CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based ASX Licensed Financial Services Company. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-9999-6779.
19 second half 2010 exploration wells to watch
July 28 (smallcapnews.co.uk) Last week we discussed the fact that the smaller listed explorers appeared to be having a good year with the exploration drill bit. So, what confirmed or almost confirmed wells are coming up in the near future to provide a catalyst, or in some cases a further catalyst, to move the share prices of our intrepid band of small-cap explorers?
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Petro Matad will be hoping the results of the Davsan Tolgoi-2 well in Mongolia will be as spectacularly received by investors as the Davsan Tolgoi-1 well was when the discovery was announced earlier this month. On announcement, the Petro Matad share price leapt from 60 pence to 140 pence. The DT-2 well will spud after completion of testing on DT-1.
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Mongolia Development Resources shares resume trading on MSE
July 28 (news.mn) Mongolia Development Resources (MDR) has become the first investment holding company listed on the Mongolia Stock Exchange (MSE). The company shares resumed trading on MSE on July 15, following the approval of the new charter and new prospectus by the Financial Regulatory Commission. MDR shares are now traded under new ticker MDR, instead of the earlier TSU, dating from the time when the company was known as Tuul Songino Water Resource.
The main activity of MDR is to build and provide diversified exposure to the Mongolian economy for local and international investors. The main areas of investments are property, mining, oil & gas, infrastructure and financial services. The company launched its IPO on the Mongolia Stock Exchange in December 2007, raising MNT 13.7 billion in one of the largest IPOs in the history of MSE to date, with 90% of shareholders being international investors.
(Mogi: MDR was formed through backdoor listing. Previously was listed as Tuul Songino Water Resources JSC on the Mongolian Stock Exchange. Eurasia Capital had been accumulating Tuul shares over the last several years)
Hong Kong-listed companies acquire resource assets worth USD966 million in Mongolia
July 28 (news.mn) Over the last 12 months, Mongolia has become an attractive investment destination for companies listed on the Hong Kong Stock Exchange (HKEx). Several such companies have acquired resource assets in Mongolia worth USD966 million in M&A deals. All recent Mongolia M&A deals in which Hong Kong companies were involved were completed through injection of resource assets into the existing publicly listed companies. Before acquisition, these companies engaged in a diverse range of activities and industries including agriculture, waterworks, IT, clean tech, plastic products and even manufacturing of toys and gifts.
The following are some of the HKEx-listed companies now primarily Mongolia-focused resource companies following their acquisitions:
-Bestway International Holdings, an investment holding company engaged in trading of plastic products, acquired two tungsten mines in Mongolia for USD121 million in July 2009.
-North Asia Resources Holdings, formerly known as Green Global Resources Ltd., acquired 100% of North Asia Resources Group Ltd., a private resource company in Mongolia, for USD227million in December.
-Kiu Hung Energy Holdings, an investment holding company with businesses in energy, gift and toy industries, acquired coal assets in Mongolia from First Dean Holdings Ltd for USD180 million in March.
-Solartech International Holdings, a manufacturer of cables, wires, connectors and terminals, has acquired an 87.9% stake in Sun Progress Ltd which owns a copper-gold-silver mine in Mongolia for USD193 million in May.
-Ming Hing Waterworks Holdings, engaged in waterworks technology and engineering, acquired a number of coal, gold and copper mining and exploration licenses in Mongolia for USD245 million in June.
-Mongolia Energy Corp, formally New World CyberBase Ltd., was the first HKEx-listed company to acquire a resource asset in Mongolia through asset injection. It paid over USD150 million for a coal mine in January 2007.
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Official social and economic data published
July 28 (news.mn) The National Statistical Office has revealed social and economic figures for June and, in some cases, for the first six months of the year.
Consumer price index
The national consumer price index in June dropped 1.5 percent from May but was 11.4 percent higher than in June, 2009.
