Thursday, March 3, 2011

[cpsinewswire] [CPSI NewsWire, Thursday, March 3, 2011]

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 or +976-99996779.

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Close: Mongolia Related ASX Listed Companies, March 3, 2010 



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Mongolia Plans to Raise $500 Million in First Dollar Bond Sale

March 3 (Bloomberg) -- Mongolia is planning its first sale of sovereign bonds, seeking some $500 million, to help companies from the resource-rich nation located between China and Russia raise funds from credit markets.

We’re looking at an issuance of inaugural sovereign bonds in order to set up a benchmark and open up a window for private companies to go and raise money,” Vice Minister of Finance, Ganhuyag Chuluun Hutagt, said yesterday in an interview in Ulan Bator. The sale will “probably” take place this year, pending parliament’s approval.

Mongolia also wants to sell domestic currency denominated bonds this year to “soak up extra liquidity” in the banking sector that amounts to about 1.5 trillion tugrik ($1.2 billion), Hutagt said, adding the sale would fight currency appreciation pressure arising from soaring commodity exports.

The bond sale would mark a turnaround from 2010 when Mongolia scaled back and then dumped plans to borrow $1.2 billion abroad to survive the global economic slump. The plans have been revived as gains in the tugrik trim returns from rising copper and coal prices, Mongolia’s biggest exports, and the nation faces a 10 percent budget deficit.

The tugrik has gained by 15.4 percent against the dollar since Jan. 1 last year and 19.2 percent versus the euro.

The currency’s climb endangers domestic industries outside of mining, such as cashmere production and agriculture, said Stephen Kreppel, who was charged by the Mongolian government this year to start a task force to help promote the nation’s non-resource-based industries abroad.

Tugrik Rising

We need to be cautious because of the pressure on the tugrik” due to rising foreign direct investment and revenue from commodity exports, Hutagt said. “To find ways to mitigate that risk the government will issue tugrik-denominated bonds locally. Investors are also interested.”

Mongolia is trying to stop inflation from exceeding 10 percent this year as the government raises investment in infrastructure and seeks to meet election promises of four years ago to transfer more wealth to citizens. The budget deficit is expected to be 10 percent this year, Hutagt said.

Inflation may run to 20 percent by the year’s end, hurting private business and strengthening the tugrik, according to a Feb. 17 report by the International Monetary Fund, which lent money to Mongolia last year. Economic growth is forecast at 10 percent this year, from 6.1 percent last year, on a rapid increase in coal production, the IMF said, noting that one-third of Mongolians live below the poverty line.

Oyu Tolgoi

Mongolia is rated B1 by Moody’s Investors Service, four levels below investment grade and on par with Fiji and Papua New Guinea. Standard & Poor’s rates the nation BB-, the third- highest non-investment ranking.

Oyu Tolgoi, a copper and gold mine being developed by Rio Tinto Group with Ivanhoe Mines Ltd. and the Mongolian government, will account for 30 percent of the country’s gross domestic product when fully operational, according to a presentation by the mine development company. Oyu Tolgoi will reach full capacity in 2020, the company said in the presentation distributed at a forum in Ulan Bator this week.

Erdenes Tavan Tolgoi, the state-run company developing half of the nation’s biggest coal field, plans to start mining the fuel this year and may produce about 1 million metric tons, Lkhagva Ganbat, a company board member, said yesterday. Annual output may reach 15 million tons in three years, he said.

Sovereign Wealth Fund

Until Mongolia adds a rail link to the Tavan Tolgoi field, which is estimated to hold 6.4 billion tons of coal used to make steel and burn in power stations, transportation will be done by trucks, Ganbat said.

Output from the projects could push the Mongolian tugrik to appreciate as much as 10-fold, a factor the country must mitigate with a sovereign wealth fund sterilizing foreign currency denominated commodity revenue, Hutagt said.

It’s not a ‘we’d like to,’ we need to’’ create the sovereign wealth fund, Hutagt said. “To manage the economy, we need to steer the economy, we need to be in control

The finance ministry, central bank, financial regulator, and development and innovation committee are engaged in preparing the framework for the sovereign fund, Hutagt said, without giving a deadline for when it will be complete. Finance Minister Sangajav Bayartsogt said in September 2009 that such a fund would be set up.

Link to article


Mongolia's Challenges: Inflation, Currency Flows

March 3 (WSJ) ULAN BATOR, Mongolia—Surging inflation and interest in trading the nation's currency, the togrog, are key challenges facing the Bank of Mongolia, a top central banker said Thursday.

The economic costs of inflation—"our biggest enemy"—are well understood by the central bank, said Deputy Gov. N. Zoljargal.

