Wednesday, March 30, 2011

[cpsinewswire] [CPSI NewsWire: Xanadu Buys Mongolian Copper Prospect]

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 30, 2010



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March 30 (AAP) Exploration minnow Xanadu Mines Ltd (ASX:XAM) says it has acquired the Mogoin Gol copper prospect, covering 488 square kilometres, in northern Mongolia.

The Mogoin Gol project is 40km northwest of the producing Erdenet deposit, which produces 530,000 tonnes per annum of copper concentrate and delivers it into Russia and China via the Trans Mongolian railway.

"Following extensive due diligence, it is Xanadu's view that the Mogoin Gol project is one of the best untested porphyry copper targets in Mongolia, having been subject to minimal drill testing almost a decade ago," chairman Brian Thornton said in a statement on Wednesday.

The copper market is currently underpinned by demand from China, which is expected to grow by 25 per cent from 6.8 mtpa in 2010 to more than 8.5 mtpa in 2015, Xanadu says.

Link to article

Link to company release



Mar. 28, 2011 (PR Newswire) -- VANCOUVER, March 28 /PRNewswire/ - Gulfside Minerals Ltd. ("Gulfside" or the "Company") (TSXV: GMG) reports that the Private Placement of securities announced on February 28, 2011, of $700,000 non-brokered private placement consisting of 7,000,000 units at a price of $0.10 per unit (the "financing"), has been increased.  The offering will now consist of up to 3,100,000 flow-through units ("FT Units") which carry one half warrant per unit exercisable at $0.15 and 5,100,000 non flow-through  units ("NFT Units"), with one whole warrant per share exercisable at $0.15. The warrants are exercisable  for a period of 12 months following the closing.  Securities issued under the private placement will be subject to a four month hold period.

In connection with the private placement and subject to regulatory approval, the Company may pay finder's fees in accordance with the policies of the TSX Venture Exchange.

Gulfside plans to use the proceeds of the flow-through financing to explore its recently-acquired Northern Treasure and Bryer gold properties, located about 120 km south of Atlin, BC.  Both claim groups are on geological trend from the Inlaw/Trapper Lake group (a joint venture between Ocean Park Ventures Ltd. and Constantine Metal Resources Ltd.)  and 70 km from the Golden Bear mine and mine access road which was developed by Chevron Minerals of Canada.

The proceeds of the non-flow through portion of the financing will be used for general working capital and on its coal interests in Mongolia.

Link to release


Mongolia Growth Group Ltd. Publishes March 2011 Monthly Letter to Shareholders 

Calgary, Alberta CANADA, March 28, 2011 /FSC/ - Mongolia Growth Group Ltd. (YAK - CNSX), is pleased to announce the release of its March 2011 letter to shareholders. 

March 2011 Shareholder Letter 

To The Shareholders Of Mongolia Growth Group Ltd., 

Jordan and I recently spent three weeks in Mongolia setting up infrastructure, investigating opportunities, and negotiating on our first significant transaction. In every way, this trip was a success-particularly as we were able to partner with an outstanding group of individuals for the creation of an insurance company. 

Upon landing in Ulaanbaatar (UB) in early February, the first thing you notice is the cold. I had been mentally prepared, but the human body isn't quite physically prepared for the 100 degree temperature change from Miami to UB. The other thing you notice is just how much economic activity is going on around you. Written accounts cannot convey the feel of a true boomtown.  In UB, people are largely oblivious to the cold-they are focused on commerce and the success of Mongolia. 

Our mandate at Mongolia Growth Group Ltd. (MGG) is simple: find ways to gain leverage to the growth of the Mongolian economy. There are many avenues towards achieving this goal. As we strolled around the downtown of UB, we constantly explored our options and tried to focus our opportunity set. We have a broad mandate, but we cannot do everything-the Mongolian economy is just too diverse. Rather, we want to focus on sectors that are undeveloped and where we can deploy significant quantities of capital in an intelligent manner. Fortunately, we have a roadmap to use in our quest for opportunities. 

As we continue to explore the Mongolian economy, we are constantly struck by how being undercapitalized can hold back business growth. Our desire is to partner with other successful entrepreneurs so that they can grow their businesses more rapidly and invest in the latest equipment and technology to increase productivity. It's good for Mongolia, it's good for the businesses, and hopefully it's good for us as investors. 

