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Wednesday, February 8, 2012

[CPSI NewsWire: Government to Work with MCS, MAK, Petrovis, MIC on Coal to Liquid Project Research]

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.

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See Mongolia related quotes at bottom of newsletter

 

Goldman trims Mongol Mining target to HK$7.3

February 2 (ET Net) Goldman Sachs trimmed its target price for Mongolian Mining (MMC)(00975) to HK$7.3 from HK$7.5, and maintained its "buy" rating

It said Mongolia's leading position in supplying China coking coal strengthened with 48% market share in January-November 2011 versus Australia's 25%. 

The research house sees further upside for Mongolia coking coal exports to China as Mongolia ramps up infrastructure for coal transportation. 

With a high-quality HCC mine, 15mtpa washing capacity in 2012, and a mandate to build the UHG-GS railway, MMC is best-positioned to benefit from the scaling-up of Mongolia coking coal exports thanks to its ownership of the supply chain, Goldman noted.

Link to article

 

AKM closed -2.3% to A$0.425

Bell Potter: Aspire Mining Ltd (AKM) – Speculative Buy, Target Price A$1.10

January 20, Aspire Mining Limited (ASX:AKM) --

PFS on track for March quarter release

More coking coal, PFS on track, 2012 program outlined

AKM has released an update detailing the progress on the Ovoot project and a work program for 2012. The release also confirms coking  coal intersections at the new discovery area to the north east of the existing Ovoot resource. Having completed infill drilling, AKM is on track to release the Ovoot Project prefeasibility study, an updated resource and initial reserve in the March 2012 quarter. The exploration program for 2012 includes a further 16,500m of drilling. We maintain our Buy (Speculative) recommendation and $1.10/sh target price.

Preliminary tests show coking coal at new Ovoot discovery

Initial coal quality analysis has identified mid-volatile coking coal at the new discovery area around five kilometres to the north east of the existing Ovoot resource. Spot samples (8) have had crucible swelling numbers of 7-9, low moisture (<1%) and high energy content, consistent with the high quality Ovoot coking coal resource. Some localised areas of high sulphur were identified. However, these are generally positive preliminary results and support further exploration drilling.

PFS for 15Mtpa mine to be released in March 2012 quarter

Having completed infill drilling at Ovoot, AKM now expect to finalise the PFS for a 15Mtpa ROM (12Mtpa premium coking coal product) operation. In 2011, AKM drilled 74 holes for 17,700m at Ovoot (infill and exploration). In 2012, AKM expect to complete a further 16,500m, targeting the new discovery area, and the Hurimt and Zuun Del prospects. To date, AKM has drilled only 20% of the Ovoot Basin.

Investment view – Buy (Speculative) 

Our AKM NPV is $1.11/sh (13% discount rate) at long term coking coal process of US$180/t and currency of US$0.85/A$. AKM's 100% owned Ovoot coking coal project has strategic appeal to potential offtake customers, as evidenced by the recent announcement of an alliance agreement with Noble Group (8.3% AKM shareholder). AKM is a speculative investment as it carries significant infrastructure risks.

Link to report

 

GUF closed +3.03% to A$0.85

Foster Stockbroking: Guildford Coal Ltd – BUY, Target Price A$2.20, 160% Upside

February 6 – Guildford Coal Limited (ASX:GUF) --

Guildford Coal Ltd (GUF.ASX)

On track for first production mid 2012 in Mongolia

Event:

·         Quarterly update

·         Mining licence approved – South Gobi and JORC upgrade.

Investment Thesis:

·         Moving to producer status in 2012: GUF in its short period since listing is well on its way to producer status after the granting of a mining licence in South Gobi. GUF will now move towards completion of a scoping study with the expectation of a mining contractor being selected and securing an offtake partner by the end of 1QCY12. Management have initially flagged that mining will commence by the end of first half CY2012 targeting 2-4Mtpa.

·         JORC  now achieved on multiple projects: Over the last three months, GUF has delivered a JORC Resource on multiple projects including  South Gobi (70.4Mt), Hughenden (1.036Bt) and Middle Gobi (221.4Mt). GUF will now move to define an open pit resource from its White Mountain project by end of Q1 CY12.

·         South Gobi alone underwrites GUF's Market Cap:  Our  valuation on South Gobi ~$450m or $1.02/Sh, underwrites GUF's current Market Cap and we expect the stock should re-rate upon favourable scoping study results including the selection of an offtake partner and mining contractor as well as the commencement of mining in the 2QCY12.  Separately, our valuation for Hughenden is equivalent to $1.33/sh derived using EV/Resource multiple of $0.30/t using an existing JORC of 1.036Bt and additional exploration upside of ~1Bt.

·         Infrastructure advantage in the Galilee:  GUF has a significant advantage in the Galilee with potential access to market via an existing rail and port corridor. Management has existing MoU's in place with ARG and POTL and is moving towards a HoA upon completion of a pre-feasibility study to potentially access the existing rail and port infrastructure (~320km) via the Port of Townsville (POTL).

Catalysts

·         South Gobi Scoping Study results  – (including mining contractor and offtake) 1QCY12.

·         White Mountain open pit JORC Resource 2QCY12.

·         Commencement of mining South Gobi Project 2QCY12.

Recommendation:

·         We maintain our BUY recommendation and revise our price target to A$2.20/sh (previously $1.90/sh), which represents >160% upside to the current share price.

·         The major change in our valuation is driven by a DCF on South Gobi given the recent JORC and granting of a mining licence and the recognition of corporate success fee at Hughenden.

·         Our PT for Hughenden is derived using EV/Resource metrics using an existing JORC of 1.036Bt and additional exploration upside of ~1Bt (equivalent to 30% of independent geologists target).

·         Catalysts for the stock over the next 12mths include  commencement of a prefeasibility study on the Hughenden project as well as production in Mongolia and corporate appeal for a major looking to secure longer term supply.

Link to report

 

Patersons: Guildford Coal Ltd – BUY, Target Price A$1.95, 137.9% Upside

February 7 – Guildford Coal Limited (ASX:GUF) --

Mongolia - first mining license granted

Investment highlights

·         Guildford Coal (GUF) achieved a key milestone with the granting of the first Mining Licence for the South Gobi Coal Project.  Scoping studies are expected to be completed Q3FY2012 with a 2Mtpa Case and a 4Mtpa Case being developed. We believe that the 4Mtpa case is more likely as additional resources are developed and additional Mining Licenses are granted.  We retain our BUY recommendation with a revised price target of $1.95/share.

·         More resource - A review of the South Gobi Project North Pit data has upgraded the JORC compliant resource to 70.4Mt consisting of 39.7Mt of Indicated and 30.7Mt of Inferred Resource.  The  raw quality for the resource varies from east to west. Coal in the east is similar to semi soft coking coal (classified as Coking Coal under the Chinese system) in the west the coal has marginally higher ash and volatile matter, lower fixed carbon and energy (classified as 1/3 Coking Coal under the Chinese system).

·         Next Steps - It is anticipated that a mining contractor will be engaged with production expected to commence in the second half of 2012. An off-take agreement for ROM coal sold mine gate should be finalised in the same time period. Further drilling will focus on proving JORC compliant resources on the conceptual West Pit, conceptual Central Pit and conceptual East Pit Q4FY2012.

