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Ocean Equities: Focus on Metals and Mining
2011 Review and 2012 Outlook: Markets still finely balanced but potential for fundamentals to outweigh risk aversion.
January 16, Ocean Equities Limited --
It seems hard to remember that 2011 started in a similar way to 2010 as the decompression post-credit crisis continued to buoy the markets. However, a unique combination of natural disasters and economic headwinds stole the wind from the market's sails early last year and we have been in choppy waters ever since. During this period most investors preferred to keep their powder dry than increase equity exposure (particularly in less liquid stocks) and so the markets failed to find any support.
While the European credit risk has created wild headlines, the current global macroeconomic picture is dominated by Chinese industrial production and trade balance figures, both of which are still showing positive growth but now at much lower rates. This has lead to increased volatility in commodity prices as supply chain inventories have been reduced and supply has reverted to just-in-time inventory management. Overall commodity prices have remained resilient to weak economic indicators. This gives us confidence that there is little oversupply in the system (barring certain metals, like aluminium) and so, should China avoid a hard landing and the North American indicators stay positive, we should see a commodity-led recovery in the near term. We are keeping a close eye on the primary figures out of China following its New Year as key indicators of the current macroeconomic landscape.
We believe that the investment case for commodities is very much intact. Commodity prices are still largely at historically favourable levels. The continued volatility in the capital and commodity markets has further impacted the ability to bring new supply on stream. Cost inflation and labour shortages continue to be an issue, and increased delays in permitting and resource nationalism are other concerns in the industry. Against this backdrop there continues to be industrialisation and urbanisation of an unprecedented scale in a key emerging markets.
This will drive global demand and imply a level of raw material growth that will continue to challenge an adequate supply side response.
A good example is the spot iron ore price, which from the end of Sep'11 to the end of Oct'11 fell ~35%. Spot iron ore prices have since rallied, at one point testing the marginal cost of Chinese production with consensus again pushing out the expected date of oversupply in the market, which has remained in deficit since 2001/02. Indeed we highlight that at current spot prices most non-Chinese iron ore mines are making extremely attractive cash operating margins and that recent weather related disruptions in Brazil and Australia are timely reminders of potential supply side shocks.
Over the last year a disconnect between commodities and equities prices has often been cited, particularly where the market has been focused on liquidity, counter-party and funding risk rather than bottom up company fundamentals. A focus of attention was the difference between the physical gold price action and that of gold equities. Feedback along the lines of "nearly everything in the commodity space is cheap today on a relative basis, but they could all get much cheaper yet if the Euro zone turns into a liquidity crisis" is not uncommon and a number of portfolios are holding a significant percentage of funds in cash. Most want to be ready for when the macro environment stabilises; missing an upturn in the market is an unforgivable sin for a fund manager. The performance of the recovery phase post 2008/09 provides a very clear reminder of the potential speed and size of a re-rating of the metals and mining sector, particularly for those companies that continued to advance their projects in the downturn.
In our view the near term outlook for 2012 is one dominated by two key areas of uncertainty, which creates a potential inflection point that fundamentals outweigh risk aversion. On the demand side, it would appear the world's largest economy, the USA, is back on the growth path but there is still a query for China and if it will successfully avoid a 'hard landing' – this is the key uncertainty on the demand side. The second key uncertainty in our view is Europe's debt and geopolitical situation. While this is unlikely to directly have a significant impact on raw materials demand it will have a critical impact on the markets appetite for risk and the functioning of the credit markets (both to positive and negative developments) which we expect would impact the physical commodity markets and the metals and mining sector, particularly at the small and mid cap end. In our view current uncertainty supports company specifics and 'stock picking' being extremely important. We expect discovery, successfully commissioning production and M&A will be the positive factors influencing the small to mid-tier components of the mining industry in 2012.
Other themes to watch for in 2012 include increased asset acquisitions and divestments, further M&A, increased non-equity sources of capital and a pipeline of capital raisings to come to market if the opportunity presents itself with a number of proposed (and previously delayed) IPO's in the wings. We believe generally that the cash reserves held by natural resource specialist funds are at relatively high levels, that commodity traders are still looking to increase access to product and that most producers in the first or second quartiles of the cost curve are still generating attractive operating cash flow. We expect good projects and management teams will still be able to attract capital and generate attractive returns for shareholders.
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Haranga Resources Ltd
Concept starting to become reality with maiden resource, favourable met tests and scoping study expected in 1H'12
Investment Opportunity
Haranga Resources Ltd ('Haranga' or 'the Company') is a Mongolian exploration and development play focused on the acquisition, exploration and development of iron ore projects which listed on the ASX in Dec'10 raising A$25m. Haranga has a controlling interest in four promising magnetite skarn projects with all assets close to existing or planned infrastructure on northern China's doorstep and is in a unique position to supply the inland steel mills which are currently supplied by extremely low grade domestic ore. The business model Haranga is employing is very similar to its big brother company, Hunnu Coal (recently the target of a successful A$477m cash offer by Banpu Minerals) albeit 12 months behind in terms of exploration/development of its flagship asset.
The Selenge project is the largest and most advanced of Haranga's projects and is located near existing infrastructure and mining operations in Mongolia's premier iron ore province that hosts the Eruu Gol mine (300Mt @ 35% Fe), the Tumurtei project (230Mt @ 51% Fe) and Tumur Tolgoi deposits (25Mt), of which the latter two are State controlled. Recent drilling at each of the Bayantsogt, Huiten Gol and Dund Bulag targets within the Selenge project have intersected significant widths of skarn related iron mineralisation of not dissimilar grades to other projects in the region. All targets are associated with large magnetic hills and lie within a well defined structural corridor that contains all of the known iron ore deposits in the area, including nearby Eruu Gol (15km away). The Eruu Gol mine is exporting 2.5Mtpa and ramping up to 6Mtpa following the newly constructed 75km rail spur to the trans-Mongolian rail line. CIC invested US$500m to take a 35% stake in Eruu Gol in Oct'09 and a Hong Kong IPO is under discussion.
Review of 2011
At its flagship Selenge project, Haranga made a number of significant positive developments during 2011, having commenced initial drilling activities in 2H'11 and acquiring an additional 20% interest at the asset level (effective ownership now 80%) with a representative of the local vendor, Bat-Ochir Sukhbaatar, appointed to the Board. Bat-Ochir is a well known, successful businessman and the brother of the current Prime Minister, Batbold Sukhbaatar. Other recent positive board changes have been the appointment of Erdene Tsengelbayar and Kerry Griffin as Executive Director and Technical Director respectively as the Company positions itself to make the transition from exploration into the development phase. In late Dec'11, the Lippo Group (controlled by the Riady family out of Indonesia, one of Asia's largest conglomerates) acquired a 7.4% stake becoming Haranga's largest shareholder.
The most advanced target at the Selenge project is the Bayantsogt prospect where 29 of the 33 drill holes have intersected significant widths of iron mineralisation and five major lodes having been identified within the large Bayantsogt hill (averaging ~20m & up to 103m thick). At the nearby larger Dund Bulag prospect early drilling results have intersected extremely wide zones of a similar style of magnetite, with assays pending. A total of 13,500 metres were drilled at Selenge during 2011 and we expect metrage to be accelerated once drilling recommences in 2012 with Haranga comfortably funded.
Outlook for 2012
In the next 6 months we expect Haranga will develop from a unique and exciting concept to being a highly prospective company with its flagship Selenge asset having a maiden JORC resource at the Bayantsogt prospect in 1Q'12, before initial metallurgical test work and a scoping study is completed in 1H'12. Furthermore, we expect a significant exploration target to be shortly defined at Dund Bulag, which has the potential to be the largest iron ore deposit in the region.
Iron ore deposits within the province are relatively low grade by Australian and Brazilian DSO standards, but they are significantly higher than Chinese domestic supply (in 2010 China mined ~800Mt @ ~19% Fe), and are generally formed in parallel sections of skarn mineralisation (not dissimilar to coal seams in structure). Current mining operations at Eruu Gol, Mongolia's largest iron ore export mine, have proven magnetite skarn deposits such as Bayantsogt and Dund Bulag are amenable to low strip ratio mining (mining a hill) and simple beneficiation (dry magnetic separation, no grinding, with a wet line expected to improve economics/product control), generating extremely attractive margins given the inherent transport cost advantage. The Eruu Gol mine development and ramp up demonstrates the potential value of deposits in the Selenge region and has ability to become producing mines in a relatively short period of time with low capex and attractive opex given the proximity to infrastructure. A scoping study for the Bayantsogt prospect and significant exploration target for the Dund Bulag prospect are expected to highlight the potential value of the Selenge project, and the pipeline of other projects Haranga owns.