Budget
The deficit in the General Government Budget was MNT93.8 billion less in the first half of 2010, when compared to the same period last year. Tax revenue increased 66.2 per cent. Collection from the windfall profits tax rose 4.2 times, from corporate income tax 2.1 times, and from VAT 69.0 percent.
Non-tax revenue in this period fell 26.2 percent year on year. Total capital expenditure was 57.0 percent higher but foreign financed capital expenditure decreased 87.4 percent.
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Share trading
A total 1.6 million shares valued at MNT1.2 billion were traded in 21 trading days in June. The number of shares traded was 4.1 times fewer than in May and 7.8 times fewer than in June, 2009.
http://english.news.mn/content/22549.shtmlLink to article
Is it still worth investing in Ulaanbaatar property?
Article written by Christopher de Gruben for M.A.D. - Post Transition Services in Mongolia
Is it still worth investing in Ulaanbaatar property?
If so, what types of Mongolian property investment makes the most sense?
As the summer economic growth period is reaching its traditional zenith, property prices are yet again on the slow path upwards. For all intents and purposes, it seems that Mongolia's recession blues are over to be replaced by a new wave of optimism.
Is this growth sustainable and does the UB real estate market still makes investment sense?
The crisis seems to have had a lasting impact on Mongolia's investment environment; it has served its purpose as a wake up jolt, demonstrating Mongolia's heavy vulnerability to international economic swings with it's over reliance on commodity prices as a catalyst for economic growth. …
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Challenges of the Ulaanbaatar real estate market.
Looking at the market from an outsider's perspective, you may be forgiven for thinking that it is back in full swing with rental yields yet again advertised at staggeringly high levels along with heavy promotion of ambitious construction projects. This is not necessarily an accurate picture of what is happening on the ground. …
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What are the predictions on the Ulaanbaatar Property Market?
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What is the basis of investing in Ulaanbaatar property?
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What are the expat tenant demographics for Ulaanbaatar?
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What sort of Ulaanbaatar property investments are viable?
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Mongolian mining company guards clash with illegal miners
ULAN BATOR, July 28 (Xinhua) -- Security guards of a mining company in western Mongolia clashed with illegal miners known as "ninja miners," leaving many of the combatants injured, local media said Wednesday.
About 50 security guards of a gold mining company fought for over two hours with about 200 ninja miners and local residents in Omnogobi county of Uvs province in western Mongolia.
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A bill to regulate ninja mining activities is pending in the Mongolian parliament.
Anod Bank accounts transferred to Savings Bank
July 28 (news.mn) The Central Bank has announced that all accounts with Anod Bank have been transferred to Savings Bank. The Mongol Shuudan Bank building behind the Central Post Office is now the central office of Savings Bank, while its main branch is near Mongolbank. All issues concerning accounts held in Anod Bank are being settled there.
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CUSTOM INCOME INCREASES
July 28, Ulaanbaatar, Mongolia, /MONTSAME/ By first six months of this year, the customs organizations have transferred MNT 315,726.5 million to the state budget. The execution of the customs income to the state budget for the first half of this year had an increase by MNT 136.2 billion or 63.0 per cent against the previous year.
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The size of import reached MNT 1848.7 billion in the first half year, showing an increase by MNT 628.0 billion or 51.4 per cent compared with the same period of previous year. The size of exports with taxes decreased by MNT 37.7 billion against the execution of first half of the previous year. Comparing the increase in imports of products with the excise tax to the previous year, production of alcoholic drinks increased by 3184.3 thousand liters or 54.4 per cent, in which beers increased by 57.6 per cent, vodkas and whisky--by 35.8 per cent, and wines--by 24.7 per cent.
The oil products increased by 44.9 thousand tons or 16.5 per cent against the previous year, in which auto fuel with up to 90 octane--by 4929.4 tons, auto fuel with above 90 octane--by 772.6 tons, diesel fuel--by 39201.1 thousand tons.
