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Tuesday, February 14, 2012

[CPSI NewsWire: Foster Stockbroking - Voyager Resources: SPEC BUY, Target Price A$0.11

CPSI NewsWire brings you market updates on Mongolia, compiled by CPS International, a Mongolian marketing arm of CPS Securities, a Perth, WA based stockbroking and corporate advisory firm, specialising in capital raising for mining and junior stocks.

Wish to subscribe or unsubscribe? Let me know.

Mogi: I will stop the daily stock quotes and instead will periodically send updated stock lists.

 

Foster Stockbroking: Voyager Resources – SPEC BUY, Target Price A$0.11

Initiation – Emerging Copper Explorer in 'Minegolia'

February 14 (Foster Stockbroking) --

EVENT:

·         We initiate on Voyager Resources Ltd (VOR.ASX) with a SPEC BUY recommendation and initial price target of $0.11/share.

INVESTMENT HIGHLIGHTS:

·         Exciting drill results at flagship KM Project in Mongolia: Since acquiring the KM Project (VOR – 80%) in early 2011, VOR has completed extensive geophysics and geochem followed by an aggressive 35,000m RC and DD drill program across five key prospects. Drilling to date has highlighted the potential for large mineralised porphyry stocks at depth sitting beneath a series of shallow hydrothermal breccia pipes, similar to that seen in large scale Chilean deposits. Results to date have impressed and include shallow intercepts of 116m at 2.4% Cu and 7.2g/t Au (from 30m) and 50m at 3.5% Cu (from 30m). The Project is located within the same geological terrain as one of the world's largest undeveloped copper-gold deposits, the giant Oyu Tolgoi owned by Ivanhoe Mines and RIO. Based on work completed to date management have released a target resource of 50Mt – 150Mt at 0.8% - 1.0% Cu across the breccia pipes only (i.e. excluding the potential porphyry stocks) with a maiden resource due mid 2012.

·         Emerging mineral province: Mongolia is attracting significant investment from foreign miners and investors seeking exposure to the massively underexplored and prospective mineral wealth of the country and the close proximity to China, the world's largest buyer of metals. Oyu Tolgoi and Tavan Tolgoi are two of the world's largest undeveloped copper and coal deposits respectively located in the South Gobi region of Mongolia and we consider it highly likely that further major discoveries will be made as exploration expenditure continues to increase across the country. The Government is supportive of foreign capital as a means to develop large scale deposits such as Oyu Tolgoi and Tavan Tolgoi. Heavyweights such as RIO, BHP, Vale, Peabody, Xstrata, Banpu and Ivanhoe all now have an active presence in Mongolia as do trading houses Noble and Trafigura.

·         Proven management team: The board and senior management team of VOR have a proven track record of adding significant shareholder value via the acquisition and exploration of assets in Mongolia. This was best illustrated last year when their Mongolian coal vehicle, Hunnu Coal (HUN.ASX), was acquired by Thai giant Banpu for almost $500m in cash at $1.80/sh. HUN listed in early 2010 at $0.20/sh.

·         M&A in Mongolia to continue: In our view M&A will remain an ongoing theme in Mongolia throughout 2012 with the issuance of new exploration licences being put on hold for the foreseeable future. Consequently the only way for corporates to gain exposure to the prospectivity of Mongolia is via M&A. This was highlighted last year with Banpu's takeover of Hunnu Coal. Other transactions which have the potential to act as further catalysts for the region include the multi-billion dollar IPO of state-owned Erdenes Tavan Tolgoi in London prior to the elections (June 2012) and the potential takeover of HK-listed SouthGobi Resources with Ivanhoe Mines' 57% stake likely to be divested should major shareholder RIO acquire Ivanhoe, as is widely anticipated.

RECOMMENDATION:

·         We initiate on VOR with a SPEC BUY recommendation and initial price target of $0.11/sh, ~55% above the current share price.

·         We have derived our initial valuation for the flagship KM Project via in-situ methodology and based upon our target maiden resource of 300kt contained Cu.

·         In addition to ongoing assay results (50% backlog), met test work and potential regional consolidation, we expect the results from the current deeper drilling program to act as a key catalyst for the share price in the near term.

