CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
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| Close: Mongolia Related ASX Listed Companies, November 24, 2010 |
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| Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
| HUN | 1.150 | -0.010 | 1.125 | 1.160 | 1.170 | 1.170 | 1.110 | 852,762 |
| VOR | 0.039 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0 |
| ALG * | 0.400 | 0.000 | 0.360 | 0.400 | 0.000 | 0.000 | 0.000 | 0 |
| AKM * | 0.475 | 0.025 | 0.475 | 0.480 | 0.460 | 0.485 | 0.450 | 3,317,571 |
| GMM | 0.120 | 0.000 | 0.120 | 0.125 | 0.120 | 0.120 | 0.120 | 54,500 |
| LRL * | 0.240 | 0.000 | 0.235 | 0.250 | 0.235 | 0.240 | 0.235 | 535,250 |
| LEI * | 31.910 | -0.020 | 31.900 | 31.960 | 31.950 | 32.050 | 31.200 | 671,821 |
| RIO * | 83.840 | -0.200 | 83.830 | 83.850 | 83.530 | 83.950 | 82.950 | 2,051,833 |
| BHP * | 43.240 | 0.040 | 43.210 | 43.300 | 43.080 | 43.350 | 42.680 | 9,605,703 |
An * next to the security code indicates there has been an announcement today relating to that security. Click on the * to view the announcement.
Source: asx.com.au
ASX Announcements of interest, Thursday, November 25, 2010
- Hunnu Coal Limited (ASX:HUN) – Credit Suisse Becoming A Substantial Holder at 5.1%
Toshiba Signs MOU on Cooperation in Development of Mineral Resources and Social Infrastructure with Mongolia's MNFCC
November 28 (Media-Newswire.com) - TOKYO — Toshiba Corporation ( TOKYO: 6502 ) and Mongolia's MNFCC LLC signed a Memorandum of Understanding ( MOU ) under which they will initiate discussions on possible cooperation in the development of Mongolia's mineral resources, including uranium, rare earth and rare metals products, and enhancement of the country's social infrastructure.
Mr. Naoto Kan, the Prime Minister of Japan, met the Mongolian President, Mr. Tsakhiagiin Elbegdorj, on November 19, 2010, and the two agreed to build a strategic partnership and to secure mutually beneficial cooperation in developing mineral resources in Mongolia. Further moves to promote an economic relationship between Japan and Mongolia are expected.
On the basis of the MOU, Toshiba will seek to secure a mutually beneficial cooperative relationship with MNFCC, which is charged with providing strategic advice and policy implementation in the areas of mineral resources, energy, and social infrastructure under Mongolia's public-private-partnership program. Toshiba will conduct feasibility studies on key social infrastructure essential for securing Mongolia's continued economic growth, including thermal, nuclear and solar photovoltaic power systems and transmission and distribution networks and will seek to promote mutual development of mineral resources in an effort to secure stable supply.
About MNFCC
Company Name: MNFCC LLC
Founded: September 2010
Representative: Dugersuren Dashdorj
Lines of Business: Implementation of Mongolian public-private-partnership for development of mineral resources, energy and social infrastructure
Long Harbour Reviewing Precious Metals Properties in Mongolia
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 24, 2010) - Long Harbour Capital Corp. (TSX VENTURE:LHC) reports that, as part of its ongoing evaluation of business opportunities in the natural resource sector, the Company is currently reviewing various precious metals, rare earth mineral and uranium properties in Mongolia.