The import of auto mobiles increased by 3,933 or 76.2 per cent, against the previous year. In general, Mongolia imported products of MNT 1848.7 billion in the first half year.
CH.KHURELBAATAR: GOVERNMENT WILL BE ABSENT IN UB FOR TWO WEEKS
July 28, Ulaanbaatar, Mongolia, /MONTSAME/ According to some sources, the cabinet members will not hold their meetings this summer because the most of them have taken vacation. About it was asked from the Cabinet Secretariat of the government Ch.Khurelbaatar.
Q: - Is it true that the cabinet meetings will not be arranged?
A: - As everybody knows, the Premier is working in rural areas in accordance with an appointment touring some 60 soum of nine provinces. Some cabinet members are accompanying him to get au fait with works and situation in rural areas and to investigate realization of decisions. It means that the cabinet meetings will not run within nearest two weeks.
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Voyager Resources Hits "Exceptional" High Grade Gold At Daltiin Ovor
(Mogi: VOR reached as high as 2.1c or 61.5% higher than last close on the announcement. 51.3M shares traded hands valued at A$893K, closing the day at 1.6c)
July 28 (Proactive Investors) Voyager Resources (ASX: VOR) has reported "exceptional" high grade drilling results from the North Hinge Zone at the Daltiin Ovor Gold Project in Mongolia with intersections including 3 metres at 50.59 g/t gold.
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Drilling returned "exceptional" results, including:
- 3 metres at 50.59 g/t gold, 4.0% copper & 31.3 g/t silver from 6 metres (DL_12_RC)
- 9 metres at 10.45 g/t gold, 0.8% copper & 16.8 g/t silver from 11 metres (DL_04_RC)
- 9 metres at 10.40 g/t gold, 0.9% copper & 14.3 g/t silver from 10 metres (DL_10_08_RC)
Drilling was targeted at testing trenching results, which included:
- 12 metres at 8.7 g/t gold, 24 g/t silver and 0.67% copper
- 10 metres at 7.8 g/t gold
- 15 metres at 5.4 g/t gold, 22 g/t silver and 0.5% copper
A further RC drilling programme is now being planned to test strike extensions, down dip continuity and other mineralised areas that have been identified from previous trenching.
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The company will also drill test a number of targets outside of the main hinge zone. This includes the central zone, where drilling has returned up to 3 metres at 6.28 g/t gold and the southern zone, where trenching has returned 10 metres at 7.8 g/t gold and 3 metres at 19.4 g/t gold.
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Kell Nielsen, managing director, said the initial drilling results at Daltiin Ovor are highly encouraging and further drilling is being planned. The company has also completed initial drilling programmes at the Argalant and Tsagaan Gold Projects, where results will be reported over the next month.
Voyager also continues to assess additional quality gold opportunities in Mongolia.
Link to article
Link to official announcement
Hunnu Coal intersects multiple coal seams at Tsant Uul Project
(Mogi: HUN reached as high as 93.5c on the news, with 990K share trading hands, valued A$891K at closing. HUN closed 3.5c higher at 90.5c)
July 28 (Proactive Investors) Hunnu Coal (ASX:HUN) has reported the initial test results of coal quality analyses performed on samples taken from the due diligence drill cores at the Tsant Uul Coking Coal Project in southern Mongolia, demonstrating similarities to coals at the giant Tavan Tolgoi Coking Coal Field.
Tsant Uul is strategically located within 40 km of Tavan Tolgoi in the Umnugobi Province. An extensive drilling programme is to commence in the coming weeks with the aim of generating initial JORC resources and further coal test work.
The company's drilling programme included seven diamond core holes, five of which intersected multiple coal seams ranging from 0.5m to 25.22m in thickness starting from as shallow as 7.8m from the surface. Drilling core samples were analysed at Alex Stewart Laboratory in Mongolia for the coal parameters.