·         VOR is funded to complete the current 50,000m drilling program with cash of ~$5m, however will likely need to raise further capital in coming months.

Link to Fostock Morning Note on VOR

 

Eumeralla Resources Prospectus Out

February 13 (Mogi) Eumeralla Resources Limited (EUM), a CPS Securities brokered (Lead Manager and Broker) and Garrison Capital advised (Corporate Advisor to the Company) company has lodged its Prospectus with the ASX.

Please find EUM's CEO Michael Hynes' Letter to Shareholders from its Prospectus below.

EUM's expected quotation date is 9 March 2012.

-----

LETTER TO SHAREHOLDERS

Dear Investor,

On behalf of the directors of Eumeralla Resources Ltd (Company), I am delighted to invite you to become a shareholder of the Company.

The Company is seeking to raise $3,500,000 through an issue of 17,500,000 Shares at a price of $0.20 per Share.

The Company holds a granted minerals exploration license located in Mongolia (License) which covers an area of 12,657 hectares and encompasses the historical Chuluun Khoroot tungsten mine which was active during the period 1945-1955. The License area is located in north-eastern Mongolia approximately 20 km north of the town of Dashbalbar, 850 km north-east of Ulaanbaatar and 85 km north-west of the Solowevsk-Choibalsan railway.

The Chuluun Khoroot tungsten deposit was discovered in 1944 and is located in the southeastern part of the license area. Tungsten and subordinate molybdenum mineralisation are associated with a series of quartz veins within the Chuluun Khoroot granite and surrounding sedimentary rocks. Approximately 23 quartz veins have been identified with the "main vein" and number 18 vein having been the focus of past exploration. The main vein is approximately 500 m long, strikes northwest-southeast and is essentially vertical. While not having a JORC resource, we believe the License is sufficient prospective to warrant further exploration. Concurrent with undertaking exploration activities on the Project, the Company intends to evaluate new projects for potential acquisition. 

Detailed information about the Offer and the Company's business, as well as the risks of investing in the Company are set out in this Prospectus which I encourage you to read carefully and if in doubt, consult your stockbroker or other financial advisor.

My fellow Directors and I recommend the Offer to you and look forward to welcoming you as a Shareholder.

Yours sincerely

Michael Hynes

Chief Executive Officer

Link to Prospectus

 

SouthGobi Resources commissions dry coal handling facility at Ovoot Tolgoi Mine

February 13 (Proactive Investors USA & Canada) SouthGobi Resources (TSE:SGQ) (HK:1878) announced Monday it has commissioned and started-up the dry coal-handling facility at its Ovoot Tolgoi coal mine in southern Mongolia. 

The facility has a capacity to process nine million tonnes of run-of-mine coal per year. It includes a 300-tonne-capacity dump hopper, which will receive run-of-mine coal to feed a rotary breaker, and screens that will size coal to a maximum of 50 millimetres, rejecting oversize ash. 

"The new dry coal-handling facility will improve the quality of our coal and enable us to achieve better product consistency," said president and CEO, Alexander Molyneux

"It represents the first step towards more integrated processing at Ovoot Tolgoi, which will create more value than mining and selling raw coal."

The company said the facility will be upgraded this year to include dry air separation, as well as covered load-out conveyors with fan stackers to transfer processed coals to stockpiles that will enable blending. 

SouthGobi Resources is focused on the exploration and development of its Permian-age metallurgical and thermal coal deposits in Mongolia's South Gobi region.

The company's flagship coal mine, Ovoot Tolgoi, produces and sells coal to customers in China, with SouthGobi planning to supply a wide range of coal products to markets in Asia.

Total proven and probable surface coal reserves calculated at Ovoot Tolgoi as of December 11, 2010, were estimated to be 106.8 million tonnes. Approximately 59 percent of the reserves were classified in the proven reliability or assurance category, with the remaining 41 percent in the probable category.

In January, the coal supplier said it sold more than four million tonnes of coal in 2011, 58 percent more than it did in 2010. 

In the fourth quarter, the company produced 1.34 million tonnes, resulting in full year 2011 output of around 4.57 million tonnes - up 64 percent from a year earlier.

SouthGobi's stock on the Toronto Stock Exchange is up more than 19 percent so far in 2012.