MEC 6 Month Interim Results Ending September 30
November 26 (MEC) -- The directors (the "Directors") of Mongolia Energy Corporation Limited (the "Company") announce the unaudited consolidated results of the Company and its subsidiaries (the "Group" or "MEC") for the six months ended September 30, 2010 together with the comparative figures for the corresponding period in the previous year as follows:
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MMC Close, November 29
November 29 (Mogi) Mongolian Mining Corporation (HK:975) --
HK:0975 Snap quote, November 29 (all in HKD except where noted. Source: ETNET):
· Close: $8.57
· Open: $8.35
· High: $8.59
· Low: $8.35
· 52w High: $9.72
· 52w Low: $7.02
· Listing price: $7.02
· Volume: 695,000 shares
· Total turnover: $5.923 Million
· Market cap (on close): $30.863 Billion (around US$3.98 billion (Bloomberg November 29: US$=HK$7.7634))
Link to real-time quotes and charts of MMC (sites licensed by HKEx): ETNET, AAStocks
Ivanhoe Mines says has strategic options
* Seeks to head off possible creeping takeover by Rio Tinto
* Sovereign wealth funds keen on firm's key focus Mongolia
LONDON, Nov 24 (Reuters) - Ivanhoe Mines (TSE:IVN) has plenty of options as it fights a possible "creeping" takeover by Rio Tinto (LON:RIO), its founder said, noting sovereign wealth funds were keen on Mongolia, where Ivanhoe is developing a huge mine.
Robert Friedland -- who is also executive chairman, CEO and a major shareholder -- told a conference in London there were no shortage of possible investors.
"There's a lot of alternatives ... many countries are interested in Mongolia. For example, the Middle Eastern sovereign wealth funds," he said.
Abu Dhabi's investment council has invested in a Mongolian bank while both Kuwait and Libya were interested in the country, Friedland added.
He was restricted on how much he could say because Ivanhoe was in the midst of a rights issue to raise up to $1 billion, but he told journalists on the sidelines of the conference some news would emerge fairly soon.
Ivanhoe is evaluating a range of options as it grapples with its biggest shareholder Rio Tinto (ASX:RIO) about terms under which Rio can increase its stake in Ivanhoe.
The group is seeking to arrange more than $2 billion of financing with 13 institutions, including the World Bank's International Finance Corporation, BNP Paribas and Standard Chartered.
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Mongolia's motherlode
November 26 (Financial Post) This is the big one.
Deep in the Gobi Desert, in one of the most remote and bleak parts of the world, the most talked-about copper-gold mine in history is going up with remarkable speed.
Outside the Oyu Tolgoi mine site, the Gobi is as it always is: Empty landscapes carry on as far as the eye can see, interrupted by the occasional camel herd dotting the countryside. Inside, more than 5,000 people from 24 countries are hard at work, building a mine over a deposit holding an estimated 81 billion pounds of copper and 46 million ounces of gold, and just 80 kilometres from commodity-hungry China.
In any country, this would be a monumental project. In Mongolia, with only three million people, this is the most important and controversial capital project in its history, and nothing really comes close. When Oyu Tolgoi reaches full production by 2018, it is expected to make up a staggering 30% of the country's gross domestic product. While there has been a lot of talk in Canada lately about "strategic" potash deposits, they can't hold a candle to this.
…
The project is now so big that it has become a litmus test for Western investment in Mongolia, which the government badly wants to attract.
"If we do succeed with this project, it will encourage many other Canadian and international companies to work in Mongolia," says Sukhbaatar Batbold, the country's Prime Minister.
Yet the future of Oyu Tolgoi is still cloudy. A dispute between Ivanhoe and joint-venture partner Rio Tinto Ltd. has overshadowed all the progress at the site and made investors nervous. Rio Tinto, a London-based mining powerhouse, has made it clear it wants the biggest piece of Oyu Tolgoi it can get. And Mr. Friedland is not eager to cede control as he tries to raise billions of dollars of financing.
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The discovery of the Oyu Tolgoi site actually dates back decades. In 1983, local herders told Mongolian government geologist Dondog Garamjav about green-stained rocks they noticed in the South Gobi. He mapped out the area as part of a country-wide exploration program. It became known as Oyu Tolgoi, or "Turquoise Hill," because of the colour of the copper ore in the rocks.
By the mid-1990s, Mr. Garamjav was working for Australia's Broken Hill Proprietary Co. (later BHP Billiton), which got an exploration licence for the area.
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Before long, BHP gave up and put the project up for sale. Copper prices were down around US65¢ a pound and the company was cutting back exploration around the world.