Over time, real estate prices are correlated with changes in wealth and disposable income. As the Mongolian economy expands, real estate should be a sector that will take advantage of such trends. While we are open to attractive construction opportunities, our preference is to purchase and rent out existing properties. We see rental yield as a tangible metric in determining the value of a property portfolio. More importantly, existing properties produce cash flow almost immediately after you acquire them. As a young company, we are determined to achieve profitability and reduce funding risk. Unfortunately, we are limited by the number of properties that are currently available for sale at attractive prices. 

It bears repeating that MGG will only be as successful as our Mongolian partners can make it. We feel very confident in the integrity and experience of our insurance partners. I have invested in lots of businesses during my career; I cannot think of an investment that started off with more confidence. I welcome our new friends at UMC Group to MGG and hope that this is the start of a very successful partnership. 

Link to article


Investors’ forum to focus on Dornogobi

March 29 ( Some 300 domestic and foreign organizations have expressed their desire to participate in an investors’ forum in Sainshand of Dornogobi on April 15. Called Development Region Dornogobi, the forum will be focused on development of Dornogobi aimag, construction of the new railway and the Sainshand industrial complex, and infrastructure issue of the southern regions. Participants will also talk about possible investment in heavy industries. 

Link to article


ENK produces 100,000 tons of coking coal

March 29 ( ENK, the first coking chemical complex of Mongolia, has so far produced 100,000 tons of coking coal at its plant in Bayan-Ovoo soum of Umnugobi aimag. Its annual capacity is 300,000 tons of metallurgical coking coal and a million tons of washed coal. ENK has supplied 5% of its output so far to domestic ferrous metal factories and exported the remaining 95% of to China. 

The factory cannot work to full capacity because of shortage of Mongolian specialists.  

Link to article


China may face up to 56 mln T coking coal shortfall -paper

SHANGHAI, March 29 (Reuters) - China, the world's biggest user and producer of coal, may face a shortfall of 56 million tonnes of coking coal this year, the China Securities Journal reported on Tuesday, pushing Chinese steel mills to look further afield to make up the supply gap.

China is expected to produce 513 million tonnes of coking coal, used in steel production, in 2011, but total consumption is expected to reach 569 million tonnes, the paper said, citing forecasts made by top Chinese coal miners and analysts at an industry conference.

Faced with a widening supply gap, Chinese mills are set to boost imports from countries such as Mongolia, Russia and Australia.

However, import growth for the year is expected to fall to around 10 percent, compared with the stellar 37.3 percent growth posted in 2010, said Shanxi Coking Coal Group Ltd General Manager Liu Shengrui.

China imported 47.27 million tonnes of coking coal in 2010, with imports from neighbouring Mongolia surging 278 percent to 15 million tonnes, trailing behind top supplier Australia's 17.4 million tonnes. [ID:nBJL002123]

Global coking prices are forecast to rise strongly overly the first half of this decade, as producers struggle to keep pace with surging demand led by steel makers from China and India.

Link to article


Kiu Hung: Mongolia is not only a good fit for our energy business expansion …

March 28, Kiu Hung Energy Holding Limited (HK:381) --


During the Year, we closely looked into coal mine projects in China and other regions. The Company’s management believes that the substantial proven coal resources in Mongolia is not only a good fit for our energy business expansion strategy but also fulfills the increasing coal importing demand of China. Mongolia is estimated to have huge amount of coal reserves, and the exporting amount of coal products to China is expected to increase sharply due to the increasingly friendly regulations for cross border trading from both sides. Though the lack of infrastructure in Mongolia is one of the reasons that coal reserves have not been well-developed in the past, the continuing attention and geographically advantage of Mongolia is still one of the best options to fulfill the future coal product demands in northern part of China.

Link to release – Page 36


NAR: 2010 Final Results

March 28, North Asia Resources Holdings Limited (HK:61) --


Link to results


Steppe-Ing Out

March 29 (iStockAnalyst) TMM recently travelled to Mongolia and thought it might be worth a post, as it has moved from geopolitical buffer zone between Russia and China and a USAID afterthought to front and center for commodities analysts and a point of focus for the EM crowd. The country now has a couple of large listed equities, including the Mongolian Mining Corporation, Ivanhoe Mines, South Gobi, as well as a number of up and comers, including the much awaited Tavan Tolgoi deposit. With rumors of a sovereign bond, the country might even have a local currency issue (whisper around 8% coupon), which would be a pretty compelling story to the EM set:

Small previously poverty stricken nation with a population of around 2.5mm that will become a combination of the Australian Bowen Basin in coal and Chile in Copper seeks to borrow in its domestic currency with a limited FX intervention policy at a rate slightly inside of the policy rate - 11%.

