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Cabinet: Erdenes Tavan Tolgoi to Triple List on MSE, LSE, HKEx
Ulaanbaatar, Mongolia, November 9 /MONTSAME/ The working group presented ways of selling shares of “Erdenes tavan tolgoi” company at the domestic and foreign markets, choices of Stock exchanges, company structure at the Cabinet meeting on Wednesday.
It has been considered right to sell a part of the shares through Stock exchanges of Mongolia, of London and of Hong Kong and to register the company, who sells the shares, in Great Britain.
If to fit there into FTSE index, a demand will grow, as expected, and for this, a company must be created and registered in Great Britain.
The Cabinet obliged the authorities of the State property committee and “Erdenes MGL” company to work in this direction.
The “Erdenes tavan tolgoi” company's structure will be changed and related laws and rules will be amended.
Main advisors and organizers of this issue are Deutsche bank of Germany, Goldman Sacs of the United states America, BNP Paribas of France, Macquarie bank of Australia.
There are other international auditors and tax advisers who are cooperating in this matter. A key document on selling the shares has been elaborated as well.
Hunnu: Suspension from Official Quotation and Compulsory Acquisition Notice
November 9, Hunnu Coal Limited (ASX:HUN) --
Link to Compulsory Acquisition Notice
SouthGobi Resources Q3 Profit More Than Doubles
November 9 (RTTNews) - Coal mining company SouthGobi Resources Ltd. (TSX:SGQ, HK:1878) Wednesday reported net income for the third quarter of $55.9 million or $0.31 per basic share, rising from $27.5 million or $0.15 per basic share in the year-ago quarter.
On average, 4 analysts polled by Thomson Reuters expected earnings of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.
On a diluted basis, loss for the quarter was $0.02 per share, narrower than the loss of $0.08 per share in the year-ago quarter.
The net income in the quarter was due primarily to the $62.1 million gain on the fair value change of the embedded derivatives in the China Investment Corporation convertible debenture. This compares to a gain of $49.8 million in the third quarter of 2010 on the fair value change of the embedded derivatives in the CIC convertible debenture.
Net loss excluding specified items for the quarter narrowed to $3.8 million from loss of $23.6 million last year.
The company's income from mine operations is composed of revenue and cost of sales and relates solely to the Mongolian Coal Division. Income from mine operations for the quarter increased to a record level of $20.6 million compared to a loss from mine operations of $6.7 million last year.
Revenues for the quarter grew to $60.5 million from $6.6 million in the year-ago quarter.
Revenue was negatively impacted by an increase in the average proportional royalty payable due to the methodology being applied to royalties basing fees on benchmark price levels set arbitrarily by the Mongolian government. The effective royalty for the quarter was 16 percent compared to 5 percent last year.
The company owns three coal projects in Mongolia, including the Ovoot Tolgoi Mine, a producing mine; and two development projects, the Soumber Deposit and the Ovoot Tolgoi Underground Deposit. During the quarter, the company was awarded the tender to construct a paved highway from Ovoot Tolgoi to Mongolia-China border with consortium partner NTB LLC.
The revenue for the quarter represented the highest quarterly revenue since the commencement of mining operations. Average realized selling price for the quarter increased 45 percent to $54 per ton.
In the Raw semi-soft coking coal category, Raw coal production for the quarter surged to 0.55 million tons from 0.18 million tons last year. Sales increased to 0.66 million tons from 0.11 million tons last year.
Raw higher-ash coal production for the quarter increased to 0.50 million tons from 0.39 million tons last year.
Total Raw coal production for the quarter more than doubled to 1.25 million tons from 0.57 million tons in the year-ago quarter. The company sold 1.37 million tons of coal at an average realized selling price of approximately $54 per ton, compared with sales of 0.19 million tons of coal sold at an average realized selling price of approximately $37 per ton in the year-ago quarter.
Direct cash costs of product sold for the quarter increased to $22.64 per ton from $18.59 per ton in the year-ago quarter, due to increased screening by the company of its raw higher-ash coals and due to general economic factors including the strengthening of the Mongolian tugrik and the rate of inflation in Mongolia.
The company views market conditions for the fourth quarter of 2011 as similar to those in the third quarter and has contracted coal at similar or moderately higher prices for the period. However, the company said it is more difficult to forecast volumes for the period.
SGQ.TO is currently trading at C$8.34, down C$0.19 or 2.23%, on the Toronto Stock Exchange. Over the past year, the stock traded in a range of C$5.54 - C$16.64.
ERD has not officially made an announcement on this
ERDC issuing more shares on Toronto exchange
November 8 (news.mn) Erdene Resources Development Corp. (ERDC) (TSX:ERD) announced on Monday that it is issuing more shares on the Toronto Stock Exchange.
Kris Kouan, the deputy director of ERDC in Asia, informed Mongolian investors about the share issue, as well as some of the corporation’s other projects.
ERDC will issue shares worth USD 2 million, with the capital raised to be spent in exploration. The price of a new share will be discounted by 9.3 percent of the average closing price from November 1 to 10.
ERDC has been active in Mongolia since 1994, and has developed a copper and molybdenum deposit mine in the Zuunmod area of Bayankhongor aimag. Besides, ERDC has discovered a copper and silver deposit mine in the area of Khuviin Khar nearby Zuunmod, and is exploring for other mines.
Ivanhoe Energy reports third quarter 2011 financial results and operating highlights
CALGARY, Nov. 9, 2011 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) today reported financial results and operating highlights for the third quarter of 2011. Ivanhoe Energy has filed its quarterly financial report on Form 10-Q with the United States Securities and Exchange Commission and its interim financial statements with the Canadian Securities Administrators for the period ended September 30, 2011.
