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, June 7, 2011 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.037 | -0.003 | 0.037 | 0.039 | 0.040 | 0.040 | 0.035 | 4,353,115 | |
1.460 | 0.000 | 1.405 | 1.470 | 1.395 | 1.460 | 1.390 | 152,069 | |
0.240 | -0.010 | 0.240 | 0.250 | 0.250 | 0.250 | 0.230 | 262,277 | |
0.625 | -0.045 | 0.625 | 0.640 | 0.670 | 0.670 | 0.615 | 1,385,776 | |
0.011 | -0.001 | 0.010 | 0.011 | 0.012 | 0.012 | 0.011 | 4,694,614 | |
0.005 | 0.000 | 0.005 | 0.006 | 0.000 | 0.000 | 0.000 | 0 | |
0.057 | -0.001 | 0.057 | 0.058 | 0.058 | 0.058 | 0.056 | 2,577,214 | |
0.175 | 0.000 | 0.160 | 0.170 | 0.000 | 0.000 | 0.000 | 0 | |
1.220 | -0.010 | 1.200 | 1.235 | 1.220 | 1.230 | 1.170 | 445,009 | |
0.235 | 0.000 | 0.235 | 0.240 | 0.240 | 0.240 | 0.235 | 211,802 | |
0.500 | 0.000 | 0.350 | 0.500 | 0.000 | 0.000 | 0.000 | 0 | |
0.400 | -0.015 | 0.395 | 0.400 | 0.415 | 0.415 | 0.395 | 434,500 | |
22.030 | 0.010 | 22.020 | 22.040 | 22.050 | 22.100 | 21.700 | 1,246,934 | |
79.290 | -0.060 | 79.290 | 79.300 | 79.030 | 79.600 | 78.700 | 1,993,825 | |
42.960 | -0.040 | 42.950 | 42.970 | 42.680 | 43.110 | 42.520 | 13,516,534 | |
Source: asx.com.au
Westhouse bullish on prospects for Petro Matad
June 7 (Proactive Investors UK) Analysts at Westhouse have sounded a very upbeat note on prospects for Mongolia-focused oil group Petro Matad (LON:MATD) thanks to its increasingly successful exploration programme, strong and capable technical team and 'exceptionally large' prospective exploration blocks.
The analysts' highly positive stance on the company follows a visit to Mongolia to assess Petro Matad's operations and management at first hand. The group’s principal asset is a production sharing contract (PSC) over Matad Block XX, a petroleum block with an area of 14,250km² in the far eastern part of Mongolia, near the Chinese border.
Petro has also signed two PSC such contracts, for Bogd Block IV and Ongi Block V, which combined cover approximately 71,000km² in central Mongolia.
The Westhouse analysts - David Hart, Peter Bassett and Andrew Matharu - point out that the company has a very active work programme lined up for the next 6-12 months. In sharp focus will be Block XX, where exploration and appraisal drilling will be complimented by start of testing over the next few months. The company is continuing to make 'rapid progress' with its key DT-5 well on Block XX.
Westhouse reckons that the most likely near-term scenario for the company's drilling operation overall is the hiring of another rig to enable it to drill around 12 wells this year, comprising mainly of exploration wells within Block XX.
Petro Matad has already drilled four wells successfully on Block XX and the next step is to securing decent flow rates so that risks associated with the block’s resource estimates can be reduced.
For the Westhouse analysts, promising as the exploration and development work is, much depends on the quality of the Petro Matad's technical team and management in general. They were not disappointed on this score during their visit, noting that the high quality of Petro's team is "striking" and "stands out immediately".
The management team at Petro includes Rodney Graham as chief operating officer. Graham has an extensive understanding of Mongolian geology, having lived and worked in Mongolia for nine years prior to joining Petro Matad. Then there is exploration manager Jim Coogan who boasts 28 years of experience within the industry, academia and running his own consultancy. Their expertise is complemented by a team of Mongolian geoscientists led by Mr B Dendevchuluun, a geophysicist with over 38 years’ experience.