Link to article

Link to SGQ release

 

HK's Winsway moves closer to $1 bln Grand Cache deal

* HK-listed Winsway to put Grand Cache bid to vote on Feb. 28

* Winsway, Marubeni secure $400 mln loans to fund buy

HONG KONG Feb 13 (Reuters) - Winsway Coking Coal Holdings Ltd (HK:1733) said on Monday it received regulatory approval to seek a shareholders' meeting on a proposed purchase of Canadian coal miner Grand Cache Coal Corp, moving closer to the nearly $1 billion takeover.

The company secured Hong Kong stock exchange approval to send its formal bid proposal to a shareholder vote on Feb. 28.

Winsway, an importer and distributor of coking coal from Mongolia into China, made the bid of about C$984.7 million ($991 million) for Grand Cache in October with Japanese trading house Marubeni Corp, with two-thirds in cash and one-third from bank loans.

Winsway and Marubeni secured up to $400 million in loans to fund the purchase on Friday, the Hong-Kong listed company said in a separate statement. The 35-month loan will pay interest equal to 3-month Libor plus 4.5 percent a year, or 5.006 percent, according to a Winsway filing in Hong Kong.

Shares in Winsway came under pressure last month after fraud allegations from a mysterious research firm called Jonestown Research. Winsway refuted the allegations, calling the report flawed and full of errors.

Winsway's stock tumbled 14 percent over two days after the Jonestown Research allegations surfaced, but has gained nearly 20 percent since then. The stock was down 0.9 percent at HK$2.15 in late afternoon trading on Monday.

Link to article

 

STOCK EXCHANGE WEEKLY REVIEW

Ulaanbaatar, Mongolia, February 13 /MONTSAME/ Five stock trades were held at Mongolia's Stock Exchange on February 6-10. In overall, 1.4 million shares were sold of 84 joint-stock companies totaling MNT 663.1 million.

Index TOP-20 was 20924.32 points increasing 859.64 units or 4.3% against the week earlier. The total market capitalization was set at MNT two trillion 74.5 billion increasing MNT 71.8 billion or 3.6%.

Shares of "Bayalag nalaikh" /47.5%/, "Mongol shevro" /37.3%/, and "Nomt khairkhan" /32.3%/ increased, but shares of "Sav shim" /27.7%/, "Khishig uul" /15.0%/, and "Khargia" /15.0%/ decreased. 56 stocks closed higher, 17 shares declined and 11 shares remained unchanged.

Shares of "Remikon" /335.3 thousand units/, "Khokh gan" /300.2 thousand units/ and "Hermes center" /283.0 thousand units/ were the most actively traded in terms of trading volume and in terms of trading value--"APU" (MNT 123.3 million), "Mongol shiltgeen" (MNT 71.5 million), and "Remikon" (58.1 million).

Link to article

 

Монголын эдийн засгийн форум цуврал хэлэлцүүлэг: "Эдийн засгийн өсөлт ба санхүүгийн салбар"

February 14 (MEF) Монголын эдийн засгийн чуулганыг угтан зохион байгуулж байгаа цуврал хэлэлцүүлэг 2 сарын 14 буюу Өнөөдөр Эдийн засгийн өсөлт ба санхүүгийн салбар сэдвээр үргэлжилж байна. Хэлэлцүүлэг 16:00 цагт Хууль зүйн үндэсний хүрээлэн дээр болно. Таныг хүрэлцэн ирэхийг урьж байна. 

Хэлэлцүүлгийн хөтөлбөрийг хавсралтаар хүргэж байна. 

Дэлгэрэнгүй мэдээллийг http://meforum.mn/ сайтаас авах боломжтой. 

Link to MEF

 

Parliament to recess on Tuesday

February 13 (news.mn) Speaker D.Demberel has ordered Parliament to go into recess on Tuesday.

On Monday, the MPP and DP caucuses will meet and the Standing Committees will hold meetings. 

The Speaker decided that Parliament should discuss draft laws on local elections, on the courts, on rules for judges, and on rules for lawyers, as well as proposed amendments to the 2012 state budget, the social insurance fund, and Parliament's 39th protocol on the Tavantolgoi mining project. 

On Tuesday morning, Parliament will be in session and the Standing Committees will meet to discuss the first version of the draft law on local elections. After those meetings, Parliament will recess.