In an interview after speaking on a panel here, he said a primary central-bank mission is to manage confidence in the currency. As the profile of the togrog rises with traders, he said, the policy is "don't fight the trend," but ensure it happens smoothly.

The togrog was among the world's strongest currencies in 2010, gaining as the economy rebounded from the global financial crisis and amid expectations copper and coal mining will sustain the trend.

Speaking at the same conference, Mongolia President Ts. Elbegdorj said the government's job is to ensure the mine sector creates an economic foundation, including creating employment. He said the government is considering new mining regulations, but wasn't specific.

The International Monetary Fund mission chief in Mongolia, Steven Barnett, who spoke on the same panel as the central banker, said the flexibility of the currency system is acting like a shock absorber and is "working very, very well."

Mr. Barnett, however, reiterated the IMF estimate that inflation is heading toward 20% without more fiscal restraint.

The central-bank deputy said intervention by the Bank of Mongolia in the currency market has been almost nonexistent this year, as the business community grew to trust the policy would be aimed to smooth the currency appreciation.

"The market takes you to the wrong direction when they don't trust you," he said.

Mr. Zoljargal said monthly currency-market flows, about $400 million early in 2010, surged past $1 billion by August and hit $1.5 billion by year-end.

"To manage it is an art, believe me," he said.

He said the flows remain high but there has been less upward pressure on the currency.

He put foreign-exchange reserves at $2.3 billion.

Link to article


Meritus Intersects Two New Gold Mineralized Horizons at Gutain Davaa

Mar. 2, 2011 ( -- Vancouver, B.C.: Meritus Minerals Ltd. (TSXV:MER) (OOTC:MERMF) (MML)(TSX-V - MER) advises that it has received assay results from the first six holes in the recently completed 2,500m winter drilling program.

Hole TSD042 intersected 18.00m of 1.47g Au/tonne, which includes 2.00m of 7.35g Au/tonne. Hole TSD043 intersected four significantly mineralized horizons between 92.00 and 198.00m down hole. The best of these is 6.00m of 2.17g Au/tonne and includes two zones, each 0.30m thick that assayed 12.25 and 15.15g Au/tonne respectively.

These results are considered most encouraging as they demonstrate that:

i)              Gold mineralization, including high grade zones, extends over a vertical range of at least 215 metres (from RL1610 down to RL1395);

ii)             The persistence of high grade zones within mineralized horizons; and

Processing the core from the remaining 15 holes completed in the program is continuing in a new core cutting facility established in Ulaan Baatar.

Because most core is very strongly silicified, and therefore very hard, progress is slow. It is unlikely that assaying of all core from these holes will be completed before mid April.

Holes TSD038 and TSD039, drilled on the same section 280 metres south of the main mineralized zone, both intersected a barren unmineralized sequence of meta-sediments. Holes TSD040 and TSD041 drilled from the same site southeast of the main mineralized zone failed to intersect significant mineralization



Link to release


Xanadu Mines Half Year Financial Report, December 2010

March 3, Xanadu Mines Ltd. (ASX:XAM) –

Link to report


Leyshon Resources Half Year Financial Report, December 2010

March 3, Leyshon Resources Ltd. (ASX:LRL) –

Link to report


Prophecy Appoints Key Management Personnel

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2011) - Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) is pleased to announce that it has made the following senior appointments:

Paul F. Venter: VP Energy Operations. Ulaan Baatar and London

Mr. Venter oversees Mongolia mining and power operations for the Company.

Christiaan H.B. (Ronnie) Van Eeden: VP Mining Operations. Ulaan Baatar

Mr. Van Eeden is in charge of Mongolia mining operations and coal to liquids technology.

Enkbaatar Ochirbal: VP Mongolia Country Manager. Ulaan Baatar

Mr. Ochirbal liaises with government on statutory and regulatory framework for both mining and energy operations.

Mr. Ochirbal is a Mongolian national, who prior to joining Red Hill Energy Inc. (now Prophecy Resource Corp.) in 2005 was a Senior Manager with MineInfo LLC, one of Mongolia's leading minerals and consulting companies. Prior to entering the mining sector, he spent over 16 years in various managerial positions in Mongolia's financial and banking sectors. He is a former Department Head for the Mongolian Stock Exchange and Securities Commission, and former President of MS Invest LLC - the first Investment Fund in Mongolia in addition to being the former CEO of the Capitron bank. Mr. Ochirbal holds a Commerce degree from the Mining & Economics Institute, Ukraine, an MBA from the Mongol Business University, Mongolia in addition to studying at the University of Hull, UK and Boston University. He is fluent in Mongolian, Russian, English and Czech languages.