"Our management team continues to make progress in each of our projects," said President and Chief Operating Officer, David Dyck. "Dagang is producing, conversations with potential Heavy-to-Light (HTLTM) partners are advancing and we are taking thoughtful steps in Ecuador, Mongolia, China and with the Tamarack project in Canada."
Third quarter financial summary
| | | | | | |
(US$000s, except per share amounts) | Three months | | | Nine months | ||
2011 | 2010 | | | 2011 | 2010 | |
| | | | | | |
Net loss | (4,157) | (9,605) | | | (19,394) | (7,151) |
Net loss per share, basic and diluted | (0.01) | (0.03) | | | (0.06) | (0.02) |
| | | | | | |
Cash and cash equivalents (end of period) | 58,168 | 93,098 | | | 58,168 | 93,098 |
Cash flow used in operating activities | (5,214) | (7,913) | | | (18,678) | (19,620) |
| | | | | | |
Oil revenue | 10,769 | 4,177 | | | 28,277 | 15,554 |
Capital expenditures | 16,843 | 17,475 | | | 48,078 | 53,850 |
Oil revenues were $10.8 million in the third quarter of 2011 compared to $9.4 million in the second quarter. This increase was due to higher production volumes at Dagang and stronger realized prices. The net loss in the nine months ended September 30, 2011 was $19.4 million compared to a $7.2 million net loss in the comparative period of 2010. Although oil revenue has increased in 2011, net income was impacted by higher operating and general and administrative expenses. Operating expenses were $5.5 million during the third quarter of 2011, compared to $5.3 million in the second quarter of 2011. These expenses were primarily from China and included an increased windfall levy, administered by the People's Republic of China, following the rise in oil prices. General and administrative expenses in the nine months of 2011 were $37.4 million, compared to $28.4 million in the same period of 2010. This increase was due to greater professional fees (legal and engineering) and additional staff, office and travel costs required to advance the various projects.
…
Subsequent events
…
Nyalga - Mongolia
On October 27 the Company announced the successful drilling of its second exploration well on the Nyalga block in east-central Mongolia, on schedule and on budget. Oil staining, fluorescence and increases in background gas were observed in several sand sections, which are positive indicators of the presence of oil. The logs are currently being reviewed, with results expected before the end of 2011. The well will be tested in the first half of 2012.
…
C@: Prospectus
November 9, C @ Limited (ASX:CEO) --
IARUDI Consulting LLC commences work with Erdenes Tavan Tolgoi (ETT)
November 9 (IARUDI) IARUDI Consulting LLC (“IARUDI”) announces it has commenced work with Erdenes Tavan Tolgoi (“ETT”), the Mongolian company that controls the world’s largest undeveloped coking coal mine.
Based in Ulaanbaatar Mongolia, IARUDI will be assisting ETT with management reporting, technical accounting and IFRS compliant reporting. IARUDI joins the list of advisors to ETT which includes Goldman Sachs, BNP Paribas, Deutsche Bank, Macquarie, Norton Rose and PriceWaterhouseCoopers.
“We are thrilled to be working so closely with ETT here in Mongolia. ETT is set to have an enormous impact on the Mongolian economy and it is an excellent opportunity for us to play a part in its development”, said Chris Hurd, CEO of IARUDI Consulting.
“Clearly this establishes IARUDI as one of the premier in-house accounting firms in Mongolia and it is a pleasure to work with a company with such fantastic potential and people” said Peter Rhodes of IARUDI.
About IARUDI Consulting LLC
IARUDI Consulting is a Mongolian consulting firm based in Central Tower, Ulaanbaatar. The firm provides professional accounting and compliance services to foreign clients looking to become established in the local marketplace and Mongolian companies looking to expand or list on international stock exchanges.
The team is led by two fully qualified Chartered Accountants who began their careers with Ernst & Young in London and South Africa and is supported by an excellent team of Mongolian professionals. During their time at Ernst & Young, Peter and Chris worked on audit, consulting and IPO engagements with companies from Australia, Brazil, Ghana, Kazakhstan, Nigeria, South Africa, Eastern Europe, Zambia and the UK. They have an in depth knowledge of processes and controls, IFRS reporting and conversion, IAS audit requirements as well as finance function structures and best practice management reporting within complex organisations.
Government repeals excise tax on diesel
November 9 (news.mn) At Wednesday’s Government meeting, members decided to repeal the excise tax on diesel fuel because Russia has increased its tax on the fuel by USD 70 per ton.
By repealing the excise tax, the Government hopes the price of diesel fuel will not rise in Mongolia.
Mineral Resources and Energy Minister D.Zorigt stated that diesel will continue to be sold at its current price. But he said the price of AI-92 benzene will increase by MNT 30 per liter. D.Zorigt said the ministry had requested petroleum importers not to increase the price of AI-92 benzene.
Ministry plans to start petroleum reserve
November 9 (news.mn) The Ministry of Mineral Resources and Energy is planning to start a MNT 28 billion petroleum reserve in 2012. The move comes as petroleum importers and economists are warning of another financial crisis early next year.
It’s also hoped the move will help fight inflation, since the prices of 215 consumer goods surveyed (out of 287) have increased over the past year.
The ministry plans to use MNT 5 billion from the 2011 Risks Fund to buy petroleum.
Standing committee discusses outsourcing center
November 10 (news.mn) The Standing Committee on Economics discussed the establishment of an outsourcing center in Mongolia.
A 2008-2012 government program aims to establish an outsourcing sector on Mongolia comprising USD 150 million and 10,000 employees. Along those lines, the Indian government has offered Mongolia a USD 20 million loan to establish a high-tech outsourcing center similar to those in India.
Also an outsourcing unit has been founded at the Labor Exchange and research on outsourcing has been conducted.
But some members raised concerns about security issues, training, and technology.
The committee head noted that the Government will submit a draft law on cyber security to Parliament, and a USD 60 million loan will be postponed due to a delay in loan repayment.