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Kincora Copper Limited
Beginning to put together the pieces of what appears to be a very large jigsaw puzzle of mineralised zones
Investment Opportunity
Kincora Copper ('Kincora' or 'the Company') is a Mongolian exploration and development play focused on the acquisition, exploration and development of copper-gold projects. The Company owns 100% of the Bronze Fox property ('BF') which occupies 223.23km2 of land on the same metallogenic belt as the world-class Oyu Tolgoi copper-gold project ('OT'), and in 2005 was one of four high priority targets of Ivanhoe Mines for large scale porphyry and skarn copper mineralisation before the decision was made to develop OT. It is in a favourable location for project development (along the Chinese border and within proximity to rail, water and power); in an emerging belt; backed by a proven in-country team (early entrants to Mongolia with international and on-the-ground team of experts); and, a rapid growth, pro-mining country. The under explored copper-gold potential of Mongolia supports one of the last regions where a junior can add a lot of value quickly via favourable exploration, the discovery of a large scale deposits in known elephant country.
Mineralisation encountered to date at BF has been associated with sheeted and stockwork quartz-chalcopyrite-pyrite veins and disseminated chalcopyrite-pyrite with associated gold and sometimes molybdenum. Current exploration activities have focused on the west central part of the license area where there is extensive copper-gold-molybdenum mineralisation with drilling up to 6km apart, predominately within a 6km strike high IP chargeability anomaly. Known mineralisation remains open along strike over a very large area of ~30km2 but covering only ~13% of the total license area.
Review of 2011
Kincora was only formed in mid Jul'11 following the closure of the transaction between Origo Partners and Brazilian Diamonds Ltd, and raising C$12.1m via a private placement (@ C$0.35/sh). In Aug'11, the Company acquired the outstanding 25% not already held of BF from Mr Duchinta Khojgor (the original project vender) who has joined Kincora's board, and in Oct'11 Igor Kovarsky joined the Company as President & CEO.
In our view initial exploration progress has been impressive and pursued a prudent strategy. A total of 23 holes for ~12,500m was drilled in 2011 (total drilling ~24,000m), with activities focused on: initial regional greenfield exploration; initial exploration for gold mineralisation; and, continued drilling to define a 'starter' open pit project and access higher grade underground potential. While we do not expect this year's drilling programme to define a maiden NI 43-101 compliant resource, drilling to date has further indicated prospective alteration/structure and suggesting there has most likely been a large multi-phase copper and copper-gold-molly mineralisation event at BF.
Outlook for 2012
While full assay results are not yet available, visual mineralisation and assays from drilling to date indicates that the BF project has a large area of lower grade copper mineralisation with potential for higher grade mineralisation around the West Kasulu (best illustrated by hole F31 which intersected 8.11% Cu and 1.5g/t Au over 1m from 7m within a 106m intersection of 0.40%CuEq) and Leca Pass targets, with higher grade copper mineralisation below 500m (to a depth of 951m in hole F39), and gold and copper mineralisation near surface at the Buchanan Heights, Leca Pass and Sophie North targets.
For example, a recent surface rock chip sample programme (60 samples) to test for potential gold in an area 3km south of Leca Pass resulted in 11 assays with gold grades of >0.5g/t, including 8 samples with >1g/t Au, and 3 samples with >19g/t Au (the highest being 91.6g/t Au), scattered in quartz veins along an underexplored shear zone.
Drilling results to date supports the potential for a conceptual initial lower grade open pit operation at West Kasulu. The Company has almost completed core cutting on site following drilling ceasing in Nov'11 with receipt of all outstanding assay results expected in the next month or two. Kincora is currently concentrating on further geophysics and geochemistry studies, and a soil sampling and high resolution ground magnetic survey with a 200m grid and geological mapping to cover the whole license area. As results feed through during the winter (particularly analysing the drill-core, geochem assays and mag survey results), the Company will design its 2012 exploration programme to aggressively focus on specific priority areas and achieve specific project milestones.
The current activities of Kincora are akin to defining and starting to put together the pieces of what appears to be a very large jigsaw puzzle with various known mineralized targets already identified on a small section of the tenement. Expected company specific news flow includes: results from the current season's drilling and rock chip samples (both from historic trenches and new regional surface samples); potential consolidation of other copper-gold properties in Mongolia; and, the potential definition of a conceptual resource and exploration target at West Kasulu.
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Voyager Resources Ltd
Intersecting some of the best copper mineralisation in Mongolia outside of OT with a maiden resource due in 1H'12
Investment Opportunity
Voyager Resources Ltd ('Voyager' or 'the Company') is a Mongolian exploration and development play focused on the acquisition, exploration and development of copper-gold projects. The Company has a controlling interest in three promising projects, all drill tested. Recent aggressive exploration at its flagship asset, the KM project ('KM'), has returned some of the best copper mineralised intersections in Mongolia outside of the giant Oyu Tolgoi project ('OT'). Early drill results have drawn a number of comparisons to the Chilean porphyry systems with the under explored copper-gold potential of Mongolia supporting one of the last regions where a junior can add a lot of value quickly via favourable exploration, the discovery of a large scale deposits in known elephant country.
KM is located in the Edrene Island Arc Terrain, part of the South Gobi Arc Terrains which hosts a number of mineralised porphyry systems including OT and the nearby Zuun Mod molybdenum-copper system. The Company plans to have completed 50,000 metres of drilling at KM by Jun'12 with drilling (three diamond and one RC rig) and further geophysics/geochemical surveys ongoing over the winter.
Review of 2011
Initial field season activities commenced at Voyager's Khongor copper-gold project (100% interest) with twenty-four holes for 3,170 metres completed during this programme. Despite favourable results, with many holes intersecting a shallow porphyry style copper mineralised zone over a 400 by 150 metre area (and open), exploration activities have slowed due to the prioritisation of resources and drilling activities at KM.
Drilling at KM commenced in late Jun'11 with up to six rigs completing 157 RC holes, 47 diamond and 18 diamond core drill tails for 25,000 metres to date with ~60% of assay results still pending. In late Dec'11, Voyager acquired an additional 30% interest at the asset level (effective ownership now 80%). Five mineralised hydrothermal breccia pipes have been drill tested out of +20 occurrences identified in outcrop and subcrop. Drilling of the five pipes has intersected broad visual mineralisation at each prospect, with assay results to date returning extensive shallow mineralisation at the Cougher and Gains prospects (first pipes drilled) with intersections such as 116m @ 2.4% Cu & 7.2g/t Ag (from 30m) and 46m @ 1.1% Cu & 14.1g/t Ag (from 16m) respectively and higher grade intercepts of chalcocite and chalcopyrite mineralisation indicating potential primary mineralisation (eg 50m @ 3.5% Cu & 10.8% Ag and 34m @ 3.9% Cu & 14.7 g/t Ag respectively). Voyager has also indicated that it has intersected mineralisation over 150 metres in initial drilling at Aranjin, with these results pending.
Outlook for 2012
The current aggressive drilling programme is planned to continue through the Mongolian winter, with a significant proportion of the analytical backlog expected to be cleared shortly, and provide a steady stream of news flow over the upcoming months. The magmatic hydrothermal breccia's intersected in drilling at the Cughur, Gaans (2.5km to the east of Cughur) and, more recently, Aranjin prospects (1.5km NE of Cughur) are now believed to have formed as intrusive breccia pipes that have been emplaced or fed from a large porphyry stock or stocks. The intrusive pipes are located in a continuous semi circular annulus to the south of a large granitic complex.
Initial near surface drilling results and recent 3D modeling of IP surveys have supported depth extensions and a potentially larger tonnage primary source (similar to mineralisation encountered at OT with the primary discovery hole not made until drill hole 150). A separate programme commenced in Dec'11 to test for this potential and early drilling intersected significant alteration zones thought to be associated with porphyry stocks. These systems or clusters may act as feeders to the shallow hydrothermal breccia's intersected to date. Initial drilling has been hampered by fractured and broken ground encountered above the target zones. These holes were cemented and once the cement has set, Voyager plans to continue these deeper holes over the coming weeks.