·         Corporate actions – GUF bolstered its cash position with a $10M placement to Regal Capital and it has paid bonuses issued to management and the board in script. The resulting dilution has been the main impact on our price target revision. 

·         The White Mountain Project - drilling has continued over the wet season and a second hole intersected coal seams similar to the first hole at depths of 220m. The interpreted thicknesses of the holes are 12.5m and 13.4m of net coal across 3 main seams.  These are still deep and future drilling will follow these seams up-dip. If successful it is likely the White Mountain project will supply the first production from the Hughenden tenements. 

Link to report

 

Release made before market open, 61 closed flat at

NAR: ALTERATION OF THE TERMS OF THE US$30M CONVERTIBLE BONDS AND SPECIFIC MANDATE FOR THE ADDITIONAL CONVERSION SHARES

February 8, North Asia Resources Holdings Limited (HK:61) --

Link to release

 

India Globalization Capital (IGC) Increases Iron Ore Production Capacity (and ship iron ore from India or Mongolia to it's plants in China)

Purchases Mine With Over $225 Million in Estimated Ore Reserves; Increases Production Capacity by 50%; ROI Projected to Be Between 35-45%

BETHESDA, MD--(Marketwire - Feb 7, 2012) - India Globalization Capital, Inc. (NYSE Amex:IGC), a company competing in the burgeoning Indian and Chinese materials and infrastructure industries, announced today that it has expanded its production capacity by 50% and added 1.8 million tons of iron ore to its reserves.

Mukunda, IGC's CEO, commented, "We are pleased to report that we have purchased mining land adjacent to our present facilities in Linxi, China. Based on the current pricing of $127 per ton, this plot's estimated reserves of 1.8 million tons of 66 percent grade iron ore are valued at over $225 million. This acquisition raises our combined estimated reserves -- including those on our existing property in Linxi and our rock aggregate reserves in India -- to over $590 million."

The Company is also building an additional beneficiation plant on the recently acquired property. The new, technologically advanced facility integrates the dry and wet separators into one continuous process, dramatically reducing wastage and increasing efficiency by 20% over the existing facility. The plant being constructed is projected to come on line by the end of March 2012.

Mukunda added: "We have added photographs of the new plant on our website at www.hfironman.net. The expansion of capacity during the slow winter months sets us up very well for a profitable fiscal year starting April 1, 2012. The new beneficiation plant is projected to increase our production capacity by 50%. The total capital expenditure, for the new mining land and new plant, of about $5.0 million, was funded entirely from existing funds. We expect an unlevered ROI in the range of 35-45% per year, beginning almost immediately."

Both plants extract high-grade iron ore from low-grade ore through dry and wet separation processes. In addition to processing the raw material located on our property, our strategy will be to ship low-grade iron ore from India or nearby Mongolia to the two plants in Linxi for beneficiation and sale to customers in China. On January 25, 2012 Atlas Iron, Australia's No. 4 iron miner, said that demand from China remains strong and at the right price and is expected to pick up after Chinese New Year. We believe that our strategy of processing ore in China, close to our customers, will uniquely position us in the market.

Link to release

 

GOV'T TO COOPERATE WITH ENTERPRISERS IN PRODUCING LIQUID FUELS

Ulaanbaatar, Mongolia, February 7 /MONTSAME/ A memorandum was established on Monday between the National Development and Innovation Committee and the Ministry of Mineral Resources and Energy (Government) and a group of enterprisers such as  "Mongolian Industrial Corporation" LLC, "MCS", "MAC" and "Petrovis" Groups.

The sides intend to cooperate in studying opportunities to produce a liquid fuel from coal. They will ensure an implementation of a resolution on approving the program on industrial development and a 320th resolution on approving the list of the biggest projects, and will cooperate in exchanging views on supporting the domestic investors. They will also share views on erecting of industrial complexes of liquid fuels and on drawing up technical and economic justifications, environmental evaluation and calculations.

The memorandum requires them to unite research works done by professional organizations into erecting a factory of liquid fuels and to seek and study opportunities to realize a joint project.

Link to article

 

Mongolian meat passes international food safety standards

February 7 (UB Post) Just Agro LLC of Just Group has recently become the first Mongolian company to receive the Hazard Analysis and Critical Control Points (HACCP) certificate of international food safety standards. 

To celebrate the occasion, a ceremony was held at the head office of Just Agro on February 3rd. Several State Great Khural members, ministers, international delegates and the head of the Union of Mongolian Production and Service Cooperatives, N. Enkhbold, were present at the ceremony. 

The HACCP certified that meat products of Makh Market, a meat company of Just Agro LLC, are products of an international standard

The HACCP standard was first developed and used in 1970 by the US for food supply of astronauts; later becoming a worldwide recognized the food safety standard in the mid 1980s. 

The Mongolia National Food Safety Program aims to have no less than 60 percent of Mongolian food products pass the HACCP food standards test by 2016. Just Agro LLC, has been congratulated for being years ahead of schedule.

Just Group is a national level company with 560 divisions and branches throughout Mongolia, running businesses in several industries. 

The ceremony opened with a melody from a Morin Khuur, and proceeded with company executives delivering speeches. Afterwards, head of the Mongolian Meat Association, L. Gankhuu awarded the CEO of Just Agro, T. Sodnomdarjaa, the HAACP certificate. 

"This is only the beginning," began CEO T. Sodnomdarjaa. "We have worked for 2 whole years on research and study to have Mongolian meat pass international safety and quality standards. We have spent 50 billion MNT to upgrade our technologies, and purchased 61 billion MNT worth of meat from herders, which we believe was an exceptional assistance for the herding families. We have spent 1 billion MNT to train our employees to work at world standards." 

State Great Khural D. Baldan-Ochir said, "Members of the State Great Khural are expressing their gratefulness to the leading meat producer Makh Market for becoming the first meat producing company to receive the certificate of HACCP." 

"Just Agro has worked to improve its meat market since 2002, and now they have 11 large meat processing and preparing plants in Mongolia, with exports to United Arab Emirates, Russia, China, Korea and Iran. After the ceremony, we went to be introduced to the meat processing plants. Receivers from the company were waiting for us at the entrance and they provided us with special suits and equipment before entering the building." 

"The receivers were not there because of arriving Government officials, they are always there for anyone who enters the plant, to make sure it is free of infection and to keep an excellent level of hygiene. We saw meat packers in large, clean glass walled rooms. The meat was thoroughly cleaned and disinfected to high standards." 

"After watching the operations at the plant, I felt it was undoubtably safe to continue using their meat products."

Link to article

 

Draft law would limit rights of some to run for Parliament

February 8 (news.mn) MP Kh.Battulga has prepared a draft law that would limit the rights of producers of alcohol and tobacco products to be candidates in parliamentary elections.

The draft has already been rejected for discussion by standing committees, so Kh.Battulga is asking MPs directly to consider the proposal.

Only ten MPs have signaled their support so far. MPs R.Amarjargal, B.Bat-Erdene, G.Bayarsaikhan, Ts.Bayartsaikhan, D.Gankhuyag, S.Lambaa, Ts.Sedvaanchig, O.Chuluunbat, Z.Enkhbold, and S.Erdene have become co-sponsors of the draft. 

If the draft were to pass, supporters say it would not take effect until the 2016 parliamentary election.