GEOGRAPHICAL INFORMATION FUND WILL BE CREATED
Ulaanbaatar, Mongolia, November 9 /MONTSAME/ The Cabinet meeting on Wednesday obliged some Ministers and heads of agencies to create a geographical information fund based on results of entities and organizations censuses and to deliver it users within this month.
They will also renovate the state registration information fund on legal person, drill national classifications and codes, provide interconnections of information funds, check those entities and organizations not involved in the census, accord their registration with the laws, work out proposals on amending related laws for improving a legal person's state registration system.
The organized this year census has counted 66.5 thousand entities and organizations; of them, nearly 69 percent or 45.6 thousand are located in Ulaanbaatar city.
SOFT LOAN OF 40 MILLION EURO TO COME FROM AUSTRIA
Ulaanbaatar, Mongolia, November 9 /MONTSAME/ Austria has decided to give Mongolia a soft loan of 40 million euro for two years. The general agreement on the financial cooperation, which is to be established between Governments of Mongolia and Austria, has been supported at a meeting of parliamentary Standing committee on economy.
Mongolia requested Austria to include it in soft loans in 1991. Only in the last year Austria considered this suggestion and drew this decision.
The agreement is valid for two years, a term of the soft loan of 40 million euro will be discussed. A yearly interest stands at 0.4 percent. According to the two sides' first agreement, the loan will be spent for health and infrastructure spheres. In the health section, for example, ten million euro are needed to buy four kids of equipment for the National oncology center.
During the meeting, which ran on November 8, the gathered supported this plan, but decided that a detailed plan is needed for how the money would be spent in infrastructure. The financial cooperation agreement has been made between the governments of Mongolia and Austria. If parliament ratifies it, a new agreement will be established with Austria at the government level.
Mongolia to distribute MNT 2.4 trillion to citizens
November 9 (news.mn) Parliament’s Standing Committee on Budget discussed next year’s Human Development Fund (HDF) allowance.
The MPP and DP will fulfill their 2008 election promise, meaning MNT 2.4 trillion will be distributed to citizens in 2012. According to Finance Minister S.Bayartsogt’s speech, the HDF will allocate an allowance of MNT 128,000 to every citizen by July 2012.
Additionally, women 55 and over, men 60 and over, and disabled people will receive a one-time allowance of MNT 1 million, which some 600,000 people will collect. S.Bayartsogt said the remaining 2.2 million citizens will receive their choice of MNT 1 million in cash or an equivalent in shares in Erdenes MGL LLC and 15 other mining companies. The Government predicts half the citizens will take the cash and half will take the shares.
S.Bayartsogt noted that political parties have agreed to not promise citizens cash in the 2012 election.
Government to spend MNT 1.5 billion to repair environmental damage
November 9 (news.mn) The Government has decided to allocate more than MNT 1.54 billion from the Reserve Fund to repair environmental damage caused by gold mining operations in banned areas of river and forest basins.
The amount covers travel expenses to 12 aimags where the damage has occurred, environmental repairs, and the closing of 246 mines operating in banned areas.
Officials discussed the recovery plan at a meeting of the Nature, Environment Estimation Commission. Relevant organizations also participated in the discussion of how to repair the damaged areas.
State budget to be reduced in 2013
November 9 (news.mn) The Standing Committee on Budget discussed several budgetary issues on Tuesday and decided to forward them to Parliament.
According to a statement by Finance Minister S.Bayartsogt, the 2012 budget is the first to be drafted after passage of the law on budget stability.
O.Chuluunbat criticized the rising number of state employees. O.Chuluunbat said that number has grown by as much as 50,000 in recent years, and state spending has increased as a result.
S.Bayartsogt said the state general budget will be reduced by MNT 1.5 trillion in 2013, in accordance with the law on budget stability and the end of “allowance” payments to citizens. Also, the salaries of state workers are not expected to rise in 2013 as they will in 2012.
Golomt Bank Secures Ratings from Two Leading Agencies
Golomt Bank Becomes First Mongolian Bank to Secure Ratings from the Two Leading Global Credit Rating Agencies
November 9 (news.mn) Golomt Bank is pleased to announce that it has become the first Mongolian bank to be assigned ratings from the world’s two leading global credit rating agencies: Moody’s and Standard & Poor’s. Golomt Bank has achieved the highest issuer ratings of Ba3 in the Mongolian banking sector from Moody’s thereby exceeding Mongolia’s sovereign rating of B1, and ranking level with the sovereign rating of BB- from Standard & Poor’s. Both outlooks are defined as stable.
Moody’s has assigned the following ratings:
D- Bank Financial Strength Rating (BFSR)
Ba3 Global local currency (GLC) long-term deposit ratings
B2 Foreign currency long-term deposit ratings
Ba3 Foreign currency long-term issuer rating
Ba3 Global local currency long-term issuer rating
Ba3 Foreign currency senior unsecured debt rating
In assigning their rating Moody’s stated “The BFSR of D-…. reflects the bank’s strong franchise in Mongolia, as well as its financial fundamentals,” and cited the Bank"s financial strength “including a Tier 1 capital ratio of 11.9%, the highest among the three Group 1 Mongolian banks as defined by The Bank of Mongolia as of June 2011”.
Standard & Poor"s has assigned the following ratings:
BB- Long Term counterparty credit rating
B Short Term counterparty credit rating
Golomt Bank is the first Mongolian bank to be rated by Standard & Poor’s who specifically cite the Bank’s:
· good market position;
· good position in card services, international trade finance and treasury services;
· strong business growth strategy;
· prudent dividend policy;
· proactive capital management;
· total regulatory capital adequacy ratio of 16.1%;
· more diversified business mix than its local peers;
· higher individual share of the credit card and foreign exchange and trade business;
· focus on traditional banking business;
· more prudent underwriting standards than its local peers;
· low non-performing loan ratio of 2% in 2010;
· more diversified revenue mix compared to local peers;
· loan to deposit ratio of 60%;
as well as Mongolia’s strong economic growth prospects. These are already evident from the country’s 16.7% rate of GDP growth in the first three quarters of 2011, one of the highest in the world.