The coal quality analyses of five drill core samples showed Total Moisture = 5% to 6.9%, Ash = 15.2% to 36%, Volatile Matters = 26.1 to 29.6%, Fixed Carbon = 36.2% to 50.7%, Sulfur = 0.3% to 0.55% and the gross Qdaf = 6,990 kCal/kg to 7,466 kCal/kg, and CSN = 0 to 1.5.
Tsant Uul Coking Coal Project has an exploration target of 50Mt to 100Mt of coal.
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George Tumur, managing director, said the company has set a timetable of developing three coal mines in Mongolia within the next four years.
Link to article
Link to official release
Russia, Mongolia to hold joint antiterrorism exercises in September
CHITA, July 28 (RIA Novosti) Russia and Mongolia will hold joint antiterrorism exercises in the Siberian Military District in September, the district press service reported.
The drills, called Darkhan-3, will involve some 1,000 servicemen and 300 items of hardware. They will be held in three stages.
"Joint use of Russian and Mongolian troops to counter international terrorism threats will be practiced during the exercises," the press service said.
Link to article
Inner Mongolia iron ore imports double in value in H1
July 26 (SteelGuru) According to the local customs authorities in Hohhot, capital of the Chinese autonomous region of Inner Mongolia, in the H1 of the current year the region imported 2.538 million tonnes of iron ore up 59.4% YoY with a value of USD 230 million up 109.1% YoY.
Inner Mongolia's increased import volume of iron ore may be attributed to the increased demand for steel raw materials caused by the rapid development of steel consuming industries such as automotive and infrastructure. In line with the price increase of iron ore in the international markets, the price of iron ore imports coming into the region has also increased. The average price of imported iron ore in Inner Mongolia for the first six months of this year was USD 92 per tonne up 29.6% YoY.
Australia
Stocks end flat as energy stocks retreat
July 29 (AAP) Australian stocks fluctuated, ending lower for the first day in five, with gains by miners countered by falls in energy stocks.
The benchmark S&P/ASX200 index ended the day off just 5.8 points, or 0.1 per cent, at 4524.1, while the broader All Ordinaries index had dropped 5.9 points or 0.1 per cent, to 4536.2 points.
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What you need to know:
· The Australian dollar rose above 90 US cents
· Asian shares fell on economic growth worries
· Spot gold rose to $US1167 an ounce
· Oil futures were hovering at $US77 a barrel
· Dow futures were up 23 points at 10,471 points
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''It is a very strong recovery from the depths of about a month ago.''
Mining giant BHP Billiton closed up 26 cents, or 0.65 per cent, at $40.46, while rival Rio Tinto rose 46 cents to $71.50.
Gold producers were mixed, with Newcrest Mining down six cents at $32.72, and the company it is seeking to take over, Lihir Gold, was steady at $4.06.
At 1629 AEST spot gold in Sydney was trading at $US1,168.20 per fine ounce, up $US4.25 on Wednesday's close of $US1,163.95 per ounce.
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On the Sydney Futures Exchange at 1615 AEDT, the September share price index contract was 13 points lower at 4,495 on a volume of 19,222 contracts.
China
Chalco Halted From Trading Ahead of Rio Signing Ceremony Today
July 29 (Bloomberg) -- Aluminum Corp. of China Ltd., the nation's biggest producer of the metal, suspended its shares from trading ahead of a signing ceremony today in Beijing that will be attended by Rio Tinto Group.
Aluminum Corp.'s parent company, known as Chinalco, announced the event without giving details of the agreement. Rio will attend the ceremony starting at 3:30 p.m. local time, according to an invitation seen by Bloomberg News.
Chinalco in March signed a non-binding accord to pay $1.35 billion for a stake in Rio Tinto's Simandou iron ore project in Guinea. The state-owned company is "watching closely" for opportunities to invest in other projects abroad, including Oyu Tolgoi, a Mongolian copper venture between Rio and Ivanhoe Mines Ltd., Xiong Weiping, chairman of both Chinalco and Chalco, as publicly traded Aluminum Corp. is known, said on March 29.