In March 1999, at a mining conference in Toronto, Ivanhoe executive Douglas Kirwin took a look at BHP's drill core and saw potential to expand the copper resources. Ivanhoe bought the property in 2000 and started drilling shallow holes.
The results were nothing special, and by the end of 2000, the company had not found anything close to a mineable resource. It was also burning through cash, and the company considered giving up on Mongolia. Project head Charles Foster decided to drill some deeper holes and see what happened.
"The result was incredible," recalls Sanjdorj Samand, vice-president of the project.
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Ms. Oyun, a former Rio Tinto geologist-turned-politician, says the biggest risk is bad political decision-making. She wants to see the mining revenues invested in education and health, but worries that a bad call by government, like a repeat of the windfall tax, could undo many of the benefits from Oyu Tolgoi and other projects.
"I'm very optimistic for the next five or 10 years, but I always put in brackets, 'Subject to politics,' " she says.
Mr. Batbold, the Prime Minister, would probably agree. He and his Cabinet recently toured the project with Mr. Friedland, and came away impressed with what they saw.
Once the Canadians and the British and everyone else are finished building, it will be up to Mr. Batbold to harness Mongolia's massive economic opportunity.
Mongolia to sell $500-$600mln bond early-2011-c.bank
* Debut bond of $500 mln to $600 mln seen in early 2011
* C.bank favours bond half the size govt had first proposed
* Togrog up 15 pct this year as China demand fuels growth
LONDON, Nov 24 (Reuters) - Mongolia may launch its debut international bond early next year and the deal should total around $500 million to $600 million, a central bank official said on Wednesday.
"We believe a good size for the bond would be $500-$600 million, maximum $700 million. I think it will be at the beginning of next year," said Enke Enkhjargal, chief representative of the London office of Mongolia's central bank.
Speaking to reporters on the sidelines of an investment conference, Enkhjargal, a former deputy central bank governor, said: "We believe (the yield) will be around 5-6 percent."
Mongolia earlier this year shortlisted Deutsche, Goldman Sachs, HSBC, ING and Morgan Stanley as potential lead underwriters for its debut bond. It had indicated earlier that the issuance could be for $1.2 billion.
The central bank had advised the government to issue a smaller bond, Enkhjargal said, adding: "$1.2 billion is too big."
Enkhjargal also said foreign direct investment (FDI) into the commodity-rich ex-communist country is expected to be $1.4 billion this year, rising to $3 billion in 2011.
…
Mongolia received a ratings upgrade to B+ from Fitch this week, while Standard & Poor's rates it BB-.
Enkhjargal said economic growth next year is seen at 8 percent. Earlier on Wednesday, a senior Mongolian government official told the conference 2010 economic growth was expected at 7.5 percent.
Conference delegates were more bullish. Kevin Bortz, director of natural resources at the European Bank for Reconstruction and Development, told the conference the EBRD saw Mongolian GDP growth at 9 percent next year.
But Enkhjargal said: "We are very conservative at the central bank."
While conference delegates expressed concern at Mongolia's high inflation rate of 11 percent, Enkhjargal said the bank is targeting a single-digit rate in 2011.
Mongolia's currency, the togrog has been appreciating sharply -- up 15 percent this year at 1,245 per dollar. Growth in the economy has been driven by Chinese demand, and the central bank has been acting to smooth volatility, Enkhjargal told the conference, with FX reserves at a record $1.8 billion.
"We do not want to see the togrog changing too much over a short period of time," she added.
Related article: Mongolia 2010 GDP growth seen at 7.5 pct-govt official – November 24, Reuters
Mongolian mining bans could have long term benefits
BEIJING Nov 25 (Reuters) - Mongolia's decision to revoke hundreds of gold mining licenses last week has alarmed investors but the government's efforts to clean up its mining sector could have long term benefits, the head of a foreign fund said.
Mongolia's energy and mining minister Dashdorj Zorigt announced late last week that 254 gold mining licenses would be suspended for violating the country's environmental laws, while another 1,700 licenses would be put under review.