Voyager's understanding of the geology and mineralisation continues to be advanced with initial near surface results being extremely exciting. A maiden JORC resource is expected in 1H'12, with preliminary metallurgical analysis, and the Company has stated an exploration target of 50-150Mt @ 0.8-1.5% Cu on the hydrothermal breccias alone (excluding the larger porphyry target). Voyager is comfortably funded and continues to de-risk its flagship project as it gains a better understanding of the deeper primary mineralisation potential. The definition of a number of near surface hydrothermal breccia resources offers the potential for an attractive initial development project. News flow is expected to be positive as the Company completes its 50,000 metre programme and announces assay results of a number of near surface zones and primary targets at depth.
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VOR traded as high as 8.1c or 6.6% higher, range 7.4c-8.1c as of early morning
Voyager: EXCEPTIONAL DISCOVERIES CONTINUE AT KM
January 18, Voyager Resources Limited (ASX:VOR) --
Voyager Resources is extremely pleased to announce a further discovery at its KM Copper Porphyry Project ("Project"), in the South Gobi Region of southern Mongolia.
Initial assay results have been received from the first diamond drill hole completed on the Aranjin Discovery. This result along with previously announced intersections from Cughur and Gaans Discoveries sees Voyager Resources continuing to drill some of the best copper mineralisation reported in Mongolia, external to the Giant Oyu Tolgoi Copper Deposit.
The first assays from drilling at the Aranjin Discovery, the third shallow hydrothermal breccia discovery at the KM Project has returned an outstanding result:
Ø 168 metres at 0.74% copper and 5.4 g/t silver from 76 metres (KM0124D), including:
§ 36 metres at 2.07% copper and 16.2 g/t silver from 86 metres
In addition to this, further results have now been received from drilling completed at the Cughur and Gaans Discoveries. These results continue to confirm the KM Copper Project as the major new high grade copper discovery in Mongolia, and include:
Cughur:
§ 115 metres at 1.5% copper and 2.9 g/t silver from 26 metres (KM0057RCD)
§ 58 metres at 1.2% copper and 4.3 g/t silver from 36 metres (KM0055RC)
§ 52 metres at 1.5% copper and 3.6 g/t silver from 28 metres (KM0064RCD)
Gaans:
§ 72 metres at 1.2% copper and 8.8 g/t silver from 14 metres (KM0083D)
§ 64 metres at 0.8% copper and 3.3 g/t silver from 2 metres and 32 metres at 1.2% copper and 3.3 g/t silver from 124 metres (KM0091RCD)
It has been deduced that a porphyry stock or cluster of porphyry stocks, exists at the KM Copper Project which act as feeders to these shallow hydrothermal breccias. Voyager recently commenced a separate drill programme aimed at identifying the porphyry stock or stocks.
Voyager has placed an Exploration Target* of between 50 and 150 million tonnes at between 0.8 and 1.5% copper on the hydrothermal breccias at the KM Copper Project. This Exploration Target does not include the larger Copper Porphyry Stock targets.
Mineralisation has also been intersected in drilling on a further two hydrothermal breccia prospects, namely Gaans North and Zam Daguukh and a sheeted vein system at the Elstei Prospect.
Voyager has completed 173 RC drill holes, 48 diamond core drill holes and 19 diamond core drill tails on the project. Ongoing exploration and drilling continues to strengthen Voyager's belief that the KM Copper Project is an exceptional porphyry copper project.
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CPS Securities: Based on the above, CPS Securities maintains its SPECULATIVE BUY recommendation on the stock.
ZHCH is 70% indirectly owned by Nova
Nova: Coal Transportation Contract
January 17, Nova Resources Limited (NOVA:LN) --
The Board is pleased to announce that ZHCH Mining LLC ("ZHCH") has entered into a coal transportation contract with Transgobi LLC (which office is at 15, Central Tower, Sukhbaatar Square-2, Sukhbaatar District, 8th khoroo, Ulaanbaatar 14200, Mongolia) to transport coal from its Ukhaa Khudag coal mine, located at Tsogttsetsii soum, Umnugobi aimag, Mongolia to Tsagaan Khad, Mongolia (the "Contract").
ZHCH and Transgobi are now finalising the date on which operations pursuant to the Contract shall commence and Nova will issue an RNS as and when appropriate. Upon commencement and under the terms of the Contract, Nova estimates that the revenue per annum accruing to ZHCH from the Contract could exceed US$20 million. The Contract shall continue until either party terminates the Contract by giving 30 days prior notice.
The Contract was procured through the efforts of two Mongolian citizens who, pursuant to the announcement dated 6 December 2011, hold 30% of the entire issued share capital of Nova Mongolia by way of a joint venture agreement (the "Mongolian Shareholders"), and who have agreed to continue marketing for and executing transportation contracts. Pursuant to the joint venture agreement, Nova has agreed with the Mongolian Shareholders that it shall contribute to Nova Mongolia by raising funds that are necessary for Nova Mongolia, from time to time, to expand and execute its business (whether through ZHCH or otherwise). Furthermore, Nova has agreed that if any monies are raised by Nova Mongolia from Nova, the first US$16 million raised by Nova Mongolia shall not dilute the Mongolian Shareholders shareholding. Therefore, if the effect of the funds raised by Nova Mongolia are dilutive to the Mongolian Shareholders, additional Nova Mongolia shares shall be issued to the Mongolian Shareholders to maintain their percentage shareholding until US$16 million is raised.
Further Information:
ZHCH is 100% owned by Salins Limited. Salins Limited is 100% owned by Nova Mongolia Pte Ltd ("Nova Mongolia"). Nova Mongolia is 70% owned by Nova.
Transgobi LLC is 100% owned by Energy Resources LLC ("ER"). ER is a coking coal producer and exporter in Mongolia; which owns and operates the Ukhaa Khudag high-quality coking coal deposit located within the Tavan Tolgoi coal formation in the South Gobi province of Mongolia. ER is considered as one of the largest coking coal producers in Mongolia. More information on ER and Transgobi may be found at http://www.energyresources.mn/ and http://www.energyresources.mn/about/show/id/8.
PCY closed +8.33% at C$0.455c, PRPCF closed +15.47% at US$0.459c
Prophecy Coal rallies on Chandgana 600MW power plant feasibility study
January 17 (Proactive Investors USA & Canada) Prophecy Coal Corp. (TSE:PCY) (OTCQX:PRPCF) unveiled Tuesday a positive feasibility study for its 600 megawatt (MW) Chandgana Mine-Mouth power plant project in central Mongolia, to be built next to the company's Chandgana Tal coal deposit.
Construction of the power plant project is planned to start in April 2013, with the first 150 MW unit being commissioned in October 2015. The remainder of the units are to be rolled out in April 2016, October 2016, and April 2017.
With proper maintenance, the project is estimated to have 30 years of commercial operation, the company said.
"The Feasibility Study has outlined the robust financial return for the Chandgana power plant based on conservative parameters." said CEO John Lee.
"Our low-cost coal supply enables future delivery of affordable and stable electricity to both Central and Eastern Mongolia. The opportunity represents a potential long term revenue stream from power plant operation, as well as from coal operation, without coal transportation issues."
The study projected an after tax internal rate of return (IRR) of 21.9 percent from the project, and a net present value of US $364.7 million, assuming a discount rate of 12 percent, and a debt interest rate of 10 percent.
Investors praised the news, with shares of the company rising 8.33% to trade at 45 cents as of 2:34pm ET Tuesday.
Prophecy said that should electricity tariffs and coal prices change, so will project economics. For example, a $0.005 kWh, or 8.3 percent tariff hike from base case would increase the project's IRR to 24.8 percent and the net present value to $473.4 million.
Under the feasibility study, coal will be supplied by the Chandgana Tal deposit, which contains 140 million tonnes of measured coal, at a steady rate of 2.7 million tonne per year, with the delivered coal price set at $15.50/t with a 2 percent semi-annual price increase. The electricity tariff is targeted at US $0.06/kWh, with a 2 percent semi-annual increase.
The plant's power production cost is currently estimated at US $0.023/kWh, including coal. Capital recovery, including loan principal and interest payments, is estimated to be US $0.025/kWh.