Link to article

 

N. Luvsanjav talks Law of Election implementation

February 7 (UB Post) Chairman of the General Committee of Election (GCE) N. Luvsanjav, and Secretary General Ch. Sodnomtseren spoke about election management and preparation on February 6. 
The State Great Khural prepared legislation regarding the election and the GCE is handling implementation of the law. 

The GCE emphasized that the election of 2012 has a number of both challenges and exciting developments. 

Votes will have to be collected and accurately counted from Mongolians living abroad, and civil servants or service workers, not party representatives as in the past, will work at polling stations. Automatic voting machines will also be used for the first time. 

Numerous citizens and organizations have logged complaints saying that the Law of Election is confusing. The GCE requested that the Supreme Court review and make the necessary changes to the areas of concern. 

Here is the interview with N. Luvsanjav.

-The GCE is working with the Supreme Court to resolve issues with the law. Which clauses were not understandable or seemed to have double meanings?

-We sent about 40 clauses to be reviewed. For example, the voting time was to run from 07.00 – 20.00, but Mongolia has a wide territory and there are time differences. How could we address the time difference? The clause prohibiting candidates drawing the attention of voters needs to be reviewed as well. 

-The law to hold both State and province elections on the same day is still being discussed. But, there are opponents of the proposals from other parties of the State Great Khural. Is it possible that the elections will be held on the same day? 

-There are many views. Some think that having the elections take place on one day is possible because we are going to use automatic voting machines. But before this, we all need to have the same understanding of the law. 

The GCE is warning people of one thing; candidates' names become set for good 20 days before election. We publish these names on every voting sheet differently. We published over 26 types of ballots during the election of the State Great Khural. If the State Great Khural and province elections take place on the same day, we will need to publish about 300 – 400 ballots and program the voting machines. The U.S. based company, which produces the voting machines, says to programing 300 – 400 ballots is possible, but it would take a long time. 

-Actions to draw attention or votes are prohibited by law. But, there are complaints that there are hidden advertisements being used. Could the GCE possibly monitor this completely? 

-The GCE could not possibly monitor all of this. We don't' have the manpower to monitor every candidate. So the political parties, non-governmental organizations, press and public must monitor jointly with us. 

-Have the first voting machines arrived? There worry that changing the programming could tamper with results.

-There aren't any misunderstandings with the technique or undependable technology being used. The first five machines have arrived. We will receive the other machines in stages beginning on May 10. In total, we will receive the 2500 machines, which cost USD 3200 per machine.

Link to article

 

World Class Job Board Launching in Mongolia!

February 7 (Angel News) A real first in the Mongolian Recruitment Market!

Today the www.MongoliaTalentNetwork.com website has gone live. This includes a fully searchable, international standard, job board.  The English version of the site is live now and the Mongolian version will be available from next week.

If you chose to list your jobs with us you will benefit from the traffic we'll be driving through all of our marketing activity, including the largest recruitment focused LinkedIn group in Mongolia and a quickly growing Facebook page.   And, for the first month, you can enjoy an introductory offer of free listings!

If you're a candidate who is interested in exploring your options, you'll be able to see all the jobs that Mongolia Talent Network are working on as well as those of other companies in the Mongolian market.  This is a great 'go to' to understand your options!   If you want to benefit from our advice and guidance please don't hesitate to contact us directly.

Link to article

 

Air Astana launching Astana-Ulaanbaatar flights Q2 2012

February 7 (ASIATravelTips.com) Kazakhstan's Air Astana will be operating its growing fleet of Embraer 190s on an expanded Central Asian network in 2012.

New international services from Astana to Ulan Bator, capital of Mongolia; Astana to Tashkent, capital of Uzbekistan; Almaty to Kazan, Russia and Atyrau to Moscow will be launched following the delivery of three more aircraft during the second quarter of 2012.

 The first Embraer 190 entered service with Air Astana in April 2011, with the existing fleet of three aircraft currently operating on international routes to Tbilisi, capital of Georgia; Baku, capital of Azerbaijan; Dushanbe, capital of Tajikistan; Bishkek, capital of Kyrgyzstan; Samara, Russia and nine domestic routes.

"Air Astana's strategic plan to develop a network of services serving destinations in Central Asia, southern Russia and western China from hubs in Almaty and Astana has been a tremendous success over the past three years," said Peter Foster, President of Air Astana. "Popularity of the services has been further boosted following the introduction Embraer 190 aircraft on the network earlier this year and passengers can now look forward more new destinations in 2012."

The twin-engine Embraer 190 jet is configured in a two class, 98 seat configuration and has a maximum range of 4,500km.

Air Astana currently operates a fleet of 26 aircraft comprising two Boeing 767-300, five Boeing 757-200, ten Airbus A321/A320/A319, three Embraer E190 and six Fokker 50. The airline placed an order for four new Boeing 767-300ERs and three Boeing 787-8s earlier this month. The airline serves 23 domestic and 31 international destinations. 

Link to article

 

Steve Barnett (IMF): Mongolian Economy: Key Short-term Challenges and Risks

February 7 (Mongol Bank) --

Overheating. The economy is overheating or, put more simply, is growing too fast. It may sound funny to say an economy is growing too fast, but more is not always better when it comes to growth. Growing too fast in the short run leads to significant problems, such as high inflation, exchange rate volatility, wage pressures, Dutch disease, and the list goes on. These could also heighten fears about "hardlanding" especially if external shocks hit the economy. This macroeconomic instability, in turn, has substantial long run costs that include making it more expensive to do business in Mongolia, discouraging investment, and making Mongolian firms less competitive globally. The inflation, moreover, has a particularly hard impact on the poor. So in sum, the overheating today leads to higher poverty and lower growth in the future. This is a bad tradeoff.

Global risks. The global economy is at a particularly dangerous point, and there is a real risk of a substantial slowdown in world growth similar to what happened in 2008. While the biggest concern is the European Sovereign Debt Crisis, no part of the world would be immune from the fallout. For Mongolia, the biggest implication would be from a significant drop in copper and coal prices, just like 2008, which would hit the economy extremely hard. In fact, Mongolian policymakers are repeating the very same mistakes that led to the 2008-9 economic crisis at the worst possible time. The return of boom-bust policies at this dangerous juncture in the global economy makes the Mongolian economy vulnerable to another crisis. The upcoming elections in Mongolia are another source of uncertainty and could lead to a political accident that triggers an abrupt loss of confidence. Fortunately, the economy is not at that point yet but urgent policy action is needed to put the economy on safer footing. 

Fiscal policy. The main cause of the overheating and economic volatility is fiscal policy. Specifically, the large and risky increases in government spending. Government spending increased 60 percent last year and is set to rise a further 30 percent this year. This is staggering growth and implies a doubling of government spending in just 2 years. This is simply too much demand and leads directly to higher inflation, a substantial increase in imports, exchange rate volatility, and a squeezing-out of the private sector. So first and foremost, what the Mongolian economy needs is for an immediate scaling back of government spending to a much more prudent rate of growth. 