Chalco and Rio will sign an agreement for the development of a large iron-ore mine in Guinea, the Shanghai Securities News reported, without saying where it got the information.
Chinalco would fund the purchase of a 44.65 percent stake in Simandou, described by Rio as the world's "top" undeveloped iron-ore deposit, by financing development over the next two to three years, London-based Rio said March 19. Simandou has 2.25 billion metric tons of iron ore resources, Rio said on March 15.
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High Temperatures in China Fuel Electricity Demand
July 28 (Bloomberg) -- Temperatures in the Chinese provinces of Inner Mongolia, Gansu and Xinjiang are forecast to exceed 40 degrees Celsius (104 Fahrenheit) today, as an ongoing heat wave spurs energy demand and hurts tourism.
Beijing is forecast to see temperatures as high as 36 degrees Celsius today, according to the China Meteorological Administration. Electricity use in the Chinese capital hit a record daily high on July 23, the Beijing Evening News reported.
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Power consumption in the neighboring municipality of Tianjin hit a record on July 26, the Tianjin Daily reported yesterday. The city is forecast to see temperatures of as high as 35 degrees today, 36 degrees tomorrow and 37 degrees on July 30, according to the weather administration.
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High temperatures in Inner Mongolia have welted grasslands in the province's northwest, with the number of tourists visiting the region this month declining by half from a year ago, the China Daily reported today, citing Ma Yongsheng, Vice Director of the local tourist bureau.
Global
Most Asian Stocks Fall on Fed Comments; HTC, Nippon Yusen Gain
July 29 (Bloomberg) -- Most Asian stocks fell as U.S. Federal Reserve comments that growth slowed in some areas of the economy overshadowed signs of increased corporate earnings.
About five stocks fell for every four that rose on the MSCI Asia Pacific Index, which gained 0.2 percent to 119.65 as of 5:48 p.m. in Tokyo. The gauge has slumped 7.4 percent from its high this year on April 15 on concern Europe's debt crisis and Chinese steps to curb property prices will slow global growth.
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Japan's Nikkei 225 Stock Average fell 0.6 percent and Hong Kong's Hang Seng Index was little changed. Australia's S&P/ASX 200 Index slipped 0.1 percent, while South Korea's Kospi Index slid 0.2 percent. China's Shanghai Composite Index gained 0.6 percent after the central bank said it will maintain a "moderately loose" monetary policy.
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Futures on the U.S. Standard & Poor's 500 gained 0.6 percent. The gauge slipped 0.7 percent yesterday in New York after the Fed said U.S. economic growth slowed in some areas in the past two months, dragged down by commercial real estate and the expiration of a tax credit for homebuyers.
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Faltering Growth?
Economic data from the U.S. this month have fueled concerns the world's biggest economy is stalling. Sales at U.S. retailers declined in June for a second month, the Commerce Department reported on July 14. The Conference Board reported on July 27 that its index of consumer confidence fell in July from June.
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Link to article
Europe Stocks Rise on Economic Outlook; U.S. Futures, Euro Gain
July 29 (Bloomberg) -- The Stoxx Europe 600 Index rose to a 12-week high as the region's economic outlook improved and earnings from AstraZeneca Plc and Volkswagen AG beat estimates. U.S. index futures gained and the euro strengthened.
The Stoxx 600 increased 0.4 percent at 10:30 a.m. in London as two stocks advanced for every one that declined. Futures on the U.S. Standard & Poor's 500 Index climbed 0.6 percent. The euro appreciated 0.6 percent against the dollar. Sugar jumped to a four-month high, wheat headed for the biggest monthly rally since 1973 and gold gained 0.4 percent.
The European Commission said confidence in the region's economy rose to the highest in more than two years, while German unemployment fell for a 13th month and French Finance Minister Christine Lagarde predicted a "serious" acceleration in the global expansion next year. More than 60 percent of the Stoxx 600 companies that reported earnings since July 12 have beaten analyst estimates, according to data compiled by Bloomberg.