Capital cost is projected to be US $744 million for the 600MW project, or US $1,240 per kW. This includes the power plant, overhead transmission lines, and administrative costs, the company said, but excludes mine development costs.
The target capital structure is 30 percent equity, and 70 percent debt, with a 10 percent annual interest rate and 10-year pay back period, the study said.
The power plant and the coal deposit both already received a construction and a mining license in 2011. The feasibility study was prepared by Ralf Thomsen, project manager at Steag, a German firm specializing in the planning, financing, construction and operation of thermal power plants for fossil fuels.
Prophecy Coal said that discussions for engineering, procurement, and construction management, as well as project financing, are expected to be concluded this year.
The company's coal resource is next to a two-lane highway and 150 kilometres from the existing power grid. Once power and the mine are brought online, there is good potential to introduce additional plant units at lower capital costs, it added.
"In the long run (10 years), the volume of coal resource along with the project's proximity to China (approximately 400 km from Chinese border and 1,000 km from Beijing) offers the potential to scale up capacity and export electricity to China," Prophecy Coal concluded.
Prophecy Coal is a Canadian company that has over 1.4 billion tonnes of surface minable thermal coal resources on two coal properties in Mongolia. Its Ulaan Ovoo coal mine is in production and its Chandgana mine mouth power plant has been permitted.
CG closed -2.62% to C$18.21
UPDATE 1-Centerra Gold says delays hit Mongolia project
Jan 17 (Reuters) - Centerra Gold Inc (TSX:CG) said it could not predict when it would start production at its Gatsuurt project in Mongolia due to continued delays in receiving permits and approvals.
The Toronto-based company said it expects total gold production of 635,000 ounces to 685,000 ounces for the full year. For 2011, the company produced 642,380 ounces of gold.
The company added that the outlook for 2012 does not include any production from the Gatsuurt project.
Centerra said pending discussion of the water and forest law amendment in the Mongolian parliament made it difficult to predict the timing of the start of production at the Gatsuurt project.
The company also expects gold production to be impacted by four days in the first quarter, due to scheduled mill maintenance.
Shares of the company closed at C$18.21 on the Toronto Stock Exchange.
Centerra Gold Reports 2011 Gold Production of 642,380 Ounces and Provides 2012 Guidance – Marketwire, January 17
Mongol Bank 17 January closing price at 1,393.13 ₮/$
Mongol Bank Sells $12M at ₮1,390
January 17 (InfoMongolia.com) The Bank of Mongolia held a foreign currency auction today. With this trading session a proposal to buy 16.8 million USD came in at the lowest rate of 1,380 MNT and 1,398 MNT at highest, where the Bank of Mongolia sold 12 million USD at the closing rate of 1,390 MNT.
A foreign currency auction is a method used by the Bank of Mongolia to get involved in the market in order to keep the internal currency market transparent and open, increase, profits, stabilize and determine MNT rates. Only authorized commercial banks running activities in the Mongolia territory are eligible to participate in the foreign currency auction supervised by the Bank of Mongolia.
EC145 is first western helicopter in Mongolia
January 17 (CorporatJetInvestor) In October 2011, the EC145 was certified in Mongolia and the first EC145 was delivered to AJET. The helicopter was configured with eight passenger and two pilot seats and will in the short term be used for passenger transportation.
AJET has another Eurocopter EC145 on order. Previously, the company had only ever operated Russian built helicopters.
MONGOLIA AND ADB SIGN AGREEMENTS TO IMPROVE URBAN SERVICES
Ulaanbaatar, Mongolia, January 17 /MONTSAME/ The Asian Development Bank (ADB) and Mongolia's Ministry of Finance established on Tuesday two grants to improve urban services in Ulaanbaatar's ger areas and to improve financial services for the low income households.
"The new ADB project will be the single largest investment to create jobs and improve livelihoods in Ulaanbaatar's rapidly expanding ger areas. The grant to the Financial Regulatory Commission will help make better the performance of savings and credit cooperatives and provide modern financial education. Both grants will help Mongolians to ensure a more secure and prosperous future," said Robert Schoellhammer, who signed the agreements on behalf of ADB.
The agreements were inked by S.Bayartsogt, the Minister of Finance, at State House. The Ambassador Extraordinary and Plenipotentiary of Japan to Mongolia Mr. Takenori Shimizu and the First Secretary Mr. Himomichi Miyashita witnessed the signing.
The grant for the Ulaanbaatar Urban Services and Ger Areas Development Investment Program and the grant for Promoting Inclusive Financial Services for the Poor, for USD 1.5 million and USD 2.5 million respectively, are financed by the Japanese Fund for Poverty Reduction (JFPR), a facility the Government of Japan uses for channelling funding to develop Asia through the ADB.
Ger areas house 60% of the population of Ulaanbaatar. However, the lack of urban planning, services and basic infrastructure -- such as water, sanitation, heating systems and roads--is a real problem, severely damaging the environment, threatening the health of Ulaanbaatar citizens, and causing a high level of congestion in the city center. The situation is also constraining the economic growth of ger areas.
The grant will be used to prepare a set of projects to provide basic urban infrastructure in ger areas--mainly water, wastewater and heating--while improving urban services and urban planning. The program will focus on the development of existing sub-centers in ger areas to provide more job opportunities and livelihood services.
Low-income households in Mongolia find it hard to access savings, credit, and insurance services because information or suitable financial products are not available for them. The latest national household survey revealed that only 31% of households and 13% of poor households use formal financial services. Savings and credit cooperatives, under new legislation passed in December 2011, have the potential to serve these families and improve their livelihoods.
The grant for Promoting Inclusive Financial Services for the Poor will help improve and expand savings and credit services for low income households, especially in rural areas. It will ensure savings and credit cooperatives grow responsibly under strong regulation by the Financial Regulatory Commission. Financial education in the form of TV dramas will also be introduced. New evaluation methods, including mobile phone call-in systems, will be used to track project results.
DEMPARTY FACTION WANTS TO ALTER LOCAL ELECTION LAW
Ulaanbaatar, Mongolia, January 17 /MONTSAME/ The Democratic Party's faction discussed on Monday a law on local election and considered as necessity to alter it, especially the voting closing time.
In accordance with the current laws, the local and the parliament elections run the same day but their closing times are different--parliamentary election is closed at 8.00 pm, the local two hours later. "It must not be like that, the both voting must be stopped at the same time," the faction said.
Another amendment must go to the law on local election "because it differs from the parliament election law in terms of forming constituencies and sections' committees". The faction decided to submit to the State Great Khural a draft amendment to the law on local election and try to have parliament approve it before the autumn session ends.
After this the DP faction discussed draft amendments to the package laws on savings insurance, on income tax of enterprisers and on insurance, as well as a draft package laws on environment protection and on the payment for using natural resources. A working group was set up at the meeting led by P.Altangerel MP.
Apart of it, the faction resolved to convey a proposal to the cabinet on postponing establishing of investment and stability contracts with domestic and foreign entities until an approval of the law on mineral resources and an amendment to the law on foreign investors.
The faction also decided to give to the Standing committee on economics a direction urging to take lawful measures in conjunction with increasing of mineral resources at the Oyu tolgoi deposit.
28th Global Young Leaders Program: Creating an Impact Investment Fund in Mongolia. Link to Programme Prospectus
Using Mongolia's wealth to spur social development: A comparative approach with resource-abundant countries
January 17 (Global Institute for Tomorrow, via Business-Mongolia.com) Mongolia is now commonly called "Minegolia". This Central Asian country sits on vast natural resources. Besides its abundant forests and fisheries, mines contain major deposits of coal (at Tavan Tolgoi), gold (Boroo and Gatsuurt), copper (Oyu Tolgoi and Erdenet) and uranium (Martha and Saddle Hills). Industry analysts and economists put the value of untapped precious metals and minerals at around $1 trillion .
The two largest mining multi-national companies running large-scale operations in Mongolia are Vancouver-based Ivanhoe Mines Ltd and UK-headquartered Rio Tinto. Ivanhoe Mines is expected to start production in the second half of 2012 at Oyu Tolgoi, the world's largest new copper and gold mine, with some 80 billion pounds of copper and 46 million ounces of gold, according to its third quarter report. As Cameron McRae, Oyu Tolgoi`s CEO puts it, the mine will boost Mongolia's GDP by 33 per cent by 2020 and represent about 30 per cent of the country's economy . In addition, copper is the main source of budget revenue. In 2011, Mongolia's government was estimated to collect $407 million in revenues from the exportation of copper and $292 millions from coal . Coal extraction in southern Mongolia is expected to triple the national economy by 2020 .