Exchange rate. The flexible exchange rate regime is working and must be maintained. Indeed, the flexible exchange rate is the single most important policy difference between today and the last crisis. Going back to targeting or controlling the exchange rate, as was the case in 2008, would be a big mistake and make conditions even riper for a repeat of the last crisis. Exchange rate volatility is unpleasant, so the public and political concern in this area is understandable. The central bank can continue to intervene to smooth excessive volatility. What it should not do, however, is target a specific level of the exchange rate. It simply does not work, and the main effect is a loss of international reserves. While reserves buffers are much higher than in 2008 and even higher if we factor in the welcome swap line with the People's Bank of China), they are not enough to defend an exchange rate target. While such a policy may seem to work for a short-period, as reserves are run-down the speculative attack would accelerate and the end-result is a large, abrupt, and painful jump in the exchange rate as was seen firsthand in the 2008-9 period. That mistake should not be repeated.

Link to article

 

Mogi: I believe M.A.D.'s Chris puts a little too rosy of a picture of Mongolian real estate sector, and discredits the others too harshly. Doesn't even mention investing in overseas Mongolia focused stocks.

Forget Everything You Think You Know About Mongolia

Chris DeGruben and M.A.D. Investments

February 7 (Capitalist Exploits) I've been wanting to interview my friend Chris DeGruben for the last 6 months.

Truth be told, I've spoken to him quite a few times and just never hit the "record" button – literally and figuratively speaking. That's a shame, because Chris is easily one of the sharpest guys in Mongolia, and definitely someone you need to pay attention to. I should have brought you this sooner.

Chris is a veteran of Mongolia, having first travelled there in 2005. Anyone that can hack out more than a few years in a frontier market is OK in my book. These are tough places…

Having learned from the master, Lee Cashell, Chris has gone on to make quite a mark of his own. Chris and his partner Joachim have participated in over 1,000 RE transactions, and multiplied their own capital 25 times over! Their firm, M.A.D. Investment Solutions has grown into a multi-faceted consultancy. Chris is qualified to comment!

I think you'll really enjoy this no-holds-barred interview with one of Mongolia's true "rising stars."

——-

Mark: Chris, we talk about it a lot, but Mongolia is just coming onto the radar of most investors. The story started many years ago. You were there early. What attracted you to the opportunity?

Chris: My father was a diplomat specialising in the Soviet Union. I thus spent my entire childhood in Soviet economies where I truly saw the transition from centrally-planned economies to market economies.

The transition process always seems to follow the same path, with cars getting bigger and better, shops getting filled with foreign goods, clothes getting more colourful, skirts shorter, etc. The one constant I found in all those transition economies was that soon enough property would be privatised, which was then followed by an enormous boom in the real estate market for a period of 10 to 20 years. This would go on until it reached what I would call "normal" market conditions, like those that we find in Europe and in other developed economies.

We have seen this throughout Eastern Europe as well as all over those CIS countries that have successfully transited their economies to a market economy model. When I first travelled to Mongolia in 2005 this dynamic was just starting. This, coupled along with the incredible story of Mongolia, provided extremely strong fundamentals in which to invest. I knew that while it might take a few years to really develop into a serious market, the opportunities were absolutely worth the wait.

Mark: You know that is something Chris and I talk about a lot on this blog. Investors need to realise that "investing" is somewhat predictable. There are certain patterns that repeat time and time again. Chris recently spoke about front-running liquidity, that's a perfect example.

Chris: That's absolutely true, and it will be true in Mongolia as well.

Mark: You worked for Lee Cashell's APIP in the early days. Lee's had a lot of success, and he's one of the guys we like to chat with regularly. What did you learn from your experience with APIP?

Chris: I learned everything I know today from Lee; he is a true entrepreneur and I loved working with him. He has an incredible understanding of the market, and to this day I very much admire what he has achieved in so little time.

I have also been lucky enough to learn all the pitfalls that exist in operating in such a dynamic market as Mongolia, and this has allowed me to develop the strategy of M.A.D. into something that is more flexible, with few conflicts of interest. We allow investors to operate with transparency, and develop tailor-made strategies that are based on solid fundamentals.

Mark: We've had a lot of discussions about your business activities and the services you offer at M.A.D. With the background you developed on the ground in Mongolia, and your real-world experience as your foundation, what areas are you focusing on and why?

Chris: I am always on the look-out for the best possible opportunities for investment, and Mongolia truly is a place where anything and everything is possible. I am lucky enough to operate in a market where opportunities of all kinds exist.

Unlike more mature markets which have extremely high barriers to entry, Mongolia is a country with an incredible ease of doing business. It is a country which brings together a lot of of the ingredients needed to make it one of the most attractive in the world for investors right now.

Of course Mongolia is still an emerging, frontier economy, and this brings with it its own series of issues and problems. For instance, solid and formal due diligence is extremely hard to achieve, as so much of the economy is informal, and deals are made through connections and contacts "below board" rather than "above board."

Another enormous issue that still faces the country is the lack of scalability in its investments. While opportunities abound, they require small ticket sizes of between US$ 100k to US$ 1 million, this puts off the vast majority of institutional investors looking for US $30M plus ticket sizes.

There are three areas where we see the majority of foreign investments going into: Mining and the mining supply chain; the Mongolian Stock Exchange; and, real estate. I have looked closely at all three of those sectors, and only real estate makes sense for an investor such as myself. Let me explore this a little further.

The mining and mining supply chain sectors are certainly very interesting, and the entire growth in the Mongolian Economy is based on this sector, but I don't know the first thing about mining. To be fair, it is a sector where there is enormous amounts of corruption on the ground. It is a sector dominated by the big boys with large cheque books (Rio Tinto, Ivanhoe, Leighton etc…) who are able to make the most of those opportunities. Small investors such as myself will have absolutely no impact, and we are left with the crumbs that no one else wanted.

Beyond that, mining and the mining supply chain is the playground of the political class, a group I would rather not mix it up with. Even if you look past the fact that there is no due diligence, that all the good plays are being taken up by people with deeper pockets than myself, it is clear by being on the ground that the mining sector is extremely volatile. The politicians in search of votes (we have a new election in June) always find populist votes easy to get by making public declarations of nationalising mining assets, cancelling licenses or levying additional taxes on the mining industry.

The world is focused on the mining industry in Mongolia, and I don't have the resources to have a target painted on my back at all times. Mining is too capital intensive, it is a market in which you have a lot of country risk and no direct influence on returns. It's too risky for me and for my investors.

The Mongolian Stock Exchange saw enormous growth over the last year, but has stagnated over the last few months. Again, an interesting play, I have accounts there and so do most of our investors, but we recommend it as an additional strategy in addition to real estate, not instead of it.

The reasons for this are as follows: There is a certain lack of liquidity, with a total market cap of less than US $1.5B and a daily traded value of about US $50k, it is hard to put any money into play without impacting the markets. It's even harder to make a timely exit if you need to.

It is a place where I can and want to invest funds, but with so few stocks being traded actively beyond the top 10, it is nothing more than a waiting game where I have absolutely no added value as an investor, nor any way to differentiate myself from other investors.

We use Rescap (Eric Zurrin's firm) as our brokers for my own accounts as well as those of our clients, and hope that with the involvement of the LSE, and the growth in the Mongolian economy we will see a strong push in the summer of 2012, but we are not holding our breath too much in case it continues to stagnate.