The move came after a series of policy changes over the last year aimed at bringing the booming but still nascent industry under greater supervision and control.
In April, Mongolian president Tsakhia Elbegdorj ordered a halt to the issuance and transfer of mining licenses until parliament passed a new and stricter law.
Small and unqualified miners were the main target of the new rules, Eric Zurrin, chief executive of ResCap, an investment fund active in Mongolia, told Reuters.
"Too many outsiders were trying to pick up licenses in a bit of a lottery and trade, and you know what that can lead to. These licenses need to be properly explored and well thought through," he said.
The gold projects suspended last week were said to contravene the country's new water and forest law, which bans mining activities in water basins and forests.
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Investor Mood Positive at Hard Assets Investment Conference, San Francisco – Erdene Resources Development Corp
Mogi: TSE:ERD shares up 26% on Wednesday, November 24
November 24 (Gold Investing News) --
…
Of the mining companies profiled many had amazing projects in the works with substantial deposits and potential for great growth. One such company, Erdene Resource Development Corp. (TSE:ERD) was on my radar screen. The company owns various projects worldwide; one in particular, the Zuun Mod molybdenum-copper project in Mongolia has potential.
"Containing 215 million pounds of molybdenum in the Measured and Indicated category, grading 0.054% Mo and a further 208Mlbs in the Inferred category grading 0.051% Mo, making it one of the largest undeveloped molybdenum-copper deposits in the Asia region," stated a recent press release.
The potential of this deposit lies with its proximity to China, the largest moly consumer in the world due to its robust steel industry. In addition to the demand from the steel industry, there are reports that China may classify molybdenum as a vital national resource. This classification could come with limits on production, and the creation of a stockpile, increasing the overall demand for the material. The Zuun Mod project is set to start production in 2014.
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Mongolia Renews Commitment to Afghanistan at Lisbon Summit
November 29 (The Global Herald) At the NATO summit in Lisbon, President Elbegdorj of Mongolia renewed his country's commitment to the ongoing operations in Afghanistan with a pledge to send more army engineers, border patrol experts and rescue specialists.
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700 Mongolian soldiers have been on duty in Afghanistan since 2003. At present, two battalions are patrolling near Kabul and in the Northern Afghan city of Faisalabad where they are working in cooperation with German forces. In addition, artillery and helicopter trainers are working with the Afghan military to build capacity ahead of the ISAF withdrawal.
Australia
Share recovery led by the banks
Novemer 29 (AAP) Close The Australian sharemarket recovered strongly in afternoon trade to close 0.4 per cent higher, as concerns about sovereign debt in Europe receded and investors started eyeing riskier assets.
The benchmark S&P/ASX200 rose 20.2 points, or 0.4 per cent, to 4618.5, after earlier falling as low as 4557.3. The broader All Ordinaries Index added 16.5 points, or 0.4 per cent, to 4706.7.
Financials led the turnaround, gaining 1.2 per cent, and health care stocks rose 0.8 per cent, while materials were down 0.2 per cent and gold shares shed 1 per cent.
need2know:
- A$ recovers to 96.46 US cents
- Asian shares flat as investors stay wary
- Gold slips below $US1360 an ounce
- Oil climbs over $US84 a barrel
- Dow futures are 46 points higher at 11,076
The market opened the week lower, due to concerns about European sovereign debt and a negative lead from a shortened Wall Street session, but picked up during afternoon trade.
The gains came from the healthcare and energy sector stocks, while the big four banks also helped the major indices to a higher close.
…
"The mood is not yet bearish and one should see buying come in to arrest the dips," said Chris Kimber, client adviser at Bell Potter Securities.
…
The resources sector was lower, with the smaller players losing more ground than the big miners. BHP Billiton added 4 cents to $43.24 and Rio Tinto lost 20 cents to $83.84, while Fortescue shed 11 cents to $6.54 and Iluka lost six cents to $7.59.
Gold miner Newcrest lost 60 cents to $39.77 as the spot price of gold in Sydney was $US1360.70 per fine ounce, down $US9.80 on Friday's closing price of $US1370.50.