Mongolia is, undoubtedly, on the verge to be the next commodities hub in Asia with mining representing 70 per cent of its exports. It has also been coined the "world's greatest resource boom" and "the Saudi Arabia of Asia". Furthermore, economic prospects look positive. The International Monetary Fund (IMF) estimates that the Mongolian economy will grow 13 per cent on average through 2010-2015 . According to the United Nations (UN), rising copper prices and gold production enabled the economy to grow by nine per cent per year .
The issue, however, is that this resources boom has not driven human development. For instance, 71 per cent of foreign direct investment (FDI) went to the mining sector whereas one per cent only went to the communications and IT sectors . Even though mining exploitation has brought in large government revenues , two-thirds of the state's Human Development Fund has served to increase civil service salaries and has been spent on monthly cash payments to secure electoral votes.
Moreover, after the dissolution of the USSR, Soviet assistance disappeared almost overnight. As the state has been transitioning from a Communist-style planned economy to a market economy, helped by the recent energy boom, it has confronted increased poverty and significant challenges to provide proper welfare services such as infrastructure, education and health care .
Today, Mongolia ranks 115th out of 185 nations, according to the Human Development Index, which measures health, education and standard of living. It is also amongst the top 10 countries most dependent on Overseas Development Assistance (ODA). Poverty has persisted with more than 30 per cent of the population living on less than $1.25 a day and 38.7% of Mongolians living below the poverty line in 2008, as the 2009 State Statistical Office indicates.
It is therefore paramount that Mongolia overcomes the "resource curse", a term British economist Richard M. Auty coined in 1993. Also called the "paradox of plenty", this thesis contends that countries with abundant natural resources tend to have less economic growth and worse development issues than countries with fewer or no natural resources. Indeed, resources-rich states rely heavily on the exploitation of resources, which hinders economic diversification and paves the way for poor social welfare performances, high levels of poverty, inequality and unemployment.
One classic example of this bonanza curse is the decline in competitiveness of the manufacturing sector, as the Dutch disease theory suggests. According to this economic model, developed by Australian and Irish economists W. Max Corden and J. Peter Neary in 1982, an increase in natural resources revenues and, subsequently, inflows of foreign currency and foreign direct investment and currency appreciation, will lead to a decline in competitiveness of the manufacturing sector in resource-abundant countries. This syndrome has come to be known as the "Dutch disease" because in the 1960s, the Netherlands significantly increased its wealth after it discovered large deposits of natural gas in the North Sea. Nonetheless, as the national currency became stronger, the competitiveness of non-oil exports decreased.
Although the terms "resource curse" and "Dutch disease" are usually used interchangeable, the former refers to the political and social consequences of resource-rich countries, whereas the latter often deals with the effects of the resulting currency appreciation and changes in the cost of factors of production.
Furthermore, heavily depending upon the mining sector threatens economic stability due to the volatility of world prices of copper and gold . Assuming that commodities prices will inevitably rise is not a successful economic policy. When the world price of copper nearly trebled in 2005-2006, Mongolia's economy grew faster. However, when this commodity boom came to an end and copper price dropped from over $8,000 per metric ton to under $4,000 in 2008, the country experienced fiscal problems. Besides, it did not save much from the revenue windfall during the boom times to reduce public indebtedness and translate these gains into development programs. In addition, relying heavily on oil, in particular, jeopardizes the economy's stability because of its future depletion and the technological sophistication it requires to exploit it.
To mitigate the effects of this "curse", Mongolia must better allocate mineral revenues and invest in basic social services, where opportunities are immense.
Such strategy implies economic diversification to direct a significant part of investments into non-energy sectors. The energy-rich countries of the Gulf, which are some of the world's fastest growing economies, illustrate the benefits of diversifying the economy. Like Mongolia, they have earned considerable revenues from natural resources (oil and gas) and have small local populations (with the exception of Saudi Arabia). Even though the UAE relies significantly of the exploitation of resources, which enabled the country to achieve a significant degree of economic development from 1973 to 1982 mainly with the high oil prices, it has also diversified its exports to more than 184 industrial products . Similarly, Qatar Petroleum's total contribution to the national economy exceeds 50 per cent of GDP and, with its foreign partners, accounts for almost the total of Qatar's exports. On the other hand, it used its hydrocarbon resources to heavily invest in education, health, construction and infrastructure projects. In 2011, the Human Development Index ranked the country 37th.
In Mongolia, one major area to invest in is the infrastructure sector. The country's rapidly changing economy has fuelled demand for adequate infrastructure. Ulaanbaatar's population has expanded by 70 per cent over the last 20 years but the capital's infrastructure has not been able to keep up with the growth. According to a World Bank report on Mongolia's Infrastructure Strategy, only 20 per cent of its 2.7 million population lives in comfortable apartments connected to the urban service system. More than 50 per cent live in gers (traditional felted tents) that not connected to the central water system. They also lack adequate heating systems: during glacial winters, residents can only use poor quality stoves or household boilers fuelled by coal and black tar dipped bricks and cars' tires. This significantly contributes to high levels of pollution, making UB one of the most polluted capitals in the world. The Mongolian government and socially-oriented entrepreneurs have, nonetheless, promoted pilot programmes to use high-efficiency stoves. Yet, the scale of the problem is larger: providing more effective heating tools is a temporary solution and does not overcome the challenge of making housing affordable. Domestic construction companies produce very little material and import the majority of it, such as concrete, from China. In the coming years, Mongolia will have to find a less costly and more effective system to provide affordable housing to every Mongolian.
On top of that, ger areas constitute a source of concern for the government because it is challenging to integrate these temporary settlements in the city development process and infrastructure programming. Indeed, investments cannot be coordinated if there is no national strategy for development encompassing the whole population. As an example, the Qatar National Vision 2030 provides a long-term policy framework within which development national strategies can be developed and implemented.
Investing in utility services such as heating infrastructures, hot water and sanitation is all the more necessary as winters, especially extremely snowy ones called "zud" in Mongolia, are hard due to severe climatic conditions (temperatures revolve around -30 Celsius). In addition, heating and electricity demand is expected to increase by four to five per cent annually between now and 2020 , thus providing opportunities for investment.
Transport is another sector calling for investment. In southern Mongolia especially, the Gobi desert, which possibly contains the biggest deposit of coking coal on the planet, requires effective railways and roads .
The UAE offers valuable lessons on the ways to use efficiently its natural resources. Pampered by petrodollars, this country has heavily invested in infrastructure. When Mongolian Prime Minister Sukhbaatar Batbold met with his Emirati counterpart Sheikh Mohammed bin Rashid Al Maktoum on January 2011, he said he was "impressed by the highly developed infrastructure in Dubai and United Arab Emirates (UAE)". Indeed, the UAE has used its resource-based industries to boost its social and economic infrastructure. In 2008, nearly 70 per cent of all project contracts were construction projects, according to Financial Times estimates . Investment in infrastructure has enabled the UAE northern region, which suffers huge gap in quality of life compared to other Emirates regions, to benefit from better roads and access to a pool of jobs for locals. Investment in telecommunications, power and railways has also greatly increased productivity and longer-term growth.
Investing in human capital is another crucial factor to the growth of the economy. According to the "paradox of the plenty" thesis, energy-rich governments tend to disregard the need of education. School enrolment is inversely related to natural resources abundance. For instance, the East Asian Tigers (Hong Kong, Singapore, South Korea and Taiwan), which have little natural resources, invest a great amount of money on education, whereas members of the oil cartel OPEC spend only half the global average on school children and students .
However, some Gulf countries are exceptions. The UAE government redirects a large part of its oil revenues towards free education for all citizens and Arabic-speaking children of expatriates employed in the public sector. Emirati citizens can also choose between studying at the Emirates University or abroad for higher education (undergraduate, Masters, Ph.D.) thanks to the state's generous scholarships. In Qatar likewise, policy-makers have placed emphasis on education. Citizens are required to attend government-provided education from kindergarten to high school.