Another thing to bear in mind is that practically none of the listed companies on the MSE pay dividends. So, this is a pure capital growth speculation. We see our investment in the MSE following this path: Invest in stocks by closing your eyes and throwing a dart (the financials of all the companies listed are a pure work of fiction, in my opinion), pray that the markets mature enough over the coming years so that other investors come in to buy your positions (instead of listing or investing in Mongolian assets on other exchanges), and hope that the management of the companies you invest in are not all certifiably insane.

Even then you have to rely on your broker to generate sufficient liquidity to allow you to exit from your positions whenever the time has come to do so, in a matter of days, and not months.

This leaves me with Real Estate, our chosen field of expertise. Real Estate ticks all the boxes for us, it is a market with no, or very little, government involvement. This cuts out corruption (if there is no need for licensing or special government permits, we don't rely on a mindless bureaucratic drone in search of a little envelope to carry out our business), it has no restrictions (apart from land) on foreign investments, ownership or repatriation of capital, it shows strong growth over the past few years and will continue appreciating over the coming years.

It is a market where our investors have great liquidity and can easily add value to their investments by renovating, renting, etc.

It is also important that our investors retain a certain independence with regards to their agents or brokers on the ground. All our investors own their assets outright, which means that should they wish to move the management of those assets to another agency they are free to do so at any time. This forces us to remain competitive and offer as good a level of service as possible. This is actually important to me, as it prevents us from becoming complacent.

I will go into further detail about real estate in a second, but essentially we are in a situation today where we have strong growth in demand from the expats, increasing numbers of high net worth Mongolians, foreign institutional investors and (mostly) the emerging Mongolian middle class.

Mark: That's a great point Chris, the demand is diverse and spread across several groups, it's not just speculation.

Chris: Exactly. Meanwhile we have dwindling supply due to the high cost of land (due to the lack of infrastructure development) the lack of talented construction workers, the lack of financing, the short duration of the summer construction months and the increasing difficulty of getting construction supplies into the country. This presents us with incredible opportunities to invest in undervalued assets with enormous growth potential.

We have come up with some very strong investment principles for real estate in Mongolia, and by following them we are fairly certain of being able to achieve above market returns. There are of course a number of risks associated with investing in the RE markets in Mongolia, but the balance is very much on the "pros" side, instead of the "cons" and makes the investment worth the risk, in particular when compared to other global markets where real estate seems to be in free-fall.

Mark: OK, you like Mongolian real estate, that's obvious. Real estate moves fast and furious in the beginning and most investors miss the initial bump. Where are we at in the cycle?

Chris: Real Estate in Mongolia is indeed an enormously dynamic market, which seems to change overnight. There is strong growth in nearly every sector with some sectors already heading towards an oversupply situation. You've got to remember that UB is a tiny, tiny, tiny market with excellent opportunities, but where it is also very easy to reach an oversupply situation before we even think about it.

A single building can completely change the markets, and the city is so filled with rumours that it is often hard to know what to believe in. Having said this, there are still strong opportunities available. I bought my first apartment in UB for US$ 26,000, today it is worth about US$ 140,000, and I am achieving a rental yield (based on my initial purchase price, of over 100%).

While it may seem to some investors that today's prices are already relatively high, I believe that we are still very far from a peak. Today we are seeing an average capital growth of about 20% per annum, and a net rental yield of about 10%. This is not bad at all when compared to other markets. I think that we still have 3 years of solid growth, as the fundamentals are still excellent. Let me explore what those fundamentals are a little bit.

Mark: Absolutely, let's dig into that a bit.

Chris: First is the strong GDP growth that will continue over the coming years.

It is no great secret that Mongolia is now one of the fastest growing economies in the world, and this trend will continue over the coming years regardless of the global situation. This is because the growth in Mongolia is spurred by already committed levels of foreign investments, such as the US$ 7 billion needed for the development of OT, and the US$ 5 billion expected for the Tavan Tolgoi deposit.

Remember that the GDP of Mongolia is only US$ 5 to 7 billion per year. This is in addition to the growth of the supply chain that will happen regardless of a global crisis, as mining activities are long-term investments and account for cyclical movements in world economies.

Next, Mongolia has a young, urban demographic.

Something like 60% of the Mongolian population is under the age of 26. On top of that, Mongolia still has a very highly educated and literate population with a strong ability to learn foreign languages. This will lead to two things: 1) A baby boom in the coming years, exponentially increasing the size of the population from 3 million to nearly 4 million within 7 years (and therefore the size of the market); and, 2) a population with an increasing disposable income that seeks in the first instance to purchase their own homes, and will eventually be looking towards investing in real estate as a product. This will start a "buy to let" frenzy, as has been seen in other similar markets.

We have already seen a strong impact on the demand side of the market, with a switch from multi-generational households (with grandparents, parents, siblings, kids and grand kids) all living in a single 2 bed or 1 bed apartment, to a more nuclear (parents and kids only) type of family housing. This growth will of course be dependent on the growth of a mortgage market over the coming years, something that will signal the real start of an active real estate market for the population as a whole, making real estate investments accessible to a much wider section of the population.

Mark: That's important to point out. This boom is cash-driven, there are really no mortgages to speak of in Mongolia.

Chris: Right, not yet, at least not in the sense that we're used to in the West.

The next point is that Mongolia is restricted in its infrastructure development.

Ulaanbaatar was built for 300,000 people by the Soviets. Today its ailing infrastructure is supporting 1.2 million people. Infrastructure is crumbling across the city and the government is doing no where near enough, not only to expand the infrastructure network (sewers, water, electricity, roads etc…), but it is not maintaining what currently exists.

This means that land outside of the current city infrastructure limits is essentially worthless. This in turn is driving up prices of land within the city limits and also the cost of construction. As long as we invest in the city centre or areas connected to infrastructure, demand on those areas will continue increasing exponentially.

Despite Ulaanbaatar being surrounded by thousands of miles of steppes, it is essentially an island like Hong Kong, and should be thought of as such. If you want to build on water (in UB's case on land with no access to infrastructure) fine, but the costs of doing so will be a multiple of building within city limits.

Then there are really low taxes and no restrictions.

With no capital growth tax, no stamp duty and only 2% income tax, Mongolia is essentially a tax heaven when it comes to Real Estate investments. Further to that, there is no restrictions on foreign ownership of real estate assets nationally (apart from land), this is unique in Asia, and a big growth factor as it allows foreign entities to invest without penalties in such a strong market.

Like I said a moment ago, Mongolia is still mostly cash purchases, with very little of the market mortgaged. With only 9% of the Real Estate market as a whole currently mortgaged, we still have a long way to go before we enter any sort of bubble territory.

This is possibly one of the strongest fundamentals that we are seeing in the market today, the math is simple: 1.2 million people in the capital, of which 700,000 live in the ger district, but are keen to upgrade their lifestyle (from outdoor toilet – painful when it is -40 outside – to indoor toilets and running hot water), and the remaining population are all crammed into barely 116,000 residential units, few of which are of good quality. Look at this alongside a national residential supply of barely 8,000 units a year, of which only 2 to 3 thousand are actually decent quality, and located within the city centre limits. This is nothing, and it will be pushing capital growth for years to come.

All of this to say that while we have seen amazing growth in the market over the past 5 years, bear in mind we started from absolute ZERO, and are now reaching a slightly more mature and normal market. It is still filled with opportunities in the right sectors.