Link to article

 

MONGOLIANS WILL WORK THIS SATURDAY

Ulaanbaatar, Mongolia, February 13 /MONTSAME/ February 18th, Saturday, will be a working day.

It will replace February 24, Friday, the third day of the Lunar New Year, the holiday.

This decision was made at the irregular cabinet meeting on Monday.

Link to article

 

DP FACTION MEETS (on i.e. TT …)

Ulaanbaatar, Mongolia, February 13 /MONTSAME/ The faction of the Democratic Party (DP) discussed on Monday a draft amendment to the law on local election and matters on exploiting the Tavan tolgoi coal deposit. It has been considered as necessity to pass the draft amendment this year's autumn session.

A head of the faction Ch.Saikhanbileg said the faction is ready to prolong the parliamentary session until Wednesday if many agendas must be tackled.

He said the local election law must be passed in the end of this session so that "the local election runs without any cheating or any illegal things", adding the General Election Committee (GEC) should ensure all conditions for a fair election.

The DP has submitted to parliament a bill on local election for running it together with parliamentary election, whereas the Mongolian People's Party has presented to parliament a draft law about organizing the local election on October of 2012. Here Ch.Saikhanbileg underlined that the DP is strongly willing to run the both elections at the same time.

Then the faction heard a report from its working group on altering the 39th parliamentary resolution on exploiting the TT coal deposit. This group is talking with another working group, set up by parliament, on the matter. "We consider that the head of the Cabinet Secretariat Ch.Khurelbaatar made last week an irresponsible statement saying that it is possible to distribute a cash of MNT one million to each person. In fact, MNT 2.8 trillion has not been placed in this year's budget yet," Saikhanbileg stressed. Any decision must be made on this issue during the autumn session, he added.

The DP faction also considered as necessary to approve a budget clarification of the budget for 2012 and draft laws on abolishing differences in the pensions, and on health insurance in the autumn session. According to Ch.Saikhanbileg, the majority of draft laws are being discussed.

Link to article

 

DP gets 1,280 new members

February 13 (news.mn) 1,280 people joined the DP in a ceremony at the Government House on Friday. 

DP Chairman N.Altankhuyag, Tuv aimag DP Chairman D.Dorjpurev, MPs G.Batkhuu, P.Altankhuyag, and Kh.Temuujin, and members of National Consultative Committee of the Tuv aimag DP attended the ceremony, during which the new members were given party certificates. 

N.Altankhuyag expressed his gratefulness to the new members for choosing the DP. He also mentioned the party's series of "Mongol Citizen 2020" forums held around the country to solicit input from citizens. He said the goal of the forums was to prepare a development program that would improve the lives of all Mongolians, and he said it was important for every citizen to contribute to the implementation of the program.

N.Altankhuyag emphasized that young people believe in the DP, as shown by the high number of them who are members of the party. He wished them further success.

The new members applied for membership from Tuv aimag, including 120 from Batsumber soum. Residents of each of Tuv aimag's 27 soums applied to join the DP. After receiving their certificates, the new DP members toured the Government House. 

Link to article

 

50,000 households using low-smoke stoves

February 13 (news.mn) The Clean Air Project of Millennium Challenge Account – Energy and Environment Project is working to reduce air pollution of Ulaanbaatar by making buildings more energy efficient, by improving insulation in Ger district homes, and by promoting the use of energy efficient stoves.

The project is making available 80,000 energy efficient stoves at reduced prices to Ger district households this winter. 70,000 are being supplied by Selenge Construction LLC and 10,000 by Royal Ocean LLC.

So far the clear favorite is Royal Ocean's "Dul" model. People prefer the "Dul" because it is easy to set up and can be used with a traditional Mongolian cooking pot. But because the "Dul" is not as widely available, long lines often form at stores where it is sold.

The companies have supplied 50,000 stoves to residents of five districts of the capital so far. If a typical household has four or five family members, the project is serving about 200,000 citizens.

Employees of the companies selling the stoves give customers safety advice and lessons on how to use the stoves. They also get feedback from customers who have used the stoves. Therefore, the number of people using the stoves improperly or unsafely is reduced.