Irina Plavutska, CGA: Interim CFO. Vancouver and Ulaan Baatar

Joseph W. Li, CGA: General Manager and Corporate Secretary. Vancouver

Link to release


GTSO President to Meet With Mongolian Embassy Staff Today in D.C.

SAN JOSE, Calif.--(BUSINESS WIRE)--Green Technology Solutions (PinkSheets:GTSO) President and CEO John Shearer will meet today with a commercial attaché at the Embassy of Mongolia in Washington, D.C., to coordinate and expedite new rare earth exports from the developing Asian nation.

Shearer is scheduled to meet with the attaché at 3 p.m. EST. He said on Tuesday that he looked forward to presenting the joint venture’s plans to bring jobs and economic development to Mongolia.

It will be a true privilege to express our enthusiasm for developing rare earth projects in Mongolia to embassy officials in person,” Shearer said. “I am very pleased to discuss any potential assistance they might be able to provide.”

Link to release


Governance Key in Unlocking Mongolia’s Massive Wealth

The world’s newest mineral-rich investment hotspot has surprises up its sleeves

Mar. 3 ( – Governance was the main theme at the Mongolian Economic Forum being held in Ulaan Baatar, as the country begins to come to terms with its newfound status as a major global player in critical resources.

The country, which only overthrew the heavily Soviet-influenced Mongolian People’s Republic in 1990, became a democracy soon afterwards and has sometimes struggled with the transition from decades of mismanagement to its new status as a resource rich state sandwiched between two superpowers – China and Russia. Yet as an increasing volume of massive mineral reserves – ranging from massive oil, coal and iron ore deposits to the world’s largest copper, rare earths and uranium reserves – the country is undergoing a transition that could either be a great success story or lead it to the alternative national path, trodden by other nations, of its natural wealth becoming a curse.

The event, an NGO-sponsored platform inaugurated last year, has attracted major players such as Peabody, Rio Tinto, TDB, Goldman Sachs, Tenger, the IFC among other international organisations (I attend in my regional capacity with the UNDP), foreign governments and related trade, investment and commercial organisations, in addition to the highest office of the Mongolian government. It is intended not as a showcase, but as a genuine and critical examination of where and how Mongolia should be developing its newfound, and extraordinary wealth. For a democratic nation of just 2.5 million people, this has major implications.

First up, the good news. Coming from China, where when the government talks, everyone else listens and questions are largely brushed aside as irrelevant, the Mongolian plenary session included Prime Minister H.E. Batbold, a host of Cabinet officials, and the mayor of Ulaan Baatar. So far, so familiar. Unlike China, Mongolia being a democracy, the moderator was the outspoken, U.S. educated, pro-reform and anti-corruption lawyer, Jargalsaikhan. Being democratic, Mongolia certainly knows how to keep its politicians on their toes as awkward questions concerning government policies and performance were asked, including of the PM. This did not strike me as a country about to fall into cronyism anytime soon. When the somewhat hapless mayor of Ulaan Baatar – a city possessing the largest amount of Mongolia’s academic and institutional resources, and over 50 percent of the national population – was confronted with a litany of problems ranging from pollution to corruption and lack of public services, and then reminded his was not actually an elected position, sparks were going to fly, and the forum did not disappoint.

Chris Devonshire-Ellis is the principal of Dezan Shira & Associates, Asia’s largest independent foreign direct consultancy practice with 17 offices throughout Asia. The firm specializes in foreign direct investment due diligence, investment law, tax and related matters. He is also the vice chairman of the business advisory council for the Greater Tumen Initiative, a UNDP body responsible for North China, Mongolia, Eastern Russia, North Korea, and South Korea with Japan as an observer nation. Chris may be contacted at for advice about investing in Mongolia and the region.

Link to Op-ed


<Mogi & Friends Fund A/C>


Mogi & Friends Fund is a tiny fund of A$20.8K I created in late September with a few friends to put my own (and a few friends’) money where my mouth (just mine) is.




·         I personally and through my “Mogi & Friends Fund” hold 75,000 HAR shares in aggregate.

·         Jason Peterson, CPS Securities Director, holds shares (approx. 6,500,000) and options (1,000,000) in HAR.

·         CPS holds 500,000 options in HAR for corporate advice provided to HAR – Jason Peterson is a 33% shareholder in CPS.

·         CPS and CPSI directors and employees hold shares in HAR and may buy and sell these shares as and when they see fit.

·         CPS has received an IPO management fee of $250,000 and a 5% fee for any funds placed to its clients under the prospectus.

·         HAR has paid for Jason Peterson’s travel and accommodation expenses to and in Mongolia – this must be disclosed as a soft dollar commission.

·         Please refer to the prospectus for further disclosures.



"Mogi" Munkhdul Badral

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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 or +976-99996779.



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