The analysts note: "The search for, and ultimate development of, oil and gas is, without question, a technically challenging endeavour, but by assembling such a strong team of professionals, Petro Matad has ensured that those efforts are well directed by highly qualified in-house personnel."
Another further positive for the group is that the Blocks it operates are very large relative to, say, a typical North Sea Block. Block XX, at 14,250km2, is the smallest, while Blocks IV and V cover an impressive 71,041km2. In the US, the two blocks are equivalent to roughly the area of New Hampshire, Vermont and New Jersey combined.
Yet Petro Matad has only fully explored a small fraction of the total area under its control. With early-stage exploration activities already producing encouraging results, Westhouse believes the group’s huge acreage position suggests "substantial upside potential".
The analysts conclude that more than anything, their recent visit to Mongolia impressed upon them the significant achievements the company has accomplished to date, operating as it does in a region where the oil and gas industry does not benefit from a mature service sector.
They added: “Petro Matad has set up the first self-contained, professional petroleum exploration team in a country that was more accustomed to fly-in/fly-out consultants and extremely limited local sectorial services. However, rather than resting on its laurels, the company’s ambitions remain undiminished, as demonstrated by its full work schedule involving all facets of exploration and appraisal, from field studies right through to drilling and testing.”
Near term, Westhouse sees the completion of well DT-5 , the start of the next one, DT-6, and beginning of testing as near term catalysts for the stock.
While each of these events stands out, the analysts are “particularly interested” in the outcome of the flow test results as commercial risk is, in their view, weighing unduly on the group’s share price.
At current trading levels for Petro Matad, which are significantly below Westhouse’s target price of 341p, the broker retains its ‘buy’ recommendation for the stock. Mid-morning Petro Matad shares stood unchanged at 168.5p, valuing the company at £310 million.
CONTRACT ON FINAL PRE-PAYMENT SIGNED
June 7, Ulaanbaatar, Mongolia, /MONTSAME/ A contract on transferring a final, third part of the pre-payment was signed Tuesday by S.Bayartsogt, the Minister of Finance, and by Mr. Cameron McRae, president and CEO of Oyu Tolgoi LLC. Thanks to this, a money of 100 million US dollars will be passed to the Mongolian side.
The cabinet has been obliged to make an agreement on the investment deal to take the payment for exploiting mineral resources and a certain part of the excise tax in accordance with a parliamentary resolution. In respect of this, the cabinet established the investment contract in October 6, 2009 with the Rio Tinto International Holdings Ltd, Ivanhoe Mines Ltd Corporation and the Ivanhoe Mines Mongolia Inc LLC, agreeing to take the pre-payment of USD 250 million in several phases.
The first part of the pre-payment--USD 100.0 million--was transferred to the government in October of 2009, the second one-- USD 50.0 million--in April of 2010. The third part equal to USD 150.0 million is given to Mongolia with an interest of 1.59 per cent in accordance with the contract on pre-payment.
Related:
OT Shareholders to Gather on June 8 at Government House – Montsame, June 7
Group fails to determine cause of accident at Oyutolgoi – news.mn, June 7
Ivanhoe CEO: Construction At Oyu Tolgoi 'Ahead Of Schedule'
June 7, NEW YORK -(Dow Jones)- Construction of the Oyu Tolgoi copper mine in Mongolia is well ahead of schedule and revenue from byproducts will substantially offset the cost of production, Ivanhoe Mines Ltd. (IVN, IVN.T) Chief Executive Officer Robert Friedland said Tuesday.
Ivanhoe is building the Oyu Tolgoi copper mine in Mongolia in partnership with Rio Tinto PLC (RIO.LN, RIO) and the Mongolian government. The underground copper mine will have two primary mine shafts, a vast copper concentrator complex and an airport, and production is "ahead of schedule," Friedland told attendees of the Metal Bulletin Global Copper Markets Forum in New York.