The assignment of these ratings follows receipt by Golomt Bank of the Euromoney Awards for Excellence 2011 and recognition of the Bank ranking 10th in the world measured in terms of Tier 1 Capital growth of the leading banks outside the Top 1000 according to The Banker in August 2011.
As at 30th June 2011, according to the Condensed Financial Statements reviewed by Ernst & Young Mongolia Audit LLC, Golomt Bank’s total risk adjusted capital ratio of 16.1% constituted the highest among Mongolia’s leading banks, whilst also reflecting the most efficient capital structure with the highest level of Tier 2 capital.
World Bank: Mongolia Quarterly Economic Update - November 2011
November 9 (World Bank) --
EXECUTIVE SUMMARY
Real sector developments
· The economy grew at a furious pace in the third quarter with data showing GDP growth of 20.8 percent year-on-year (yoy), following an equally remarkable outturn of 17.3 percent in Q2.
· There are growing fears of another construction bubble fuelled by the inflow of money into the economy from currently high mineral prices, similar to the previous boom in 2004-08.
Labor Markets and Poverty
· Labor force surveys (LFS) show that unemployment has been gradually trending down, although the overall level is still high at around 9 percent.
· Real wages in informal markets are decreasing as inflation picks up. The October survey results from selected informal labor markets indicate that on average real wages fell since the July survey, as rising inflation is eroding purchasing power.
Inflation
· With food prices and government spending increasing, inflation could rise further.
· September data show headline inflation accelerating to 11.9 percent yoy in Ulaanbaatar, up from 9.9 percent the previous month.
· Rising food prices hit the urban poor (roughly 22 percent of the UB population) extremely hard, as the poor spend most of their income on food, mostly meat.
Fiscal developments
· 2011 budget outturns are in good shape, supported by mineral sector revenues and a booming economy.
· But spending is at record levels, spurred by rising expenditures on cash handouts.
· The 2011 budget amendment aims to increase expenditures beyond the already substantial increase envisaged in the original 2011 budget.
· But the budget amendment is inconsistent with the Medium-Term Budget Framework.
· The 2012 Budget proposes raising spending (mostly on wages and transfers) by 74 percent over the original 2011 Budget. It ramps up spending on large public works projects but under-prioritizes the maintenance of existing public infrastructure
· Mongolia’s universal cash transfers will be replaced by a system of proxy means tested benefits targeted to the poorest households.
External sector
· The trade deficit has widened to record levels as mining related equipment imports have surged.
· The Mongolian Togrog (MNT) has depreciated somewhat against the US$ since mid-August. This was in line with other currencies in the region due to a rising global risk aversion. The depreciation has been relatively small, as FDI (foreign direct investment) inflows into the economy to develop the Oyu Tolgoi mine remain strong.
· International reserves of the Bank of Mongolia declined by about 2 percent from an all time high of US$ 2,460 mn in August, to US$ 2,407 mn.
Banking sector
· MNT and US dollar deposits reached new peaks and credit grew at a record pace.
· Banks are in a stronger position compared to 2008-09 with regard to capital buffers. That said the central bank needs to remain vigilant with regard to financial sector stability on a number of counts.
· Meanwhile the loan-to-deposit ratio (excluding government deposits) has been steadily increasing since the start of the year, and at close to a 100 percent, indicates one source of potentially growing liquidity risks.
· With credit growing as fast as we have seen prior to the last crisis, it is critical that the Bank of Mongolia enforces full compliance of Mongolian banks with current prudential norms, particularly with respect to having adequate capital buffers to absorb the losses from current and possible future NPLs (non-performing loans).
Economic outlook
· The economic rebound in recent quarters has been stronger than expected and the economy is showing signs of overheating. The economy is already running at capacity, driven by the booming mining sector. Although medium term prospects are bright, in the near term the country remains at risk of repeating the boom-bust cycle of the past decade.
· Public sector spending remains strongly pro-cyclical, supported by rising mineral and non-mineral revenues and the government is choosing to mostly spend rather than save windfall receipts.
· The global economic climate remains extremely uncertain as the sovereign and banking sector debt crisis in the euro-zone drags on. These increased global risks make Mongolia enter a phase reminiscent of 2008. The current budget proposals set Mongolia up for a replay of the 2006-8 boom years, leaving it vulnerable to a bust similar to the one that occurred in 2008-9.
· Accordingly, pro-active, prudent and risk-averse economic management is now needed more than ever, as the economy shows signs of overheating while global risks are rising, and mineral prices are falling.
Mongolia: Mineral Wealth Set to Transform Country into “Minegolia”
November 8 (EURASIANET.org) This is the time of year when blasts of Arctic air start sweeping across Mongolia’s steppe, ushering in the long, hard winter. It’s when many, especially those who adhere to traditional nomadic rhythms of life, hunker down until spring. But this year, there is an unusual air of expectancy amid the deepening chill – a mood borne by the prospect of windfall profits generated by the country’s mining sector.
A nation of just over 3 million, where herding and agriculture have long been the dominant features of the economy, Mongolia is on the cusp of becoming a global financial supernova. Experts estimate that the country possesses as much as $1 trillion-worth of untapped precious metals and minerals. That works out to potentially over $333,333 per every man, woman and child in the country.
Mongolia entered 2011 with a 6.7-percent economic growth rate at a time when most national economies were struggling with ongoing global financial uncertainty. Growth this year could hit 14 percent, according to an Asian Development Bank estimate, while other international forecasters put the figure at 20 percent. Some even contend that if Mongolia’s informal economy is taken into account, the growth rate could approach 40 percent.