In Mongolia, whilst the literacy rate is 98 per cent for men and 96 per cent for women, the government must still invest in people because Mongolians' skills do not match labour needs. Current employees work at 34 per cent in agriculture including herding, 61 per cent in services and just five per cent in industry. Thus, the unemployment rate amounted to 11.5 per cent in 2009, according to the National Statistical Office data . Among them, 45 per cent have secondary education but it is irrelevant to the current market needs. In the coming years, Mongolia will need to leverage its educated young population as more than 40 per cent is below 20 years. For instance, the government could prioritize vocational schools in order to teach unemployed Mongolians job-specific skills that are need, and integrate them in the economy.
Investment by local businesses with international expertise and technology should also generate job opportunities and provide adequate training. With respect to this, the Oyu Tolgoi mine will be supporting an $85 million project to train Mongolian youths for future employment in the mining industry over the next five years, through investment in university equipment, building schools and providing scholarships .
Furthermore, there are great opportunities to translate mineral wealth into growth of the health sector. According to the World Bank, UB, a city of one million, has some of the worst urban pollution levels in the world. Mongolia's Public Health Institute stresses that respiratory diseases caused by the concentration of gasses created by coal burning during winter are among the leading five causes of death in the country . As there has been an increase in health expenditure from 2000 to 2010, health insurance coverage (introduced in 1994) reached 82.6 per cent of the Mongolian population in 2010. However, only 54.5 per cent of the population had access to improved drinking water source in 2009, according to the World Health Organisation (WHO).
Gulf countries' management of their heath care system provides some key insights for Mongolia as it highlights the possibility of promoting economic growth whilst ensuring universal access to health services. For example, in the UAE, a federal law states that all people residing on the Emirati territory must be sponsored with health care insurance by the companies they work for. In Saudi Arabia, the Ministry of Health, which supervises the healthcare system of both the public and private sectors, offers universal healthcare coverage and access to medical care.
In Mongolia, the issue is that the country suffers from a shortage of qualified doctors and other care-givers since most of health care professionals flew back to Russia after the collapse of the USSR. In addition, the government has not achieved universal coverage as it pays the health insurance of senior citizens and vulnerable groups only. However, the introduction of a health insurance system in 1994 that enabled the government to provide health insurance coverage to 92.4 per cent of the population was a step forward.
Mongolia should, therefore, use its massive resources revenues to fund health care training and, ultimately, face the challenges of an aging population. The United Nations Economic and Social Commission for Asia and the Pacific stresses that ageing is a growing concern for Mongolia as the government is trying to balance its economic development and the need to provide adequate services to its growing elderly population. In this regard, there must be independent bodies monitoring the quality standards of government-run hospitals and clinics and private providers alike.
Finally, a transparent government should ensure that a resources boom spurs social development. The "resources curse" theory argues that in mineral-rich countries, governments do not need to be accountable because the state does not tax citizens as it has a guaranteed source of income from natural resources. Hence, this breeds corruption.
The World Bank's Worldwide Governance Indicators show that Mongolia's score for Rule of Law has been trending downwards, from 56 per cent in 2004 to 43 per cent in 2009. It was also ranked the 85th most corrupted country in 2004. In addition, USAID 2010 Mongolia Democracy and Governance Assessment underlines that businessmen dominate politics. It is fair to point out that many of these people have the economic interest of the country in mind. This issue has a significant impact on the economy because investors consider governance and government effectiveness the key development priorities in Mongolia, according to a December 2011 World Bank report .
In this regard, Botswana, which has also a two-million population and is endowed with numerous minerals, offers an inspiring model of how to ensure that natural resources' exploitation benefits the whole population. This African country has developed a Sustainable Budget Index (SBI) to use resource revenue for finance investment expenditure and health and education spending. It has also invested a portion of its natural resources in a Sovereign Wealth Fund that keeps a part of diamond exports' income for future generations.
From another standpoint, a private management of natural resources could offer an alternative. This is a sensitive issue in Mongolia as attempts to privatize Erdenet Copper Mining Company in the late 1990s contributed to significant political discord. However, comparing the Alaska Permanent Fund (APF) and the Alberta Heritage Trust Fund (AHTF), which were set up to manage the American and Canadian government's revenues from oil and natural gas resources and transform mineral assets into other forms of capital, emphasizes the benefits of the private sector. The government-directed AHTF has had limited success because the government failed to invest resources in a productive way. In contrast, APF, an independent corporation, was more successful as it directed half of the mineral revenues into a trust fund that would be distributed to citizens .