A lot of the major risks that investors such as myself had in the early days are today gone, with enormous opportunities left for new investors. I think that we will see 3 to 5 years of strong growth pushed by the dynamics described above, with a potential for the markets to peak in 7 or so years and then stabilise at that point. So, overall it's a great time to enter the markets.

——-

Mark again. We'll leave it there for today, that's a lot to digest. Tomorrow we'll run the rest of the interview.

Here's a side not for our readers… Up until this point we've been posting twice per week. The good news is that we're growing quickly, and there are so many fantastic opportunities in frontier markets that Chris and I are having to step it up a bit. That doesn't bother us, we're up for the task.

Going forward look for more posts and more actionable information, 3 or more times per week.

If you like what we're doing here please share it with a few of your friends. And, as always, please feel free to send us questions or leave comments below for the community.

- Mark

Link to article

 

Guicci, Prada, Fendi, Morphine: The threat of Counterfeit Drugs in Mongolia

February 7 (UB Post) Mongolia sees its fair share of counterfeit products cross the border. But while fake Louis Vuitton toilet seats and Prada car seat covers seem to harm little more than Mongolia's fashion integrity, there are a series of more dangerous counterfeit products making their into the country.

A UNDP report revealed that between 10-13% of the world's drugs are counterfeit, and an estimated criminal profit of USD 35 billion is made each year from sales of the fake drugs. Mongolia is in a vulnerable position, between the two largest producers of counterfeit medicines, China and Russia.

Most of the drugs make their way over the Chinese border, concealed in timber and food shipments. identification of shipments is difficult and inspection agencies are critically understaffed. 

The drugs themselves vary in quality. Some have unregulated quantities of the active ingredient, making them weak or overly strong. Others are made out of substitute materials, while some are placebos compiled with dirt and chalk to resemble pills.

An increase in drug trafficking is a negative symptom of free border movement that began when the Soviet Union fell. 

Like diseases themselves, Mongolia has been opened up to a slew of unreliable treatments. According to a Mongolian Ministry of Health (MoH) report, "control on import medicines is not sufficient at the entry points, especially at the seasonal entry points." Mongolia has 14 permanent entry points along its borders, and 7 seasonal ones.

The same report notes the 85% of mongolia's drug needs are sourced from imports. An undercover test run found that an average of 8 out of 55 samples were found to be counterfeit. The drugs bought in border towns and also in Ulaanbaatar's Narantuul market were shown to be inconsistent in weight with international standards.

While many of the drugs have been found in markets and unmarked rural pharmacies, there are also fears that hospitals are opening their cabinets to the illegal medicines. In the past, nine Mongolian hospitals have been accused of selling counterfeit drugs. 

In a 2010 article, prominent Ulaanbaatar economist D.Jargalsaikhan claimed that "innocent young kids die on hospital beds because hospitals inject counterfeit injections." He also urged an apathetic Government to conduct more raids on the city's drug stores, and take a more proactive approach in examine where Mongolia's drugs come from.

Despite the growing threat that counterfeit drugs pose, there is often little defense that an under-resourced Government can offer. On a 2010 speech made by US Food and Drug Commissioner Margaret Hamburg M.D. on the subject of fake medicines, she said "it's really hard to know the full extent of the problem… It is shocking to realise that, in some parts of the world, somewhere between 30 and 50 percent of drugs to treat serious diseases are actually counterfeit."

Several parts of the world have initiated database programs to help track the movement of the illicit drugs, including a successful system set up in Germany called IT'S TRUE™. The system works on a user friendly barcode system, where registered products contain a concealed code that can be typed into the database. Counterfeit items are identified and retailers and wholesalers are warned not to invest in the products. The program is freely available online, meaning that civilians can also potentially use the software.

A similar database prototype has been set up in the Pharmaceutical department of the Mongolian Ministry of Health. While the database has received initial funding from the Government and the World Health Organisation, the software requires constant updates and will take years to reach international standards. 

Even in perfect operating order, the system would still be unable to stop those who are buying directly from sellers at border towns. Legal medication also poses a problem, with prescription drugs often sold over the counter. These include Benzodiazepines and other hypnotics such as Russian 'Zaleplon'.

In 2011, Yury Fedotov from the United Nations Office on Drugs and Crime, and Nyamdorj Tsend, the Minister of Justice and Home Affairs, made an agreement to strengthen control on drug trafficking in the Central Asian Region, however there is a limited amount that can be done without more funding.

As Mongolia opens itself up to an increasingly migratory population, the issue of drug trafficking will become more and more prominent. Increased vigilance and tighter border controls appear to be the only defense against a potentially devastating epidemic of counterfeit drugs.

Link to article

 

Table: Mongolia Related Stocks (Source: Bloomberg)

 

Name

Symbol

$

Price

Change

+-%

Open

High

Low

Volume

Time

% YTD

% 12 m

Indices

ASX 200

AS51:IND

4,274.20

-21.78

-0.51%

4,290.50

4,312.00

4,269.30

0

7-Feb

 

 

Nikkei 225

NKY:IND

8,917.52

-11.68

-0.13%

8,904.16

8,928.44

8,887.19

0

7-Feb

 

 

Hang Seng

HSI:IND

20,699.19

-10.75

-0.05%

20,808.05

20,881.85

20,649.27

0

7-Feb

 

 

MSE Top 20

MSETOP:IND

20,814.30

398.20

1.95%

20,814.30

20,814.30

20,814.30

0

7-Feb

 

 

FTSE 100

UKX:IND

5,890.26

-1.94

-0.03%

5,892.20

5,906.65

5,850.49

780,845

7-Feb

 

 

TSX Composite

SPTSX:IND

12,512.42

-47.43

-0.38%

12,568.90

12,566.70

12,424.75

203,803,031

7-Feb

 

 