Also, the companies are cooperating with state organizations, the Clean Air Project, and the Clean Air Fund to organize a public-awareness campaign to teach people how to use the stoves properly.

Link to article

 

"Minetech 2012" fair to be held

February 13 (news.mn) The Mongolian National Mining Association is organizing "Minetech 2012," an international mining equipment fair, at the Misheel Expo from March 28 to 30.
This will be the fifth annual Minetech fair. On display will be a variety of mining equipment, technology, and techniques. Organizers also noted that mining companies and industry experts can trade advice at the fair.

Also, mining sector employers, producers, suppliers, and service sector employees can widen their relations with foreign counterparts. The registration deadline for the fair is March 1.

Link to article

 

CPI up 2.8% MoM, 10.2% YoY

High-ranking officials declare their income

February 13 (news.mn) In accordance with the law on anticorruption, high-ranking government officials are required to declare their 2011 property holdings and incomes to the Anti Corruption Authority (ACA) by February 15.  270 high-ranking officials are required to declare their incomes. By the end of last week, 160 already had. Another 58,000 lower-ranking state workers are also required to report their incomes by February 15, but only to the state agency that employs them, not to the ACA. 

So far, 46,100 of those officials have already filed their declarations.

Link to article

 

Chamber of Commerce Announces Best Investors at "Silk Road Awards"

February 10 (MNCCI) The Mongolian National Chamber of Commerce and Industry (MNCCI) hold the Silk Road Awards once in two years.

The awards recognize efforts by foreigner and foreign organizations, programmes, projects and foreign invested companies working towards the development of Mongolia. Also this event has Mongolian traditional entertainment to introduce and promote Mongolian culture and Tsagaan Sar to the foreigners living in Mongolia. Silk Road Awards Ceremony was held on February 9th 2012.

SELECTED NOMINATORS:

- MONGOL ALTAN TOS CO., LTD
as the BEST INVESTOR- INTRODUCER OF ADVANCED TECHNOLOGY in Mongolia

- SANKOU SOLAR MONGOLIA CO.,LTD
as the BEST GREEN INVESTOR in Mongolia

- MOBICOM CORPORATION
as the BEST SOCIALLY RESPONSIBLE INVESTOR in Mongolia

- CIS MONGOLIA CO.,LTD
as the BEST INVESTOR ON CREATING EMPLOYMENT in Mongolia

- OYU TOLGOI LLC
as the BEST INVESTOR SUPPORTER OF NATIONAL SMEs in Mongolia

- "GREEN GOLD" PASTURE ECOSYSTEM MANAGEMENT PROJECT
as the MOST VALUED CONTRIBUTOR IN SUSTAINABLE, INCLUSIVE ECONOMIC GROWTH in Mongolia

- MONGOLIA ENERGY PROJECT
as the MOST VALUED CONTRIBUTOR IN SOCIAL DEVELOPMENT in Mongolia

- COPING WITH DESERTIFICATION PROJECT
as the MOST VALUED CONTRIBUTOR IN DEVELOPING GREEN ECONOMY, GREEN BUSINESS, SUSTAINABLE ENVIRONMENT PRACTICES in Mongolia

- 2-STEP-LOAN PROJECT FOR SME DEVELOPMENT AND ENVIRONMENT OF PROTECTION, JICA
as the MOST VALUED CONTRIBUTOR IN POVERTY REDUCTION,SUSTAINABLE LIVELIHOOD DEVELOPMENT in Mongolia

- UNITED NATIONS DEVELOPMENT PROGRAMME 
as the MOST VALUED CONTRIBUTOR IN POVERTY REDUCTION,SUSTAINABLE LIVELIHOOD DEVELOPMENT in Mongolia

- SUSTAINABLE LIVELIHOODS PROJECT- 2
as the MOST VALUED CONTRIBUTOR IN IMPLEMENTING PUBLIC PRIVATE DIALOGUE PARTNERSHIP in Mongolia

- MERCY CORPS
as the MOST VALUED CONTRIBUTOR IN IMPLEMENTING PUBLIC PRIVATE DIALOGUE PARTNERSHIP in Mongolia

- ASIAN DEVELOPMENT BANK
as the MOST VALUABLE CONTRIBUTOR IN TRADE FACILITATION AND INFRASTRUCTURE DEVELOPMENT in Mongolia