In a world of people looking for FX carry, appreciation and low sovereign leverage this is a comically easy sell. It is no wonder that the "will they/won't they" and "in what ccy" is a favored talking point among the EM bond manager set.

There are of course the skeptics who look at Mongolia and don't see venture stage Chile with none of the dictatorship legacy and crushing inequality, but instead see Kazakhstan. Kazakhstan has a similarly ample resource endowment (oil, copper, gold, uranium, etc) and yet it managed to go from EM wonder to Coyote ugly in the space of one year. …

One of the drawbacks of having a colorful democracy in a country with relatively low educational attainment is that it is very easy for fiscal policy to become a pro-cyclical disaster zone, when put in the hands of local politicians who, quite literally, were raised in a ger and aren't quite of the quality of the Prime Minister. In this regard Mongolia has not distinguished itself to date. The country required an IMF program as recently as 2009 as FX reserves were depleted in 2008/2009, not by imports but by loose fiscal spending. As part of this program, Mongolia now has a Fiscal Responsibility Law for implementation in 2013 and a stabilization fund for excess mining revenues, though ultimately whether this gets done comes down to the parliament – something which TMM will watch closely as the mooted $500mm sovereign bond issuance comes up.

In the interim it is a fun place to go out, as are most places when people go from grinding poverty to 10%+ p.a. growth in a short time. It tends to make people party like the good times aren't going to ever end – or, alternatively, party while they still can. TMM hope that for Mongolians and investors alike the Mongol Bank and the Parliament learn when and how to take away the punchbowl.

Link to article


ASX plan to boost juniors

March 29 ( THE Australian Securities Exchange is considering extending trading hours and watering down listing rules for smaller companies as part of efforts to encourage more initial public offerings from junior miners and explorers.

But the exchange is likely to resist bringing back the secondary trading board, which specialised in providing a market for small-capitalised stocks, saying there was little support among listed companies for such a venue.

The ASX is eyeing Perth-based mining companies in particular as the booming resource industry offers the best options for growth.

Any changes would mark one of the biggest shake-ups of the ASX's listing rules since anonymous broker trading was introduced seven years ago.

One model the ASX is exploring is similar to Germany's Deutsche Boerse, which offers listed companies a two-tiered structure. One of these, the open market, is designed for mid-cap and small-cap stocks, with cheaper access to the market and lower levels of transparency.

Link to article



Dubai honours projects that help improve quality of life

(Mogi: Awards $30K to Mongolian entrepreneurs)

For the eighth year Dubai Municipality distributed a $30,000 (Dh110,167) prize to 12 of the best projects ongoing worldwide that improve the quality of life of a community.

Dubai, March 30 ( Winners of a best practice award on Tuesday demonstrated that even with limited means, a lot can still be achieved.

For the eighth year Dubai Municipality distributed a $30,000 (Dh110,167) prize to 12 of the best projects ongoing worldwide that improve the quality of life of a community.

Facing worse plastic bag pollution problems than the UAE, an entrepreneur from Mongolia set up a small-scale business collaborating with 30 people to pick up plastic bag waste that had accumulated over 150 hectares, affecting plants and livestock.

Due to population growth and increased consumption the amount of waste in Mongolia is currently 43.2 million tonnes of waste annually of which up to 40 per cent is plastic.

Every year Olonbayar Godon and Munkh-Ochir Enebish from San-Orgu Company in Dharkhan City recycle approximately 250 tonnes of plastic accumulated from bags and waste dumped in the environment.

The raw material produces more than 30 products such as chairs, fences, pens and hard-plastic covers for plumbing wells and railway parts that substitute wood and iron.

Not afraid

"We are not afraid of difficulties. We run the activity with a very small amount of money for five years," said Godon. "At present we keep operating by [manual labour] and hard work."

The company employs 150 people full time and has already achieved the greening of 7.4 hectares after clearing the land of plastic. They took home one of the 12 awards handed out at the Dubai International Awards for Best Practices (DIABP) yesterday by Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance.

Link to article


<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.

Tomorrow is last day of Q1 2011. Q2 will bring a new phase in Mogi & Friends.




·         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.



"Mogi" Munkhdul Badral

Executive Director

CPS International LLC

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Telephone/Fax: +976-11-321326

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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.



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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