S&P 500

SPX:IND

1,347.05

2.72

0.20%

1,344.33

1,349.24

1,335.92

0

7-Feb

ASX

Aspire Mining

AKM:AU

AUD

0.425

-0.01

-2.30%

0.44

0.455

0.42

4,690,581

7-Feb

14.86%

-37.50%

Blina Minerals

BDI:AU

AUD

0.005

0

0.00%

0.005

0.005

0.005

0

2-Feb

0.00%

-85.71%

Cougar Energy

CXY:AU

AUD

0.016

0.001

6.67%

0.015

0.016

0.015

682,500

7-Feb

0.00%

-5.88%

Draig Resources

DRG:AU

AUD

0.505

0.015

3.06%

0.49

0.535

0.485

1,698,041

7-Feb

-42.61%

FeOre

FEO:AU

AUD

0.28

0

0.00%

0.28

0.28

0.28

0

31-Jan

0.00%

General Mining

GMM:AU

AUD

0.12

0

0.00%

0.12

0.12

0.12

20,000

7-Feb

192.68%

-20.00%

Guildford Coal

GUF:AU

AUD

0.85

0.025

3.03%

0.82

0.855

0.81

4,980,580

7-Feb

13.33%

11.11%

Haranga Resources

HAR:AU

AUD

0.34

0

0.00%

0.35

0.35

0.34

237,000

7-Feb

19.30%

-45.60%

Modun Resources

MOU:AU

AUD

0.043

-0.001

-2.27%

0.043

0.044

0.043

1,485,900

7-Feb

-4.44%

258.33%

Mongolian Res Corp

MUB:AU

AUD

0.15

0

0.00%

0.15

0.15

0.15

80,000

7-Feb

20.00%

-66.67%

Robe Australia

ROB:AU

AUD

0.014

-0.001

-6.67%

0.015

0.016

0.014

901,637

7-Feb

0.00%

-13.31%

Voyager Resources

VOR:AU

AUD

0.068

-0.001

-1.45%

0.069

0.069

0.067

1,528,211

7-Feb

0.00%

-42.94%

Xanadu Mines

XAM:AU

AUD

0.395

0.01

2.60%

0.39

0.395

0.39

10,006

7-Feb

14.49%

-42.34%

MSE

A Board

Aduunchuluun 

ADL:MO

MNT

5,750

750

15.00%

5,200

5,750

5,200

280

7-Feb

-4.17%

-71.25%

APU

APU:MO

MNT

4,000

120

3.09%

3,880

4,000

3,879

5,425

7-Feb

-4.76%

12.36%

Atar Urguu

ATR:MO

MNT

38,000

0

0.00%

38,000

38,000

38,000

0

2-Feb

31.03%

Baganuur 

BAN:MO

MNT

9,775

1,275

15.00%

8,900

9,775

8,900

77

7-Feb

-25.38%

-59.33%

Mogoin Gol

BDL:MO

MNT

28,499

299

1.06%

28,499

28,499

28,499

11

7-Feb

-8.07%

-0.87%

BDSec 

BDS:MO

MNT

3,110

-90

-2.81%

3,200

3,200

3,100

417

7-Feb

-11.14%

0.32%

Bayangol Hotel

BNG:MO

MNT

38,000

2,000

5.56%

38,000

38,000

38,000

11

7-Feb

5.70%

21.79%

Bayanteeg 

BTG:MO

MNT

36,500

0

0.00%

31,600

36,500

31,600

0

30-Jan

1.39%

87.10%

UB BUK

BUK:MO

MNT

28,000

-1,000

-3.45%

29,000

29,000

28,000

82

7-Feb

-13.85%

242.89%

Eermel

EER:MO

MNT

2,800

99

3.67%

2,800

2,800

2,705

91

7-Feb

0.00%

-22.69%

Gobi 

GOV:MO

MNT

5,000

-29

-0.58%

5,020

5,020

5,000

776

7-Feb

-2.91%

-28.57%

Gutal

GTL:MO

MNT

3,300

0

0.00%

3,300

3,300

3,300

21

7-Feb

36.93%

Hi B Oil

HBO:MO

MNT

179

0

0.00%

180

180

179

18,803

7-Feb

-5.79%

-5.79%

Khukh Gan

HGN:MO

MNT

195

6

3.17%

190

195

190

815

7-Feb

-2.50%

8.33%

Hermes Centre

HRM:MO

MNT

79

6

8.22%

79

80

79

58,360

7-Feb

41.07%

29.51%

Jenko Tour Bureau

JTB:MO

MNT

95

0

0.00%

95

96

95

3,393

7-Feb

1.06%

-10.38%

Telecom Mongolia

MCH:MO

MNT

2,450

-50

-2.00%

2,500

2,502

2,450

1,410

7-Feb

-9.26%

-38.73%

Mongolia Dev Res

MDR:MO

MNT

950

0

0.00%

950

950

950

0

3-Feb

-5.94%

-44.12%

Moninjbar

MIB:MO

MNT

150

9

6.38%

149

150

149

2,080

7-Feb

15.38%

-6.25%

Mongol Nekhmel

MNH:MO

MNT

4,000

0

0.00%

3,100

4,000

3,100

0

3-Feb

21.95%

102.02%

Hotel Mongolia

MSH:MO

MNT

800

0

0.00%

750

800

750

0

3-Feb

-11.01%

24.81%

Darkhan Nekhii

NEH:MO

MNT

6,500

0

0.00%

6,500

6,500

6,500

150

7-Feb

4.84%

-33.67%

Nak Tulsh

NKT:MO

MNT

186

0

0.00%

186

186

186

7,000

7-Feb

6.29%

-41.32%

Olloo

OLL:MO

MNT

185

24

14.91%

168

185

168

2,610

7-Feb

-22.59%

9.47%

Remikon 

RMC:MO

MNT

175

5

2.94%

172

175

170

132,309

7-Feb

-0.57%

30.60%

Sharyn Gol 

SHG:MO

MNT

11,500

0

0.00%

11,500

11,500

11,350

397

7-Feb

1.32%

-43.63%

Shivee Ovoo

SHV:MO

MNT

14,200

200

1.43%

14,000

14,200

14,000

110

7-Feb

-7.19%

-46.42%

Sor

SOR:MO

MNT

3,000

-100

-3.23%

3,000

3,000

3,000

200

7-Feb

-21.47%

76.47%

Suu 

SUU:MO

MNT

74,000

4,000

5.71%

74,000

74,000

74,000

2

7-Feb

13.85%

159.65%

Tav

TAV:MO

MNT

Talkh Chikher

TCK:MO

MNT

11,498

698

6.46%

11,000

11,498

11,000

190

7-Feb

9.50%

34.32%

Tavantolgoi

TTL:MO

MNT

10,950

80

0.74%

10,950

11,000

10,950

967

7-Feb

-0.45%

9.55%

State Dept Store 

UID:MO

MNT

480

-20

-4.00%

480

480

480

149

7-Feb

-17.24%

-37.66%

Ulaanbaatar Hotel

ULN:MO

MNT

51,000

0

0.00%

51,000

51,000

51,000

0

3-Feb

13.33%

60.13%

Mongol Savkhi

UYN:MO

MNT

1,965

-35

-1.75%

1,965

1,965

1,965

35

7-Feb

-24.04%

210.43%

Zoos Goyol

ZOO:MO

MNT

851

21

2.53%

851

851

851

161

7-Feb

-9.47%

-20.39%

HKEx

Solartech Int'l

1166:HK

HKD

0.177

0.003

1.72%

0.175

0.18

0.174

16,207,170

7-Feb

0.00%

-77.31%

Winsway

1733:HK

HKD

2.05

-0.02

-0.97%

2.09

2.12

1.99

15,410,287

7-Feb

-10.48%

-52.77%

SouthGobi Resources

1878:HK

HKD

55

-0.55

-0.99%

54.7

55.5

54.05

13,450

7-Feb

20.75%

-54.43%

China Gold

2099:HK

HKD

23.95

-0.4

-1.64%

24

24.25

23.5

117,800

7-Feb

31.59%

-42.43%

CNNC Int'l

2302:HK

HKD

2.69

0.12

4.67%

2.59

2.8

2.58

7,491,300

7-Feb

33.17%

-62.11%

Real Gold Mining

246:HK

HKD

8.81

0

0.00%

8.81

8.81

8.81

0

7-Feb

0.00%

-24.84%

Mongolia Energy

276:HK

HKD

0.78

-0.02

-2.50%

0.81

0.82

0.78

24,632,859

7-Feb

11.43%

-65.33%

Zijin Mining

2899:HK

HKD

3.62

-0.08

-2.16%

3.65

3.69

3.57

37,080,635

7-Feb

23.97%

-8.39%

Mongolia Inv Group

402:HK

HKD

0.055

0.003

5.77%

0.054

0.06

0.053

57,408,000

7-Feb

19.57%

-47.12%

North Asia Resources

61:HK

HKD

0.255

-0.015

-5.56%

0.26

0.26

0.255

60,000

7-Feb

14.86%

-80.68%

China Daye Non-Fer.