At present, a major source of income is the vast Tevan Tolgoi coal mine. Another profit surge is expected to come from an enormous mining extraction complex in the Gobi Desert known as Oyu Tolgoi, a joint venture involving the Mongolian government, Rio Tinto Mining, a British company, and Ivanhoe Mines, based in Australia. The Oyu Tolgoi mine is estimated to have a lifespan of 50 years after it goes into operation in 2013 and is projected to churn out at least 3 percent of annual global copper production during that time frame. If all goes according to plan, it will generate $5 billion per year for half a century, according to James Passin, Manager and Co-Founder, Firebird Management, LLC, a firm that operates 10 funds that specialize in investment opportunities in the formerly Communist countries of Eurasia.
Mongolia is also the site of major gold deposits, including at Oyu Tolgoi. The country additionally possesses large reserves of uranium and coking coal, which the country hopes to exploit using new liquification technologies.
With the prospect of vast amounts of money pouring into government coffers and the Mongolian economy, government officials are feeling pressure to develop policies that ensure long-term stable growth. Prime Minister Batbold Sukhbaatar shared his vision of what his country will do with the windfall during an October 28 forum organized by the Asia Society in New York. Batbold said his government has devoted time to discerning the best practices employed by other resource-rich states.
“We don’t want to reinvent the wheel,” Batbold said, referring to government efforts to steer Mongolia clear of so-called “Dutch disease,” a resource curse that has plagued other mining- and energy-export-oriented economies in the past. “We have studied the exceptions of Norway, Canada, also Australia,” Batbold noted.
“We’d like to be a progressive government,” the prime minister continued, emphasizing his country’s human development fund, which is meant to provide funding to citizens for education, housing, pensions and job training. He also pointed to Mongolia’s stability fund, a piggy bank for less prosperous times down the road.
Batbold said Mongolia was “at a critical stage of its development,” acknowledging that inflation is already a troubling issue. He pointed out that the country is totally dependent on oil and petrol imports, a vulnerability that can cause volatility in consumer costs. The country also is set to experience a surge in disposable income. “Even though we have this important and promising income [from the mining sector], … we need to deal with growth carefully in order to avoid [overheating] the economy,” Batbold said. “This is a topic we need to focus on.”
In addition, the government must wrestle with questions about environmental protection. Rapid economic development has already caused degradation to water supplies and forests. The prime minister indicated that improved enforcement of existing legal protections, combined with an effort to establish national parks that are off-limits to development, can help alleviate the problem. He added that the government, moving forward, will be paying close attention to the environmental dimension of economic development.
Investor confidence in Mongolia has rallied in recent weeks following a government commitment not to seek a renegotiation of a 2009 agreement covering the development of the Oyu Tolgoi copper mine. Prior to the early October announcement, officials in Ulaanbaatar had expressed a desire to revise the pact, apparently with an eye toward increasing the state’s stake in the project. Speaking at the Asia Society event, Rio Tinto CEO Andrew Harding lauded Mongolian officials for “reaffirming the nature and sanctity of the [2009] investment agreement.”