- H.E. Viktor Vasil'evich Samoilenko,
The Ambassador, Extraordinary and Plenipotentiary
Russian Federation
as the BEST CONTRIBUTOR IN DEVELOPMENT OF BILATERAL COOPERATION in Mongolia

- Mr. Zhao Qing Mao
Trade attaché,
Embassy of Peoples Republic of China
as the BEST CONTRIBUTOR IN DEVELOPMENT OF BILATERAL COOPERATION in Mongolia

- H.E.Mr. Chung IL
The Ambassador, Extraordinary and Plenipotentiary
Republic of Korea
as the BEST CONTRIBUTOR IN DEVELOPMENT OF BILATERAL COOPERATION in Mongolia

- MR.THIJS VAN PRAAG,
CEO, PUM
as the BEST CONTRIBUTOR IN DEVELOPMENT OF SMEs in Mongolia

Link to release

 

NSO: Social and economic situation of Mongolia (As of January 2012)

February 10 (NSO) --

I. Social indicators

In January 2012, 6015 mothers delivered 6033 children (live births) increased by 852 mothers or 16.5 percent, and 843 children or 16.2 percent, compared to same period of the previous year.

In January 2012, at national level infant mortality increased by 11 or 11.7 percent to 105, and child mortality aged 1-5 increased by 5 or 31.3 percent to 21 compared to same period of the previous year.

The number of unemployed reached 58.2 thousand at the end of January 2012, reflecting an increase of 19.8 thous.persons or 51.7 percent compared to same period of the previous year.

In January 2012, 115.6 thous.persons were registered as insurer, of which 68.8 thousand or 59.5 percent were those from the establishments, and 46.8 thousand or 40.5 percent from the government budgetary organization.

In January 2012, social welfare pensions and benefits allocated to 53.7 thous.persons, showing an increase of 2.5 thous.persons or 4.8 percent, total amount of the allocated fund increased by 131.9 mln. tog or 4.8 percent compared to same period of the previous year.

In January 2012, 32.9 bln.tog were distributed to 2.6 mln.persons (double counting) from the Human development fund...

In January 2012, the number of infectious disease cases was 3815 persons, increase by 765 cases or 25.1 percent compared to same period of the previous year. The increase in the number of infectious disease cases was mainly due to the increases of 102 persons or 39.4 percent in syphilis, 69 persons or 24.9 percent in trichomoniasis, 69 persons or 24.8 percent in varicella, 34 persons or 12.6 percent in tuberculosis, 39 persons or 10.6 percent in gonococcal infection, 3 persons or 2.7 percent in shigellosis, 101 persons or 7.8 percent in viral hepatitis...

At national level, 2265 crimes were registered in January 2012, reflecting an increase of 413 crimes or 22.3 percent compared to same period of the previous year. The increase in the number of crimes was mainly due to the increases in crime against the right of ownership (255), crime against human life and health (or physical well-being) (110), crime against the rules of safety of traffic and use of motor vehicles (20) compared to same period of the previous year.

In January 2012, occurred crimes caused 707 injuries and 199 deaths. The number of injuries up by 61 persons or 9.4 percent and the number of deaths up by 20 persons or 11.2 percent compared to same period of the previous year.

II. Macroeconomic indicators

In 2011 GDP reached 10829.7 bln.tog at current price, increased by 19.8 percent in the first quarter of 2011, increased by 29.4 percent in the first half of 2011, increased by 31.7 percent in the first 3 quarters, increased by 28.7 percent by preliminary estimates compared to same period of the previous year.

Comparing same period of the previous year , GDP reached 4881.4 bln. tog at 2005 constant price the by preliminary estimates and increased by 9.8 percent in the first quarter of 2011, increased by 14.0 percent in the first half of 2011, increased by 16.5 percent in the first 3 quarters of 2011, increased by 17.3 percent in 2011.

The national consumer price index in January 2012, increased by 2.8 percent compared to the previous month, and 10.2 percent compared to same period of the previous year. The increase in national index compared to the previous month was mainly due to 4.9 percent increase in food and non-alcoholic beverages and 5.3 percent increase in transport.