Mongolia's booming energy industry offers many opportunities to spur social development in a country where minerals have brought billion-dollar revenues but Mongolians' quality of life has deteriorated. In 2010, the World Bank indicated that Mongolia had the 60th lower income per capita out of 215 countries. To avoid the pitfalls stemming from being overly reliant on commodity production, the country should weigh the pros and cons of resource-abundant states' policy choices in dealing with "the resource curse." Perhaps most importantly, it should avoid the Gulf states' authoritarian tendencies that thwart social progress as revenues from natural resources allow them to police their own people.
On 4 August 2012, the Global Institute For Tomorrow (GIFT) will conduct an executive education programme in Mongolia to create an impact investing fund in the country. It aims at aiding Mongolia in diversifying its economy and de-emphasising reliance on the current resource boom for growth. To enrol or find out more, please e-mail Eric Stryson at estryson@global-
inst.com or visit GIFT at www.global-inst.com.
Table: Mongolia Related Stocks (Source: Bloomberg)
Name | Symbol | $ | Price | Change | +-% | Open | High | Low | Volume | Time | % YTD | % 12 m | |
Indices | ASX 200 | 4,215.63 | 68.39 | 1.65% | 4,159.60 | 4,215.63 | 4,147.20 | 0 | 17-Jan | ||||
Nikkei 225 | 8,466.40 | 88.04 | 1.05% | 8,420.12 | 8,475.66 | 8,413.22 | 0 | 17-Jan | |||||
Hang Seng | 19,627.75 | 615.55 | 3.24% | 19,198.09 | 19,640.28 | 19,173.29 | 0 | 17-Jan | |||||
MSE Top 20 | 20,260.20 | 12.10 | 0.06% | 20,260.20 | 20,260.20 | 20,260.20 | 0 | 17-Jan | |||||
FTSE 100 | 5,693.95 | 36.51 | 0.65% | 5,657.44 | 5,724.41 | 5,657.44 | 863,519 | 17-Jan | |||||
TSX Composite | 12,232.83 | -25.77 | -0.21% | 12,302.52 | 12,316.96 | 12,198.88 | 276,862,237 | 17-Jan | |||||
S&P 500 | 1,293.67 | 4.58 | 0.36% | 1,290.22 | 1,303.00 | 1,290.22 | 0 | 17-Jan | |||||
ASX | Aspire Mining | AUD | 0.355 | 0.01 | 2.90% | 0.345 | 0.36 | 0.345 | 1,117,299 | 17-Jan | -4.05% | -49.65% | |
Blina Minerals | AUD | 0.004 | 0 | 0.00% | 0.004 | 0.004 | 0.004 | 0 | 16-Jan | -20.00% | -77.78% | ||
Cougar Energy | AUD | 0.015 | 0 | 0.00% | 0.015 | 0.016 | 0.015 | 890,000 | 17-Jan | -6.25% | -68.75% | ||
Draig Resources | AUD | 0.485 | 0.03 | 6.59% | 0.465 | 0.485 | 0.46 | 608,223 | 17-Jan | -36.18% | |||
FeOre | AUD | 0.275 | 0 | 0.00% | 0.275 | 0.275 | 0.275 | 0 | 11-Jan | -1.79% | |||
General Mining | AUD | 0.045 | 0 | 0.00% | 0.045 | 0.045 | 0.045 | 0 | 13-Jan | 9.76% | -67.86% | ||
Guildford Coal | AUD | 0.77 | 0.015 | 1.99% | 0.74 | 0.78 | 0.725 | 840,479 | 17-Jan | 2.67% | 4.05% | ||
Haranga Resources | AUD | 0.34 | 0.01 | 3.03% | 0.335 | 0.345 | 0.33 | 169,043 | 17-Jan | 19.30% | -48.87% | ||
Hunnu Coal | AUD | 0 | |||||||||||
Modun Resources | AUD | 0.041 | -0.001 | -2.38% | 0.044 | 0.044 | 0.041 | 170,000 | 17-Jan | -8.89% | 272.73% | ||
Mongolian Res Corp | AUD | 0.125 | 0 | 0.00% | 0.125 | 0.125 | 0.125 | 0 | 30-Dec | 0.00% | -63.24% | ||
Robe Australia | AUD | 0.02 | 0.002 | 11.11% | 0.019 | 0.022 | 0.019 | 9,308,070 | 17-Jan | 42.86% | 135.29% | ||
Voyager Resources | AUD | 0.076 | 0.002 | 2.70% | 0.077 | 0.079 | 0.075 | 7,195,044 | 17-Jan | 11.76% | 50.06% | ||
Xanadu Mines | AUD | 0.335 | 0 | 0.00% | 0.335 | 0.335 | 0.335 | 60,163 | 17-Jan | -2.90% | -50.74% | ||
MSE A Board | Aduunchuluun | MNT | 5,000 | -305 | -5.75% | 5,350 | 5,350 | 5,000 | 2,972 | 17-Jan | -16.67% | -58.33% | |
APU | MNT | 3,900 | 0 | 0.00% | 3,900 | 3,900 | 3,900 | 30 | 17-Jan | -7.14% | 64.56% | ||
Atar Urguu | MNT | 37,700 | 0 | 0.00% | 37,500 | 37,700 | 37,500 | 0 | 16-Jan | ||||
Baganuur | MNT | 10,998 | 387 | 3.65% | 10,990 | 10,998 | 10,990 | 24 | 17-Jan | -16.05% | 4.74% | ||
Mogoin Gol | MNT | 32,000 | 0 | 0.00% | 32,000 | 32,000 | 32,000 | 0 | 16-Jan | 3.23% | 139.88% | ||
BDSec | MNT | 3,500 | 0 | 0.00% | 3,500 | 3,500 | 3,500 | 0 | 13-Jan | 0.00% | 40.00% | ||
Bayangol Hotel | MNT | 35,900 | 400 | 1.13% | 35,900 | 35,900 | 35,900 | 114 | 17-Jan | -0.14% | 51.48% | ||
Bayanteeg | MNT | 0 | |||||||||||
UB BUK | MNT | 0 | |||||||||||
Eermel | MNT | 3,070 | -30 | -0.97% | 3,200 | 3,200 | 3,070 | 36 | 17-Jan | 9.64% | 28.72% | ||
Gobi | MNT | 5,100 | 90 | 1.80% | 5,100 | 5,101 | 5,100 | 77 | 17-Jan | -0.97% | -7.27% | ||
Gutal | MNT | 4,980 | 0 | 0.00% | 4,980 | 4,980 | 4,980 | 10 | 17-Jan | 477.73% | |||
Hi B Oil | MNT | 170 | 0 | 0.00% | 170 | 170 | 170 | 1,300 | 17-Jan | -10.53% | -2.86% | ||
Khukh Gan | MNT | 185 | 1 | 0.54% | 190 | 190 | 185 | 2,060 | 17-Jan | -7.50% | 2.78% | ||
Hermes Centre | MNT | 66 | -1 | -1.49% | 68 | 68 | 66 | 4,892 | 17-Jan | 17.86% | 24.53% | ||
Jenko Tour Bureau | MNT | 91 | -1 | -1.09% | 92 | 101 | 91 | 1,222 | 17-Jan | -3.19% | 1.11% | ||
Telecom Mongolia | MNT | 2,655 | 0 | 0.00% | 2,700 | 2,701 | 2,655 | 0 | 13-Jan | -1.67% | -29.20% | ||
Mongolia Dev Res | MNT | 949 | 0 | 0.00% | 950 | 950 | 949 | 0 | 13-Jan | -6.04% | -27.00% | ||
Moninjbar | MNT | 130 | 0 | 0.00% | 130 | 130 | 130 | 0 | 13-Jan | 0.00% | 18.18% | ||
Mongol Nekhmel | MNT | 4,100 | 0 | 0.00% | 3,900 | 4,199 | 3,800 | 0 | 12-Jan | 25.00% | 0.00% | ||
Hotel Mongolia | MNT | 850 | 50 | 6.25% | 850 | 850 | 850 | 10 | 17-Jan | -5.45% | 49.12% | ||
Darkhan Nekhii | MNT | 7,699 | -381 | -4.72% | 8,000 | 8,000 | 6,900 | 54 | 17-Jan | 24.18% | 67.37% | ||
Nak Tulsh | MNT | 180 | 0 | 0.00% | 180 | 180 | 180 | 0 | 13-Jan | 2.86% | -43.75% | ||
Olloo | MNT | 230 | -5 | -2.13% | 230 | 230 | 230 | 3,063 | 17-Jan | -3.77% | 45.57% | ||
Remikon | MNT | 173 | -1 | -0.57% | 173 | 173 | 170 | 67,011 | 17-Jan | -1.70% | 113.58% | ||
Sharyn Gol | MNT | 10,400 | -100 | -0.95% | 10,500 | 10,500 | 10,400 | 330 | 17-Jan | -8.37% | -9.57% | ||
Shivee Ovoo | MNT | 14,620 | -80 | -0.54% | 14,900 | 14,900 | 14,601 | 240 | 17-Jan | -4.44% | -2.53% | ||
Sor | MNT | 3,600 | 0 | 0.00% | 3,600 | 3,600 | 3,600 | 0 | 16-Jan | -5.76% | 217.18% | ||
Suu | MNT | 65,000 | 0 | 0.00% | 65,000 | 65,000 | 65,000 | 0 | 11-Jan | 0.00% | 169.71% | ||
Tav | MNT | 0 | |||||||||||
Talkh Chikher | MNT | 11,000 | -100 | -0.90% | 11,000 | 11,000 | 11,000 | 50 | 17-Jan | 4.76% | 161.91% | ||
Tavantolgoi | MNT | 10,000 | 0 | 0.00% | 10,000 | 10,010 | 10,000 | 986 | 17-Jan | -9.09% | 66.67% | ||