At present, among investors there would seem to be boundless optimism about Mongolia. Passin, the fund manager, suggested that current reserve estimates of Mongolia’s mineral wealth may represent just the tip of the iceberg. “We think modern exploration has just scratched the surface,” he said.
Table: Mongolia Related Stocks (Source: Bloomberg)
Name | Symbol | $ | Price | Change | +-% | Open | High | Low | Volume | Time | % YTD | % 12 m | |
Indices | ASX 200 | 4,346.10 | 52.30 | 1.22% | 4,310.70 | 4,365.00 | 4,310.70 | - | 9-Nov | ||||
Nikkei 225 | 8,755.44 | 99.93 | 1.15% | 8,724.60 | 8,762.98 | 8,678.78 | - | 9-Nov | |||||
Hang Seng | 20,014.43 | 335.96 | 1.71% | 20,067.38 | 20,173.14 | 19,967.17 | - | 9-Nov | |||||
FTSE 100 | 5,460.38 | -106.96 | -1.92% | 5,567.34 | 5,615.84 | 5,426.25 | - | 9-Nov | |||||
TSX Composite | 12,156.22 | -332.63 | -2.66% | 12,314.61 | 12,437.17 | 12,156.10 | - | 9-Nov | |||||
S&P 500 | 1,229.10 | -46.82 | -3.67% | 1,275.18 | 1,275.18 | 1,226.64 | - | 9-Nov | |||||
ASX | Aspire Mining | A$ | 0.395 | 0.015 | 3.95% | 0.395 | 0.4 | 0.38 | 1,444,962 | 9-Nov | -17.71% | 21.54% | |
Blina Minerals | A$ | 0.013 | 0.001 | 8.33% | 0.012 | 0.013 | 0.012 | 871,867 | 9-Nov | -13.33% | 0.00% | ||
C@ | A$ | 0.057 | 0 | 0.00% | 0.057 | 0.058 | 0.056 | 610,607 | 9-Nov | 103.57% | 171.43% | ||
General Mining | A$ | 0.072 | -0.001 | -1.37% | 0.072 | 0.072 | 0.072 | 12,000 | 9-Nov | -40.00% | -56.36% | ||
Guildford Coal | A$ | 0.92 | -0.02 | -2.13% | 0.945 | 0.945 | 0.9 | 1,034,785 | 9-Nov | 26.03% | 61.40% | ||
Haranga Resources | A$ | 0.23 | 0.01 | 4.55% | 0.23 | 0.24 | 0.23 | 161,404 | 9-Nov | -64.06% | |||
Hunnu Coal | A$ | 1.79 | -0.03 | -1.65% | 1.805 | 1.805 | 1.79 | 18,573 | 9-Nov | 34.08% | 64.22% | ||
Mongolian Res Corp | A$ | 0.125 | -0.015 | -10.71% | 0.14 | 0.14 | 0.125 | 256,500 | 9-Nov | -70.93% | |||
Robe Australia | A$ | 0.012 | 0 | 0.00% | 0.012 | 0.012 | 0.012 | 175,000 | 9-Nov | 28.34% | 56.86% | ||
TVN Corp. | A$ | 0.055 | -0.001 | -1.79% | 0.056 | 0.056 | 0.055 | 3,547,256 | 9-Nov | 450.00% | 450.00% | ||
Voyager Resources | A$ | 0.077 | 0.006 | 8.45% | 0.072 | 0.077 | 0.072 | 6,287,625 | 9-Nov | 43.59% | 98.82% | ||
Xanadu Mines | A$ | 0.41 | -0.015 | -3.53% | 0.42 | 0.42 | 0.41 | 322,186 | 9-Nov | -27.43% | |||
MSE A Board | Aduunchuluun | MNT | 7,900 | 50 | 0.64% | 7,800 | 7,900 | 7,800 | 672 | 9-Nov | -1.25% | 102.56% | |
APU | MNT | 3,200 | 40 | 1.27% | 3,160 | 3,200 | 3,150 | 3,367 | 9-Nov | 60.80% | 89.35% | ||
Atar Urguu | MNT | 38,500 | 0 | 0.00% | 38,500 | 38,500 | 38,500 | 0 | 4-Nov | 113.89% | |||
Baganuur | MNT | 14,201 | 101 | 0.72% | 14,151 | 14,201 | 14,151 | 412 | 9-Nov | 35.25% | 79.76% | ||
Mogoin Gol | MNT | 30,000 | 500 | 1.69% | 30,000 | 30,000 | 29,999 | 241 | 9-Nov | 154.24% | 233.33% | ||
BDSec | MNT | 3,900 | -50 | -1.27% | 3,950 | 4,000 | 3,900 | 2,530 | 9-Nov | 56.00% | 59.18% | ||
Bayangol Hotel | MNT | 39,999 | 999 | 2.56% | 39,400 | 39,999 | 39,000 | 126 | 9-Nov | 67.36% | 71.30% | ||
Bayanteeg | MNT | 31,100 | 0 | 0.00% | 31,100 | 31,100 | 31,100 | 0 | 8-Nov | ||||
UB BUK | MNT | 29,000 | 3000 | 11.54% | 29,000 | 29,000 | 29,000 | 10 | 9-Nov | 538.06% | |||
Eermel | MNT | 2,750 | 150 | 5.77% | 2,750 | 2,750 | 2,750 | 178 | 9-Nov | -4.35% | 96.43% | ||
Gobi | MNT | 5,100 | 49 | 0.97% | 5,055 | 5,100 | 5,055 | 228 | 9-Nov | -8.93% | -7.10% | ||
Gutal | MNT | 2,461 | 251 | 11.36% | 2,461 | 2,461 | 2,461 | 70 | 9-Nov | ||||
Hi B Oil | MNT | 210 | 0 | 0.00% | 210 | 210 | 210 | 4,019 | 9-Nov | 16.67% | 23.53% | ||
Khukh Gan | MNT | 190 | -6 | -3.06% | 197 | 197 | 190 | 5,352 | 9-Nov | 1.60% | 20.25% | ||
Hermes Centre | MNT | 55 | 3 | 5.77% | 52 | 55 | 52 | 104,800 | 9-Nov | 1.85% | 3.77% | ||
Jenko Tour Bureau | MNT | 98 | 1 | 1.03% | 96 | 98 | 96 | 18,012 | 9-Nov | 4.26% | -1.01% | ||
Telecom Mongolia | MNT | 2,700 | 100 | 3.85% | 2,600 | 2,700 | 2,600 | 580 | 9-Nov | -22.86% | -20.59% | ||