Oyu Tolgoi is forecast to have 38 years of mine life with around 81 billion pounds of copper reserves, with analysts projecting that the reserves figure will likely increase as the project develops.
In addition to copper, Oyu Tolgoi will also produce around 3 million ounces of silver each year and substantial amounts molybdenum.
"There is no shortage of ore at Oyu Tolgoi," Friedland said. "By year seven we will produce 1.7 million ounces of gold, and the silver and molybdenum alone will more than cover the cost of production," he said.
The project will have a cash cost of around $35 a metric ton, one of the lowest in the world for greenfield production, he said. The mine is expected to produce about 100,000 metric tons of copper a day.
Rosnefti agrees to supply 35,000 tons of diesel in May (June?)
June 7 (news.mn) The diesel shortage continues but there has been some relief. Minister for Mineral Resources and Energy D.Zorigt has concluded an agreement to import without delay 3,000 tons of diesel from China, while Rosnefti LLC has said it will supply 35,000 tons. Of this, 2,000 tons arrived yesterday.
The Chief of the Mineral Resources and Petroleum Authority, J.Amarsaikhan, has said the organization is seeking other sources from which to import diesel. The recent fuel shortage and price increase has led to some consumer products costing more, and economists warn that the problems may become more acute for the unemployed, the poor and other vulnerable sections.
Solartech Consolidates Shares 20 to 1
June 7, Solartech International Holdings Limited (HK:1166) --
Related: Soyol Samdan Substantial Holder with 9.9%
STOCK EXCHANGE WEEKLY REVIEW
June 6, Ulaanbaatar, Mongolia, /MONTSAME/ Four stock trades were held at Mongolia's Stock Exchange on from May 30 to June 3. In overall, 586.1 thousand shares were sold of 46 joint-stock companies totaling MNT 4.6 billion.
Index TOP-20 was 19060.18 points increasing 499.36 units or 2.4% against the week earlier. The total market capitalization was set at MNT one trillion and 831.1 billion increasing MNT 15.3 billion or 0.8%.
Shares of "Monnab" /31.7%/, "Makh impex" /19.5%/, and "Mogoin gol" /17.3%/ increased, but shares of "Sodot" /27.1%/, "UB BUK" /17.0%/, and "Mon it buligaar" /15.0%/ decreased.
20 stocks closed higher, 18 shares declined and eight shares remained unchanged. Shares of "Sharyn gol" /284.3 thousand/, "Hermes center" /128.6 thousand units/ and "Genco tour bureau" /65.8 thousand units/ were the most actively traded in terms of trading volume and in terms of trading value--"Sharyn gol" (MNT 4.1 billion), "Tavan tolgoi" (MNT 315.9 million), and "Bi Di Sek" (58.0 million).
MPP group favors distribution of MNT1 million as apartment loan
June 7 (news.mn) The MPP group in Parliament yesterday reviewed implementation of the Government program in 2010, proposed changes in this year’s state budget, and outlines of the budget of 2012. The MPs discussed how the election program of 2008 could be fulfilled and favored grant of MNT1 million as apartment loan, of MNT1 million as annual pension to women over 55 and men over 60. The pension allowance would be paid in monthly installments.
They also decided that citizens could use up to MNT1 million of their Human Development Fund allowance to pay off salary, pension and other loans. The remaining amount would be adjusted against the monthly allocation of MNT 21,000 to every citizen.
Tightening Monetary Policy in Mongolia
June 3 (CEIC) CEIC Macro Watch: In two consecutive months the Central Bank of Mongolia (CBM) took serious measures to tighten the monetary policy and tame inflation. On February 23rd, the CBM Board of Directors announced a stark increase of the reserves requirement ratio to 9%, almost doubling the previous value of 5%. About a month later, the policy rate was increased to 11.5%, the second increase in the last 12 months.