According to the report of the Bank of Mongolia, money supply (broad money or M2) at the end of January 2012, reached to 6150.1 bln.tog, decreased by of 262.1 bln. tog or 4.1 percent compared to the previous month, and increased by 1344.7 bln.tog or 28.0 percent compared to same period of the previous year.

At the end of January 2012, currency issued in circulation reached 657.0 bln.tog, decreased by 56.4 bln.tog or 7.9 percent compared to the previous month, and increased by 91.3 bln.tog or 16.1 percent compared to same period of the previous year.

Loans outstanding at the end of January 2012, amounted to 5649.0 bln.tog, up by 7.8 bln.tog or 0.1 percent compared to the previous month, and up by 2208.7 bln.tog or 64.2 percent compared to same period of the previous year.

Principals in arrears at the end of January 2012 reached 73.8 bln.tog increased by 0.1 bln.tog or 0.1 percent compared to the previous month, decreased by 29.2 bln.tog or 28.3 percent compared to same period of the previous year.

At the end of January 2012, the non-performing loans over the bank system reached 328.0 bln.tog, showing decreases of 2.0 bln.tog or 0.6 percent compared to the previous month, of 33.5 bln.tog or 9.3 percent compared to same period of the previous year.

In January 2012, there were 22 trading days and 4.8 mln.shares valued at 4.7 bln. tog were traded.

In January 2012, total revenue and grants of the General Government Budget amounted to 325.8 bln.tog and total expenditure and net lending amounted to 260.0 bln.tog, representing surplus of 65.8 bln.tog in the equilibrated balance of General Government Budget.

In January 2012, current revenue of the General Government Budget amounted to 324.3 bln.tog and current expenditure reached 257.2 bln.tog. Thus, the budget equilibrated current balance was in surplus of 67.2 bln.tog.

Compared to same period of the previous year, tax revenue increased by 93.2 bln.tog or 46.3 percent. The increase was mainly due to the increases of 51.8 bln. tog or 3.8 times in taxes on foreign trade, 45.1 bln.tog or 3.2 times in other taxes, 17.1 bln.tog or 72.8 percent in social security contribution, 6.5 bln.tog or 50.5 percent in personal income tax, 3.9 bln.tog or 17.5 percent in corporate income tax, although there was decreases of 18.7 bln.tog or 20.7 percent in taxes on goods and services.

Compared to same period of the previous year, non-tax revenue increased by 15.3 bln.tog or 2.0 times. The increase was mainly due to the increases of 8.5 bln.tog or 2.1 times in revenues from budget entities, 6.2 bln.tog or 5.4 times in revenues from others, 3.2 bln.tog or 3.0 times in revenues from interest and fines and 0.2 bln.tog or 606.5 times in revenues from dividends although there was decreases of 2.2 bln. tog in revenues from navigation fee and 0.6 bln.tog or 43.1 percent in revenues from oil petroleum.

In January 2012, total expenditure and net lending of the General Government Budget increased by 13.5 bln.tog or 5.5 percent to 260.0 bln.tog compared to same period of the previous year. This was mainly due to increases of 19.3 bln.tog or 15.5 percent in subsidies and transfers, 8.3 bln. tog or 8.8 percent in expenditure of goods and services and 1.5 bln.tog or 15.3 percent in interest payment although there was decreases of 9.5 bln.tog in lending minus repayments and 6.1 bln.tog or 45.8 percent in capital expenditure.

In January 2012, spending of 7.3 bln. tog on capital expenditure decreased by 6.1 bln.tog or 45.8 percent compared to same period of the previous year. Of which 5.0 bln. tog were foreign financed capital expenditure and 2.3 bln.tog were capital expenditure of domestic sources.

In January 2012, Mongolia traded with 94 countries from all over the world and total external trade turnover reached 735.2 mln. US dollars, of which exports made up 240.3 mln.US dollars and imports made up 494.9 mln.US dollars.

External trade balance showed a deficit of 254.6 mln.US dollars in January 2012, while it was in deficit of 139.6 mln.US dollars in January 2011. Compared to same period of the previous year, deficit increased by 115.0 mln.US dollars or 82.4 percent

Total external trade turnover increased by 178.4 mln.US dollars or 32.0 percent, of which imports up by 146.7 mln.US dollars or 42.1 percent, and exports up by 31.7 mln.US dollars or 15.2 percent respectively, compared to same period of the previous year.