Mongolia Dev Res | MNT | 1,250 | 50 | 4.17% | 1,200 | 1,250 | 1,200 | 2,771 | 9-Nov | -3.85% | -10.71% | ||
Moninjbar | MNT | 140 | 5 | 3.70% | 137 | 140 | 137 | 10,000 | 9-Nov | 21.74% | 12.00% | ||
Mongol Nekhmel | MNT | 2,505 | -195 | -7.22% | 3,100 | 3,100 | 2,505 | 44 | 9-Nov | 92.69% | 150.50% | ||
Hotel Mongolia | MNT | 799 | 0 | 0.00% | 790 | 799 | 790 | 1,795 | 9-Nov | 70.00% | |||
Darkhan Nekhii | MNT | 6,800 | 796 | 13.26% | 6,300 | 6,800 | 6,300 | 223 | 9-Nov | 38.78% | 112.50% | ||
Nak Tulsh | MNT | 237 | 19 | 8.72% | 239 | 239 | 237 | 6,787 | 9-Nov | -27.08% | |||
Olloo | MNT | 132 | 17 | 14.78% | 124 | 132 | 124 | 12,000 | 9-Nov | -12.00% | -24.57% | ||
Remikon | MNT | 151 | 2 | 1.34% | 151 | 151 | 151 | 6,062 | 9-Nov | 109.72% | 91.14% | ||
Sharyn Gol | MNT | 13,000 | 500 | 4.00% | 12,900 | 13,000 | 12,900 | 5,443 | 9-Nov | 23.81% | 18.18% | ||
Shivee Ovoo | MNT | 22,000 | -1500 | -6.38% | 23,500 | 23,500 | 22,000 | 215 | 9-Nov | 69.23% | 59.42% | ||
Sor | MNT | 1,200 | -50 | -4.00% | 1,200 | 1,200 | 1,200 | 30 | 9-Nov | 60.00% | 33.33% | ||
Suu | MNT | 70,000 | 0 | 0.00% | 70,000 | 70,000 | 70,000 | 0 | 7-Nov | 233.54% | 407.25% | ||
Tav | MNT | 20,000 | 0 | 0.00% | 20,000 | 20,000 | 20,000 | 0 | 28-Oct | ||||
Talkh Chikher | MNT | 10,100 | 0 | 0.00% | 10,100 | 10,100 | 10,100 | 0 | 8-Nov | 172.97% | 197.06% | ||
Tavantolgoi | MNT | 11,200 | -50 | -0.44% | 11,251 | 11,260 | 11,200 | 2,069 | 9-Nov | 94.44% | 124.00% | ||
State Dept Store | MNT | 480 | 50 | 11.63% | 430 | 480 | 430 | 8,772 | 9-Nov | 11.63% | 11.63% | ||
Ulaanbaatar Hotel | MNT | 62,000 | 5000 | 8.77% | 60,000 | 62,000 | 60,000 | 24 | 9-Nov | 125.45% | 123.01% | ||
Mongol Savkhi | MNT | 2,300 | 300 | 15.00% | 2,300 | 2,300 | 2,300 | 28 | 9-Nov | 318.18% | 283.33% | ||
Zoos Goyol | MNT | 850 | 50 | 6.25% | 850 | 850 | 850 | 1,153 | 9-Nov | 7.59% | 6.25% | ||
HKEx | Solartech Int’l | HKD | 0.2 | -0.007 | -3.38% | 0.202 | 0.21 | 0.199 | 10,513,500 | 9-Nov | -79.17% | -80.77% | |
Winsway | HKD | 2.71 | 0.05 | 1.88% | 2.72 | 2.74 | 2.65 | 2,395,000 | 9-Nov | -39.70% | -26.47% | ||
SouthGobi Resources | HKD | 63.9 | 2.3 | 3.73% | 63 | 65.3 | 63 | 72,050 | 9-Nov | -35.78% | -26.64% | ||
China Gold | HKD | 26 | 0 | 0.00% | 26.4 | 26.4 | 26 | 114,200 | 9-Nov | -38.10% | |||
CNNC Int’l | HKD | 2.14 | 0.01 | 0.47% | 2.17 | 2.19 | 2.1 | 1,107,000 | 9-Nov | -75.40% | -71.08% | ||
Real Gold Mining | HKD | 8.81 | 0 | 0.00% | 8.81 | 8.81 | 8.81 | 0 | 9-Nov | -34.28% | -43.46% | ||
Mongolia Energy | HKD | 0.75 | 0 | 0.00% | 0.76 | 0.77 | 0.74 | 16,305,700 | 9-Nov | -67.67% | -75.49% | ||
Zijin Mining | HKD | 3.85 | 0.06 | 1.58% | 3.84 | 3.92 | 3.74 | 47,471,362 | 9-Nov | -18.38% | -27.08% | ||
Mongolia Inv Group | HKD | 0.048 | -0.001 | -2.04% | 0.049 | 0.05 | 0.047 | 17,296,000 | 9-Nov | -67.57% | -77.36% | ||
North Asia Resources | HKD | 0.365 | -0.03 | -7.59% | 0.375 | 0.38 | 0.36 | 920,000 | 9-Nov | -59.89% | -73.74% | ||
China Daye Non-Fer. | HKD | 0.435 | 0 | 0.00% | 0.435 | 0.435 | 0.425 | 1,408,000 | 9-Nov | -22.32% | -7.45% | ||
Bestway Int’l | HKD | 0.055 | 0.003 | 5.77% | 0.057 | 0.057 | 0.052 | 1,550,000 | 9-Nov | -60.99% | -68.93% | ||
Asia Coal | HKD | 0.144 | 0 | 0.00% | 0.144 | 0.144 | 0.144 | 0 | 9-Nov | -42.40% | -43.53% | ||
Mongolian Mining | HKD | 6.84 | 0.13 | 1.94% | 6.77 | 6.96 | 6.77 | 2,094,000 | 9-Nov | -24.59% | -20.74% | ||
SGX | LionGold | SGD | 0.865 | -0.005 | -0.57% | 0.87 | 0.87 | 0.865 | 10,978,000 | 9-Nov | 18.49% | 96.59% | |
LSE | Central Asia Metals | GBp | 67 | 0 | 0.00% | 67 | 67 | 67 | 560 | 9-Nov | -25.76% | -24.72% | |
Petro Matad | GBp | 18.25 | -1 | -5.19% | 19.25 | 19.25 | 18.25 | 284,237 | 9-Nov | -85.04% | -85.31% | ||
Metal-Tech | GBp | 5 | 0 | 0.00% | 5 | 5 | 5 | 0 | 9-Nov | -67.74% | -69.70% | ||
Origo Partners | GBp | 37 | 0.25 | 0.68% | 36.75 | 37.25 | 36.75 | 353,596 | 9-Nov | -9.76% | -5.73% | ||
