development explained a reason of realizing the program on improvement of potential of autoroads, and it considers that national companies of autoroads are unable to fully execute the road repairing and construction works yet because of lack of engineers and specialized workers.
Thus, it is needed to augment number of engineers by twice and specialized workers by at least 40 per cent. In addition to it, a proper mechanism is required for an investment policy and implementation of the project.
AUTO TRANSPORT AGREEMENT APPROVED (with China)
August 25, Ulaanbaatar, Mongolia /MONTSAME/ The Cabinet meeting on Wednesday approved an auto transport agreement between Mongolia and China.
According to the revised agreement, authorized organizations of the two sides are entitled to coordinate routes for passengers and freight transport.
Thereby, conditions are created to carry out transportation deep into the territories of the two countries through the established routes.
The agreements states the transportation will be executed by transporter endowed with a right to implement international transportation.
CABINET MEETING IN BRIEF
August 25, Ulaanbaatar, Mongolia /MONTSAME/ The cabinet has discussed and backed the budget clarification for 2011 and the budget for 2012. Reports on the related issues will be given by S.Bayartsogt, the Minister of Finance.
- The state administrative organizations received 19,790 letters on requests and complaints in the second quarter of this year. 96.8 per cent of the matters have been tackled. The local governance organizations have received 384,771 letters, and 97.6 per cent of them have been tackled.
- The cabinet has considered as necessity to have a delegation led by M.Enkhbold, the Deputy Premier participate in the 7th exhibition of Trade and Investment of Northeast Asia to be held September 6-11 in Changchun, China. The Mongolian side will deliver a report on investment environment in Mongolia and on the economic ties with Northeast Asian countries, and will introduce the biggest projects.
Mongolia: enter the yurt
August 25 (FT Blog) A rare opportunity for investors to invest in Mongolia outside its big natural resources companies comes with a foreign-run conglomerate involved in everything from real estate and cement to financial services and transport.
Asia Pacific Investment Partners, controlled by American businessman Lee Cashell, hopes to raise $30m through a placement of stock ahead of an IPO which could come next year.
APIP plans to use the funds raised now from institutional investors in its operations in Mongolia – to expand a fast-expanding property business and boost production at a cement factory: it intends to invest money from the planned IPO to develop a modest small business loan company and, later, develop it into a bank. Big plans, big ambitions.
Speaking to beyondbrics during a visit to London where he was drumming up investor interest, Cashell gives his pitch: Mongolia is a land of opportunities.
Cashell cites his own company’s example: founded in 2001 with starting capital of US $ 30,000, the conglomerate, which is audited by PwC, saw 2009 revenues of US$3.5m and earnings before interest, depreciation, taxes and amortisation (Ebitda) of US$1.2m, 2010 revenues of US$15.3m with an Ebitda of US$7.8m. According to a recent audit revenues for 2011 are expected to be US$25m, with Ebitda of US$20m.
Cashell says much of the growth opportunity for APIP is in its property-related businesses which include a cement factory, real estate agency, and property development company. A large part of the private investment raised will go towards his cement business, Asian Cement.
He tells beyondbrics he bought the cement factory three years ago for approximately US$3m when the local price of cement was US$60-80/tonne. Today Asian Cement is selling cement at a local market price of US$150/tonne.
The price of property in Ulan Bator has also sky-rocketed, Cashell says. For example, at an apartment building which APIP sold to Property Frontier, a London broker, called The Regency Residence, individual flats which sold for $800 per square metre off-plan in 2007 are now being sold for $2200 a square metre in the secondary market to wealthy Mongolians.
All of which is part of a bigger picture. “Even in stormy markets, if you have a good story, there are firms out there that still see it [the investment] as a good story,” says Cashell. He claims that among frontier markets, Mongolia comes out on top for hedge funds because of its high economic growth (with the IMF forecasting 9.8 per cent GDP growth for 2011), a favourable tax regime and parliamentarian democracy.
Cashell says he’s received US$10m in commitments to invest in APIP from high net-worth individuals, and APIP is in negotiations with six hedge funds. His next stops will be New York and San Francisco.
But Mongolia is not for the faint-hearted.
The Mongolian Stock Exchange made headlines among investors last year when it was world’s best-performing equity market with a 121 per cent gain in local currency terms. It climbed a further 55 per cent at the start of the year until the end of February. But since then it is down by 36 per cent. That compares with a 16 per cent decline, year-to-date, for the MSCI frontier market index (which does not include Mongolia).
APIP has also outlined several challenges ahead including 2012 elections, inflationary pressures (especially food), and a shortage of skilled labour.
Those joining Cashell in Ulan Bator can expect an unpredictable ride.
Mongolian PM sees "golden era" for Mongolia-China ties
ULAN BATOR, Aug. 25 (Xinhua) -- Mongolian Prime Minister Sukhbaatar Batbold has said bilateral ties between Mongolia and China are entering a "golden era".
Batbold made the remarks Wednesday at a meeting with Zhou Yongkang, a senior official of the Communist Party of China (CPC). Batbold said the neighboring countries of China had benefited greatly from China's huge progress in economic and social development since it adopted the reform and opening-up policy more than 30 years ago.
Developing the Mongolia-China strategic partnership was one of the priorities of Mongolia's foreign policy, he said.
The prime minister thanked China for supporting Mongolia's economic and social development, especially the assistance it provided to Mongolia in improving transportation, education, sports facilities and housing programs. He said Mongolia welcomed more Chinese enterprises to invest in his country.
Zhou Yongkang, a member of the Standing Committee of the Political Bureau of the CPC Central Committee and Secretary of the Commission for Political and Legal Affairs of the CPC Central Committee, said China, Mongolia's biggest trade partner and investor for more than a decade, was happy to witness the recent significant progress in China-Mongolia ties.
Zhou said Batbold's June visit to China was a milestone in bilateral relations, during which Batbold and his Chinese counterpart, Wen Jiabao, jointly announced a strategic partnership between the two countries.
Zhou said China shared a 4,700 km-long land border with Mongolia and attached great importance to China-Mongolia relations. He made a four-point proposal for promoting bilateral ties.
Firstly, the two countries should maintain high-level exchanges, strengthen strategic communication, enhance political mutual trust and respect each other's social system and way of development. China appreciated Mongolia's respect and support on China's core interests and believed Mongolia would continue to back China's stance, Zhou said.
Secondly, the two sides should implement the consensus reached by leaders of the two countries, pushing forward the development of mineral resources, infrastructure construction and financial cooperation to consolidate their pragmatic cooperation, he said.
Thirdly, the Inner Mongolia Autonomous Region in north China could bridge China and Mongolia, deepening cooperation in agriculture, education and health, Zhou said.
Lastly, he suggested both sides conduct closer cooperation in security and law enforcement to fight "the three evil forces" of terrorism, separatism and extremism, strengthen border management, crack down on drug trafficking and cross-border crimes and prevent and reduce disasters.
After the meeting, Zhou and Batbold attended the signing ceremony of a series of bilateral documents on cooperation covering trade, finance, technology, education and culture.
Later Wednesday, Zhou met with Damdin Demberel, chairman of the Mongolian parliament, and Ukhnaa Khurelsukh, secretary general of the ruling Mongolian People's Party.
Mongolia is the last leg of Zhou's five-nation Asian tour, which has also taken him to Nepal, Laos, Cambodia and Tajikistan. Zhou will wrap up his official goodwill visit to Mongolia on Friday.
<Mogi & Friends Fund A/C>
-1.9%
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.
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Mogi
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"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
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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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