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Baraka Petroleum was the top traded stock by volume, with 165.4 million shares traded for a value of $1.28 million. Baraka shares gained 0.2 of a cent, or 33 per cent, to 0.8 cents.
Preliminary national turnover was 2.35 billion shares, worth $4.65 billion, with 504 stocks trading higher, 596 down and 359 unchanged.
Global
Gov't moves to stabilize energy prices, ease inflation expectations
November 29 (People's Daily Online, China) Thanks to successive measures taken by multiple departments to stabilize prices, the momentum for the nationwide rise in electricity and gas prices has temporarily been eased, and coal prices have been stabilized. The adjustments to refined oil prices will likely be postponed. Industry insiders said that the energy price stabilization has played a positive role in stabilizing the consumer price index (CPI).
The National Development and Reform Committee (NDRC) has successively released circulars requiring local agencies to stabilize prices. The goods and services with government pricing are primarily those that are closely associated with economic development and public welfare, including water, electricity, oil and gas.
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Rio to ramp up 2011 capex, finds more iron ore
* Capex $11 bln in 2011 from $4 bln this year
* Finds 2 bln tonnes more iron ore resources in Pilbara
* Evaluating small and medium-sized M&A opportunities
* Copper output to remain weak 2011, rebound 2012
* Shares down 1.9 pct in London on weaker metals prices
LONDON/SYDNEY, Nov 26 (Reuters) - Miner Rio Tinto (LON:RIO) (ASX:RIO) is to nearly triple capital spending to $11 billion next year as it expands lucrative iron ore mines in Australia, where it has found a further 2 billion tonnes of deposits.
The heavy spending on new mines outlined on Friday shows the Anglo-Australian miner is confident strong Chinese demand will keep metals prices buoyant.
Capex will shoot up from $4 billion in 2010 as Rio seeks to boost iron ore output by more than 50 percent in five years.
Urbanisation in China and other emerging markets will underpin booming demand for metals, but prices are due to be volatile amid global economic uncertainties, Rio said.
"The Chinese economy continues to motor ahead," Chief Executive Tom Albanese told an investors' presentation.
"The long-term picture remains very positive for our businesses, but there remain a number of risks in the mid-to-near term, and for us this points to continued volatility."
Albanese said high metals prices were generating strong cashflow and Rio might use some of this cash for takeovers.
"Of course, that (capex) number excludes any small-to-medium-sized M&A deals that we may choose to execute. We have a number of opportunities being evaluated."
Rio, the world's second-biggest iron ore producer, posted a record first-half profit in August. About 70 percent came from iron ore sales.
Vale to become Brazil's first Hong Kong listing
November 25 (FT) Vale (NYSE:VALE), the world's biggest iron ore miner, has received approval to list on the Hong Kong stock exchange and will next month become the first Brazilian company to be traded in the city.
Brazil's largest company, which is already listed in São Paulo, Paris, and New York, will introduce its shares to Hong Kong in the form of depositary receipts. No new shares will be issued as part of the deal.
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"If Vale's move is successful, it will set a precedent for other companies to follow," said a person close to the deal.
Petrobras, the Brazilian national oil company, is considering issuing depositary receipts in Hong Kong, the Ming Pao newspaper reported this month.
Vale's listing, which is being arranged by JPMorgan, will allow the company to gain direct exposure to Asian capital markets and enable its shares to be traded across multiple timezones.
Analysts reckon that Vale is one of a small number of companies that has both the size and reputation needed to attract a sufficient amount of trading volume across four different exchanges.
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<Mogi & Friends Fund A/C>
16%
Mogi & Friends Fund is a tiny fund of A$21.8K I created with a few friends to put my own (and a few friends') money where my mouth (just mine) is.
Mogi: Fund return is still a bit over 16%. Our 2nd addition to the portfolio is relatively flat and thus affecting the overall return. But with Haranga listing next week, the fund is looking good in the near term.
Mogi
"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
Suite 906, Central Tower
Sukhbaatar District, Ulaanbaatar
Mongolia
CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