North America | Aberdeen Int’l | CAD | 0.63 | -0.03 | -4.55% | 0.66 | 0.67 | 0.6 | 304,987 | 9-Nov | -22.09% | 7.78% | |
Blue Zen Mem. Parks | CAD | 0.165 | 0.01 | 6.45% | 0.16 | 0.165 | 0.15 | 3,500 | 9-Nov | ||||
Centerra Gold | CAD | 20.3 | 0.08 | 0.40% | 20.13 | 20.59 | 19.65 | 425,350 | 9-Nov | 4.51% | 19.16% | ||
China Gold | CAD | 3.31 | -0.11 | -3.22% | 3.43 | 3.49 | 3.3 | 248,090 | 9-Nov | -39.04% | -40.04% | ||
Denison Mines | CAD | 1.45 | -0.06 | -3.97% | 1.49 | 1.52 | 1.44 | 2,522,182 | 9-Nov | -57.48% | -46.10% | ||
Denison Mines | USD | 1.41 | -0.08 | -5.37% | 1.46 | 1.5 | 1.41 | 2,063,178 | 9-Nov | -58.77% | -46.79% | ||
East Asia Minerals | CAD | 1.04 | -0.08 | -7.14% | 1.1 | 1.1 | 0.98 | 906,129 | 9-Nov | -87.06% | -85.10% | ||
Entree Gold | USD | 1.71 | -0.11 | -6.04% | 1.76 | 1.78 | 1.7 | 45,100 | 9-Nov | -50.58% | -39.79% | ||
Erdene Resource | CAD | 0.4 | -0.05 | -11.11% | 0.45 | 0.45 | 0.4 | 138,400 | 9-Nov | -67.74% | -33.33% | ||
Entree Gold | CAD | 1.76 | -0.09 | -4.86% | 1.79 | 1.82 | 1.76 | 86,065 | 9-Nov | -49.28% | -38.03% | ||
Fortress Minerals | CAD | 4.8 | 0 | 0.00% | 4.8 | 4.8 | 4.8 | 0 | 1-Nov | 10.34% | 33.33% | ||
Garrison Int’l | CAD | 0.025 | -0.005 | -16.67% | 0.025 | 0.025 | 0.025 | 125,000 | 9-Nov | -72.22% | -44.44% | ||
Gulfside Minerals | CAD | 0.08 | 0.015 | 23.08% | 0.07 | 0.08 | 0.07 | 19,500 | 9-Nov | -15.79% | -38.46% | ||
Green Tech Solutions | USD | 0.11 | 0.009 | 8.91% | 0.085 | 0.114 | 0.085 | 97,700 | 9-Nov | -97.25% | |||
Ivanhoe Energy | CAD | 1.21 | -0.03 | -2.42% | 1.2 | 1.27 | 1.18 | 487,222 | 9-Nov | -55.51% | -55.19% | ||
Ivanhoe Energy | USD | 1.17 | -0.03 | -2.50% | 1.17 | 1.24 | 1.16 | 650,927 | 9-Nov | -56.99% | -56.51% | ||
Ivanhoe Mines | CAD | 21.14 | -1.48 | -6.54% | 21.9 | 22.11 | 21.03 | 1,476,656 | 9-Nov | -8.09% | -14.29% | ||
Ivanhoe Mines | USD | 20.69 | -1.73 | -7.72% | 21.24 | 21.69 | 20.5699 | 3,818,807 | 9-Nov | -9.73% | -15.65% | ||
Kincora Copper | CAD | 0.3 | -0.005 | -1.64% | 0.31 | 0.31 | 0.3 | 47,366 | 9-Nov | 11.11% | 150.00% | ||
Khan Resources | CAD | 0.24 | 0 | 0.00% | 0.245 | 0.245 | 0.24 | 11,500 | 9-Nov | -50.00% | -57.14% | ||
Long Harbour | CAD | 0.1 | -0.02 | -16.67% | 0.12 | 0.12 | 0.06 | 25,000 | 9-Nov | -4.76% | |||
Lucky Strike | CAD | 0.66 | 0.01 | 1.54% | 0.66 | 0.66 | 0.66 | 1,000 | 9-Nov | -54.48% | 83.33% | ||
Lucky Strike | USD | 0.6817 | 0 | 0.00% | 0.6815 | 0.6817 | 0.6815 | 0 | 24-Oct | -51.95% | |||
Meritus Minerals | CAD | 0.04 | 0 | 0.00% | 0.04 | 0.04 | 0.04 | 15,000 | 9-Nov | -80.00% | -86.21% | ||
Manas Petroleum | USD | 0.19 | 0 | 0.00% | 0.18 | 0.19 | 0.17 | 140,300 | 9-Nov | -68.33% | -68.33% | ||
Mongolia Growth Grp | USD | 4.202 | -0.183 | -4.17% | 4.3 | 4.3255 | 4.202 | 32,800 | 9-Nov | ||||
Blue Wolf Mongolia | USD | 9.5 | 0 | 0.00% | 9.5 | 9.5 | 9.5 | 0 | 8-Nov | ||||
Blue Wolf Mongolia | USD | 10.27 | 0 | 0.00% | 10.15 | 10.27 | 10.15 | 0 | 3-Nov | ||||
Manas Petroleum | CAD | 0.16 | 0 | 0.00% | 0.16 | 0.16 | 0.16 | 0 | 7-Nov | ||||
Prophecy Coal | CAD | 0.52 | -0.03 | -5.45% | 0.52 | 0.55 | 0.52 | 720,357 | 9-Nov | -39.86% | -24.82% | ||
Prophecy Coal | USD | 0.524 | -0.027 | -4.90% | 0.524 | 0.524 | 0.524 | 2,000 | 9-Nov | -40.58% | -24.72% | ||
Puget Ventures | CAD | 0.49 | 0 | 0.00% | 0 | 17-Sep | |||||||
SouthGobi Resources | CAD | 7.9 | -0.63 | -7.39% | 8.55 | 8.55 | 7.9 | 64,168 | 9-Nov | -35.14% | -30.15% | ||
Solomon Resources | CAD | 0.075 | -0.005 | -6.25% | 0.08 | 0.08 | 0.075 | 31,089 | 9-Nov | -65.12% | -75.00% | ||
Wedge Energy | CAD | 0.015 | 0 | 0.00% | 0 | 3-Aug | |||||||
Mongolia Growth Grp | CAD | 4.35 | -0.07 | -1.58% | 4.39 | 4.39 | 4.29 | 21,567 | 9-Nov |
---
"Mogi" Munkhdul Badral
Senior Client Manager / 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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