State Dept Store | MNT | 482 | -18 | -3.60% | 490 | 500 | 481 | 2,275 | 17-Jan | -16.90% | 16.14% | ||
Ulaanbaatar Hotel | MNT | 45,000 | 0 | 0.00% | 45,000 | 45,000 | 45,000 | 30 | 17-Jan | 0.00% | 63.64% | ||
Mongol Savkhi | MNT | 2,560 | -55 | -2.10% | 2,560 | 2,560 | 2,560 | 5 | 17-Jan | -1.04% | 365.46% | ||
Zoos Goyol | MNT | 826 | -24 | -2.82% | 826 | 826 | 826 | 47 | 17-Jan | -12.13% | -0.48% | ||
HKEx | Solartech Int'l | HKD | 0.18 | 0.008 | 4.65% | 0.173 | 0.182 | 0.173 | 1,645,400 | 17-Jan | 1.69% | -75.00% | |
Winsway | HKD | 2.12 | 0.09 | 4.43% | 2.06 | 2.12 | 2.04 | 14,238,000 | 17-Jan | -7.42% | -52.72% | ||
SouthGobi Resources | HKD | 47.15 | -0.25 | -0.53% | 47.2 | 47.5 | 47 | 69,500 | 17-Jan | 3.51% | -56.90% | ||
China Gold | HKD | 23.45 | 0.95 | 4.22% | 23 | 23.5 | 23 | 81,200 | 17-Jan | 28.85% | -41.88% | ||
CNNC Int'l | HKD | 2.32 | 0.09 | 4.04% | 2.25 | 2.34 | 2.23 | 959,000 | 17-Jan | 14.85% | -67.09% | ||
Real Gold Mining | HKD | 8.81 | 0 | 0.00% | 8.81 | 8.81 | 8.81 | 0 | 17-Jan | 0.00% | -30.91% | ||
Mongolia Energy | HKD | 0.7 | 0.04 | 6.06% | 0.66 | 0.71 | 0.66 | 17,272,130 | 17-Jan | 0.00% | -70.71% | ||
Zijin Mining | HKD | 3.43 | 0.38 | 12.46% | 3.06 | 3.45 | 3.06 | 66,783,974 | 17-Jan | 17.47% | -21.98% | ||
Mongolia Inv Group | HKD | 0.05 | 0 | 0.00% | 0.049 | 0.051 | 0.048 | 7,222,000 | 17-Jan | 8.70% | -59.02% | ||
North Asia Resources | HKD | 0.23 | 0.015 | 6.98% | 0.238 | 0.238 | 0.218 | 95,000 | 17-Jan | 3.60% | -76.29% | ||
China Daye Non-Fer. | HKD | 0.425 | 0.005 | 1.19% | 0.415 | 0.43 | 0.405 | 4,354,500 | 17-Jan | -7.61% | -29.17% | ||
Bestway Int'l | HKD | 0.052 | -0.004 | -7.14% | 0.056 | 0.056 | 0.05 | 130,000 | 17-Jan | -14.75% | -60.00% | ||
Asia Coal | HKD | 0.09 | -0.004 | -4.26% | 0.089 | 0.09 | 0.089 | 30,000 | 17-Jan | -14.29% | -62.96% | ||
Mongolian Mining | HKD | 6 | 0.24 | 4.17% | 5.78 | 6.08 | 5.78 | 1,995,500 | 17-Jan | 2.74% | -42.31% | ||
SGX | LionGold | SGD | 0.875 | 0 | 0.00% | 0.875 | 0.88 | 0.87 | 10,174,000 | 17-Jan | 0.57% | 25.90% | |
LSE | Central Asia Metals | GBp | 60.5 | 2.375 | 4.09% | 58.5 | 60.5 | 58 | 550,445 | 17-Jan | 6.37% | -32.78% | |
Petro Matad | GBp | 34.75 | 0 | 0.00% | 34.75 | 36.25 | 34.75 | 121,181 | 17-Jan | 40.40% | -71.04% | ||
Metal-Tech | GBp | 4.25 | 0 | 0.00% | 4.25 | 4.25 | 4.25 | 0 | 17-Jan | 13.33% | -71.19% | ||
Nova Resources | GBp | 8.5 | 0 | 0.00% | 8.5 | 8.5 | 8.25 | 270,400 | 17-Jan | 257.90% | |||
Origo Partners | GBp | 32.75 | -1.25 | -3.68% | 34 | 34 | 32.75 | 135,600 | 17-Jan | -6.43% | -22.94% | ||
Canada | Aberdeen Int'l | CAD | 0.62 | 0.01 | 1.64% | 0.6 | 0.62 | 0.6 | 84,215 | 17-Jan | -4.62% | -14.00% | |
Altan Rio Minerals | CAD | 0 | |||||||||||
Blue Zen Mem. Parks | CAD | 0.1 | 0.05 | 100.00% | 0.1 | 0.1 | 0.1 | 10,000 | 17-Jan | 100.00% | -91.30% | ||
Centerra Gold | CAD | 18.21 | -0.49 | -2.62% | 18.84 | 19.1 | 18.21 | 256,037 | 17-Jan | 1.17% | 8.01% | ||
China Gold | CAD | 3.01 | 0.02 | 0.67% | 3.08 | 3.17 | 3.01 | 162,861 | 17-Jan | 17.58% | -40.75% | ||
Desert Eagle Res | CAD | 0.27 | 0 | 0.00% | 0 | 5-Jan | 0.00% | -86.36% | |||||
Denison Mines | CAD | 1.72 | -0.19 | -9.95% | 1.87 | 1.9 | 1.689 | 6,075,482 | 17-Jan | 35.43% | -48.04% | ||
East Asia Minerals | CAD | 0.51 | 0 | 0.00% | 0.52 | 0.54 | 0.51 | 99,100 | 17-Jan | 8.51% | -92.18% | ||
Erdene Resource | CAD | 0.385 | 0.04 | 11.59% | 0.355 | 0.385 | 0.355 | 107,799 | 17-Jan | 2.67% | -74.67% | ||
Entree Gold | CAD | 1.24 | -0.02 | -1.59% | 1.25 | 1.33 | 1.2 | 66,375 | 17-Jan | 0.00% | -58.25% | ||
Fortress Minerals | CAD | 3.76 | -0.29 | -7.16% | 3.76 | 3.76 | 3.76 | 350 | 17-Jan | -8.29% | -24.80% | ||
Gulfside Minerals | CAD | 0.085 | -0.005 | -5.56% | 0.085 | 0.085 | 0.085 | 53,000 | 17-Jan | 0.00% | -5.56% | ||
Ivanhoe Energy | CAD | 1.08 | -0.02 | -1.82% | 1.12 | 1.14 | 1.072 | 348,565 | 17-Jan | -3.57% | -68.05% | ||
Ivanhoe Mines | CAD | 19.29 | -0.86 | -4.27% | 20.57 | 20.8 | 19 | 1,546,245 | 17-Jan | 6.63% | -22.84% | ||
Kincora Copper | CAD | 0.29 | -0.02 | -6.45% | 0.3 | 0.3 | 0.29 | 12,015 | 17-Jan | -6.45% | 48.72% | ||
Khan Resources | CAD | 0.215 | 0.02 | 10.26% | 0.185 | 0.22 | 0.185 | 29,000 | 17-Jan | 7.50% | -57.00% | ||
Lucky Strike | CAD | 0.36 | 0.03 | 9.09% | 0.35 | 0.36 | 0.35 | 6,500 | 17-Jan | 1.41% | -72.09% | ||
Meritus Minerals | CAD | 0.05 | 0 | 0.00% | 0.045 | 0.05 | 0.045 | 40,000 | 17-Jan | 100.00% | -66.67% | ||
Manas Petroleum | CAD | 0.15 | 0 | 0.00% | 0.16 | 0.16 | 0.135 | 748,800 | 17-Jan | 3.45% | 0.00% | ||
Prophecy Coal | CAD | 0.455 | 0.035 | 8.33% | 0.42 | 0.48 | 0.4 | 3,609,170 | 17-Jan | 10.98% | -45.18% | ||
Puget Ventures | CAD | 0.49 | 0 | 0.00% | 0 | 17-Sep | |||||||
SouthGobi Resources | CAD | 5.85 | -0.43 | -6.85% | 6.32 | 6.32 | 5.75 | 129,075 | 17-Jan | -2.50% | -59.63% | ||
Solomon Resources | CAD | 0.08 | 0 | 0.00% | 0.07 | 0.08 | 0.07 | 26,000 | 17-Jan | 14.29% | -57.89% | ||
Undur Tolgoi Minerals | CAD | 0.2 | 0 | 0.00% | 0.2 | 0.2 | 0.2 | 0 | 12-Jan | 0.00% | |||
Mongolia Growth Grp | CAD | 4.05 | 0.01 | 0.25% | 4.05 | 4.2 | 4.05 | 9,200 | 17-Jan | 3.85% | |||
US | Denison Mines | USD | 1.71 | 0.14 | 8.92% | 1.87 | 1.88 | 1.66 | 2,982,937 | 17-Jan | 36.80% | -48.65% | |
Entree Gold | USD | 1.22 | -0.01 | -0.81% | 1.28 | 1.3 | 1.18 | 100,179 | 17-Jan | 1.67% | -60.90% | ||
Ivanhoe Energy | USD | 1.06 | -0.02 | -1.85% | 1.09 | 1.13 | 1.06 | 962,937 | 17-Jan | -5.36% | -66.35% | ||
Ivanhoe Mines | USD | 18.98 | -0.86 | -4.33% | 20.3 | 20.46 | 18.75 | 4,010,723 | 17-Jan | 7.11% | -26.83% | ||
Manas Petroleum | USD | 0.14 | 0.002 | 1.45% | 0.128 | 0.14 | 0.128 | 1,723,425 | 17-Jan | -5.08% | -77.24% | ||
Mongolia Growth Grp | USD | 3.9935 | 0.0435 | 1.10% | 3.9935 | 3.9935 | 3.9935 | 2,000 | 17-Jan | 3.86% | |||
Blue Wolf MGL | USD | 9.53 | -0.1 | -1.04% | 9.55 | 9.55 | 9.53 | 4,044 | 17-Jan | -0.94% | |||
Blue Wolf MGL Unit | USD | 10.2 | 0.08 | 0.79% | 10.2 | 10.2 | 10.2 | 100 | 17-Jan | 1.49% |
---
"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.
Suite 1213 · Level 12 · 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 AFSLicense 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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