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European Sentiment
An index of executive and consumer sentiment in the 16 euro nations rose to 101.3 from 99 in June, the European Commission said. That's the highest since March 2008.
The gain in U.S. futures indicated the S&P 500 will snap a two-day decline. Exxon Mobil Corp., Amgen Inc., Motorola Inc., Colgate-Palmolive Co., Tyco International Ltd., CME Group Inc., Potash Corp. of Saskatchewan Inc., Franklin Resources Inc. and Thomson Reuters Corp. are among companies scheduled to release results today. Earnings have exceeded analysts' estimates at 78 percent of companies in the S&P 500 that have reported second- quarter results so far, according to data compiled by Bloomberg.
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The euro appreciated to $1.3075 before a government report tomorrow that may show economic growth in the U.S. slowed to 2.5 percent in the second quarter, from 2.7 percent in the first, based on the median forecast of 80 analysts in a Bloomberg survey. Initial jobless claims may have declined to 460,000 in the week ended July 24, from 464,000 the previous week, a separate survey showed before today's figures.
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Link to article
Russia confirms $29bn asset sales
July 29 (FT) Russia is aiming to raise up to $29bn (€22.3bn) through asset sales on the open market over the next three years in the biggest privatisation programme since the chaotic asset sales of the 1990s.
Confirming the privatisation strategy on Wednesday, Alexei Kudrin, Russia's finance minister, said: "We will sell a significant stake in state companies on the market. We plan to keep controlling stakes."
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… But officials have yet to approve a final list of which state assets will be sold, even though the programme was first announced close to a year ago.
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The economic development ministry issued a revised list of 11 companies to be privatised, having removed groups including Russian Railways, that had been suggested by the finance ministry days earlier.
Mr Kudrin said the sale of a minority stake in Russian Railways would be delayed by two to three years.
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Link to article
Tiger Club's U.S. Millionaires Pounce on Berkshire's 19% Return
July 28 (Bloomberg) -- Warren Buffett's Berkshire Hathaway Inc. is the darling of U.S. millionaires, or at least those in Tiger 21, a peer investment group.
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Members of New York-based Tiger 21 picked Berkshire as their top stock in a survey of preferred investments because they like Buffett's strategy of buying companies, according to Michael Sonnenfeldt, a founder of Tiger 21, which is an investment club of 140 members, most of whom have a net worth of at least $10 million, totaling more than $10 billion in collective assets.
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"No one wants to be a stock picker, but if they are, they're going to back someone who has essentially created his wealth through buying stock," said Sonnenfeldt, 54, referring to Buffett, who has built Omaha, Nebraska-based Berkshire over four decades of takeovers. Berkshire's Class A and Class B shares have returned 19 percent this year.
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'Back to Basics'
"Given how much they've been burned by investing in sophisticated instruments they found they didn't understand a little too late, they are going back to basics," said Sonnenfeldt, who estimated that 70 percent of members are former entrepreneurs.
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Misc
Ten key indicators show global warming "undeniable"
July 29 (Reuters) - Melting glaciers, more humid air and eight other key indicators show that global warming is undeniable, scientists said on Wednesday, citing a new comprehensive review of the last decade of climate data.
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Without addressing why this is happening, the researchers said there was no doubt that every decade on Earth since the 1980s has been hotter than the previous one, and that the planet has been warming for the last half-century.
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The entire report can be seen online here
The report is being published in the Bulletin of the American Meteorological Society.
Link to article
Mongol Derby set for second running
The second running of the 1000-kilometre relay horse race known as the Mongol Derby will begin in little more than a week.
The event on the Mongolian steppe is scheduled to begin on August 7.
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The derby is organised by a British company, The Adventurists, in collaboration with the Mongolia-based Tengri Group.
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Email: mogi@cpsinternational.mn
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