661:HK

HKD

0.41

0

0.00%

0.41

0.415

0.405

2,536,000

7-Feb

-10.87%

-35.94%

Bestway Int'l

718:HK

HKD

0.049

-0.001

-2.00%

0.049

0.049

0.049

5,000

7-Feb

-19.67%

-60.16%

Asia Coal

835:HK

HKD

0.097

0

0.00%

0.097

0.097

0.097

0

7-Feb

-7.62%

-61.20%

Mongolian Mining

975:HK

HKD

6.71

0.01

0.15%

6.94

6.94

6.54

1,934,501

7-Feb

14.90%

-38.55%

SGX

LionGold

LIGO:SP

SGD

0.9

0

0.00%

0.895

0.9

0.895

0

7-Feb

3.45%

25.00%

LSE

Central Asia Metals

CAML:LN

GBp

88.125

1.125

1.29%

85.5

88.75

85

154,168

7-Feb

54.95%

-4.21%

Petro Matad

MATD:LN

GBp

28.125

-2.125

-7.02%

30.25

30.25

28.125

202,126

7-Feb

13.64%

-78.20%

Metal-Tech

MTT:LN

GBp

4.375

0.125

2.94%

4.25

4.375

4.25

23,000

7-Feb

16.67%

-61.96%

Nova Resources

NOVA:LN

GBp

8.125

-0.625

-7.14%

8.625

8.625

8.125

50,000

7-Feb

242.11%

306.25%

Origo Partners

OPP:LN

GBp

30.5

-0.125

-0.41%

30.625

30.625

30.5

56,000

7-Feb

-12.86%

-29.89%

Canada

Aberdeen Int'l

AAB:CN

CAD

0.61

0.01

1.67%

0.61

0.62

0.61

104,800

7-Feb

-6.15%

-21.73%

Altan Rio Minerals

AMO:CN

CAD

0.53

0

0.00%

0.53

0.53

0.53

0

3-Feb

Blue Zen Mem. Parks

BZM:CN

CAD

0.1

0

0.00%

0.1

0.1

0.1

610

7-Feb

100.00%

-80.00%

Centerra Gold

CG:CN

CAD

19.2

0.48

2.56%

18.52

19.25

18.02

809,639

7-Feb

6.67%

16.32%

China Gold

CGG:CN

CAD

3.2

0.06

1.91%

3.14

3.24

3.089

213,248

7-Feb

25.00%

-41.07%

Desert Eagle Res

DER:CN

CAD

0.45

0

0.00%

0.275

0.45

0.275

0

27-Jan

-72.22%

Denison Mines

DML:CN

CAD

1.76

-0.05

-2.76%

1.8

1.8

1.74

1,675,873

7-Feb

38.58%

-56.97%

East Asia Minerals

EAS:CN

CAD

0.73

-0.01

-1.35%

0.74

0.74

0.68

281,624

7-Feb

55.32%

-88.90%

Erdene Resource

ERD:CN

CAD

0.53

0.04

8.16%

0.46

0.56

0.46

302,392

7-Feb

41.33%

-64.90%

Entree Gold

ETG:CN

CAD

1.36

0

0.00%

1.35

1.36

1.32

63,600

7-Feb

9.68%

-55.70%

Fortress Minerals

FST:CN

CAD

3.8

0

0.00%

3.8

3.8

3.8

0

6-Feb

-7.32%

-29.63%

Gulfside Minerals

GMG:CN

CAD

0.07

-0.01

-12.50%

0.09

0.09

0.07

55,000

7-Feb

-17.65%

-22.22%

Global Met Coal Corp

GMZ:CN

CAD

0.14

0

0.00%

0.14

0.14

0.14

0

6-Feb

12.00%

Ivanhoe Energy

IE:CN

CAD

1

0

0.00%

0.99

1

0.99

154,615

7-Feb

-10.71%

-69.79%

Ivanhoe Mines

IVN:CN

CAD

16.64

-0.4

-2.35%

17.11

17.11

16.37

1,489,689

7-Feb

-8.02%

-42.08%

Kincora Copper

KCC:CN

CAD

0.285

0

0.00%

0.29

0.32

0.285

0

6-Feb

-8.06%

14.00%

Khan Resources

KRI:CN

CAD

0.185

0.01

5.71%

0.18

0.19

0.18

85,500

7-Feb

-7.50%

-66.96%

Lucky Strike

LKY:CN

CAD

0.275

-0.005

-1.79%

0.275

0.28

0.275

11,000

7-Feb

-22.54%

-64.29%

Meritus Minerals

MER:CN

CAD

0.035

0

0.00%

0.035

0.035

0.035

0

3-Feb

40.00%

-80.56%

Manas Petroleum

MNP:CN

CAD

0.29

-0.005

-1.69%

0.265

0.3

0.265

217,000

7-Feb

100.00%

Prophecy Coal

PCY:CN

CAD

0.48

0.04

9.09%

0.445

0.485

0.44

1,616,206

7-Feb

17.07%

-42.77%

Puget Ventures

PVS:CN

CAD

0.49

0

0.00%

0

17-Sep

SouthGobi Resources

SGQ:CN

CAD

7.06

-0.04

-0.56%

7.05

7.09

6.91

32,312

7-Feb

17.67%

-54.66%

Solomon Resources

SRB:CN

CAD

0.085

0

0.00%

0.085

0.085

0.085

0

2-Feb

21.43%

-59.52%

Undur Tolgoi Minerals

UTM:CN

CAD

0.2

0

0.00%

0.2

0.2

0.2

0

1-Feb

0.00%

Mongolia Growth Grp

YAK:CN

CAD

4.34

0.09

2.12%

4.34

4.34

4.26

11,770

7-Feb

11.28%

520.00%

US

Denison Mines

DNN:US

USD

1.75

-0.05

-2.78%

1.82

1.82

1.75

501,363

7-Feb

40.00%

-57.63%

Entree Gold

EGI:US

USD

1.33

-0.02

-1.48%

1.36

1.38

1.21

50,970

7-Feb

10.83%

-56.96%

Ivanhoe Energy

IVAN:US

USD

1

0

0.00%

1

1.01

0.999

502,865

7-Feb

-10.71%

-70.06%

Ivanhoe Mines

IVN:US

USD

16.79

-0.28

-1.64%

17.1199

17.12

16.41

2,687,406

7-Feb

-5.25%

-41.92%

Manas Petroleum

MNAP:US

USD

0.3

0.01

3.45%

0.29

0.32

0.2601

1,193,825

7-Feb

103.39%

-50.00%

Mongolia Growth Grp

MNGGF:US

USD

4.312

0.035

0.82%

4.366

4.366

4.292

9,000

7-Feb

12.15%

Blue Wolf MGL

MNGL:US

USD

9.67

0

0.00%

9.67

9.67

9.67

0

27-Jan

0.52%

Blue Wolf MGL Unit

MNGLU:US

USD

10.32

0

0.00%

10.08

10.32

10.08

0

6-Feb

2.69%

 

 

---

"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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