Mineral products, natural or cultured stones, precious metal, jewelry, coins, raw & processed hides, skins, fur & articles, animal origin products, auto, air & water transport vehicles & their spare parts thereof accounted for 97.1 percent of the total export value amount.

III. Economic sector indicators

In January 2012, at national level natural losses of adult animals down by 41.7 thous.heads or 64.6 percent to 22.8 thous.heads compared to same period of the previous year. Out of the losses of adult animals, 1.5 thousand were horses, 2.2 thousand were cows, 49 were camels, 9.2 thousand were sheeps and 9.8 thousand were goats.

In January 2012, the total industrial output increased by 8.3 bln.tog or 5.7 percent to 154.8 bln.tog (at 2005 constant prices) compared to same period of the previous year. The increase in the industrial output was mainly due to 2.6-74.2 percent, increases in mining and quarrying products such as copper, with concentrate, Fluor spar concentrate, molybdenum concentrate and crude oil and 5.0 percent to 10.8 times increases in industrial main products of manufacturing sector such as bakery products, carpet, beer, lime, bread, soft drinks, electric wire, combed down, juice, metal sleeper, macaroni noodles, plastering mortar, concrete mortar, cement, meat and briquette.

In January 2012, 1733.8 thous.t freight and 293.7 thous.passengers (double counting) were carried by railway transport. Compared to same period of the previous year, the number of carried freight rose by 388.7 thous.t or 28.9 percent and the number of carried passengers rose by 0.7 thous. persons or 0.3 percent. Due to the increase in carried freight and passengers, revenue from railway transport increased by 8.0 bln.tog 31.9 percent to 32.9 bln.tog in January 2012, compared to same period of the previous year.

In January 2012, 302.3 t freight and 46.2 thous.passengers (double counting) were carried by air transport. Compared to same period of the previous year, the number of carried freight increased by 173.7 t or 2.3 times, the number of carried passengers rose by 9.7 thous.persons or 26.5 percent. Due to the increase in carried freight and passengers, revenue from air transport increased by 2.5 bln.tog or 28.2 percent to 11.6 bln.tog in January 2012, compared to same period of the previous year.

According to the report of the Institute of Meteorology and Hydrology, maximum precipitation was registered in Bayantes soum (3.8 mm) of Zavkhan aimag in January 2012. In January 2012, Bayantsagaan soum of Bayankhongor aimag had the highest air temperature (0.0°C), while Tosontsengel and Otgon soums of Zavkhan aimag had the lowest air temperature (-50.0°C). Wind speed reached 20 m/sec in Bulgan soum of Umnugovi aimag.

Daily average concentration of nitrogen dioxide exceeded 31 times around Kharkhorin market of Ulaanbaatar city, 26 times around the 13th micro district and the Offitseruudiin ordon respectively, 22 times around the 32nd Toirog and 20 times around the 1st micro district, daily average concentration of sulphur dioxide exceeded 31 times around Kharkhorin market, 27 times around the 32nd Toirog and the Offitseruudiin ordon respectively, 25 times around the West crossroad, 22 times around the 13th micro district, 20 times around the 1st micro district and 9 times around the Misheel-Expo center, particulate matter less than 10 micrograms exceeded 30 times around Kharkhorin market, 23 times around the 32nd Toirog, 20 times around the 13th micro district and 19 times around the West crossroad, particulate matter less than 2.5 micrograms exceeded 21 times around the West crossroad, carbon dioxide exceeded 3 times around the 32nd Toirog from the maximum allowable concentration of air quality standard in January 2012.

In January 2012, 343 disasters and accidents occurred. As a result, 13 people died, 0.4 thous.livestock and domestic animals had lost. By the types of disasters, 328 fires on possessions, 3 accidents related to artisanal mining and rock falls, 2 river and lake accidents, 1 case of domestic animal madness disease occurred in January 2012. In January 2012, estimated damage caused by the disasters and accidents amounted to 0.8 bln.tog.

Link to report

 

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"Mogi" Munkhdul Badral

Senior Client Manager / Executive Director

CPS International LLC

Telephone/Fax: +976-11-321326

Mobile: +976-99996779

Email: mogi@cpsinternational.mn

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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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