Key Components of Monetary Policy in Mongolia
Chart provided by: CEIC Data
Inflation is the main concern in the Mongolian economy. Double-digit annual CPI growth has been the rule in the past year, despite government efforts to contain supply-side inflation by improving the conditions of the food supply in the country in light of the international inflationary pressures on the world market. Most recent surges in inflation seem to be caused by increased domestic demand, resulting from budget expansion, distribution of allowances for citizens, and development of the mining industry. Simultaneously money supply and outstanding loans have been growing at increasing annual rates, reaching 67% and 35%, respectively, in March 2011.
The CBM estimated that inflation would have reached 15-20% in December 2011 if strict monetary policy measures had not been implemented right away. Indeed, the inflation outlook has noticeably improved in the past couple of months. Although outstanding loans and money supply growth rates (M2) have remained high, annual CPI decreased to 8% in March and even fell to 5.5% in April 2011.
Mongolia seen as remaining dominant China import supplier - trader Ronly
* Japan, Korea, India seek alternatives to Australia coal
* More U.S., Canadian, Russian coking coal sold to Asia
* Mongolia seen as remaining dominant China import supplier
By Jackie Cowhig
LONDON, June 7 (Reuters) - Australian coking coal producers risk losing Asian market share to U.S. and Canadian suppliers because of the Australians' quarterly prices which are seen as inflated, Ron Beveridge of Ronly Bulk Trading said on Tuesday.
The shift to quarterly-pricing for coking coal driven by major producers including BHP Billition (BLT.L), Xstrata (XTA.L) and Anglo American (AAL.L) has been unpopular and fiercely resisted by many Asian steel mills, he said, speaking at a Navigate shipping conference.
"Never a day goes by you don't hear of somebody who's had a fight with a major Australian coal producer and told them what they can do with their coal and their prices," Beveridge said.
"$315 a tonne was recently paid by a European mill and rejected by Asian buyers as too high," he said.
Japanese, Korean and Indian coking coal buyers were struggling to diversify from Australian coal, to find cheaper supply and avoid quarterly pricing, he said.
The disastrous floods in Australia's Queensland area at the start of the year slashed coal exports and prompted Asian mills to scour the globe for alternative supply. [ID:nL3E7EV482]
U.S., Canadian, Russian and Mongolian suppliers moved to fill the supply gap to Europe and Asia and have not insisted on quarterly prices, Beveridge said.
"We're seeing a big shift from Australian to U.S. coal and I sense there could be a head-on clash in the next two or three months as the Australians are losing tonnage," he said.
The surge in prices which followed the Queensland floods prompted the Chinese to pull out and take domestic and Mongolian coal instead of Australian, he said.
Once the Australian mines reach full output again at the end of August, producers there may find themselves with tonnes which are hard to sell, particularly if they still insist on quarterly prices, he added. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
India's growing coal imports: link.reuters.com/sej97p
Analysis of China's coal appetite [ID:nN12121732]
TABLE-China's April coal imports and exports [ID:nB9E7FL00E]
FACTBOX-U.S. coal export capacity proposed, existing [ID:nN03147173] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
MONGOLIA SUPPLY SURGES TO CHINA
China still depends on its own vast, domestic coal resources but will import when the magical figure of $225 a tonne is reached for coking coal and the arbitrage window opens, Beveridge said.
But Mongolia has been eroding Australia's share of Chinese imports for the past year, moving coal across the border by truck.
"Today Mongolia is the dominant supplier of imported coking coal into China and they will continue to dominate unless the Australians change their pricing," he said.
In Q1 China took 36 percent of its coking coal imports from Mongolia compared with 26 percent from Australia.
"They can't cut Australia out of the mix but they can reduce dependence," Beveridge said.
Investors Salivating Over Mongolian Energy Resources
June 7 (oilprice.com) Sometime in the next 12 months, an energy IPO offering in distant Mongolia already has foreign investors salivating.
The darling of the international energy community is coal company Erdenes-Tavan Tolgoi ("Five Hills") Ltd., popularly known as TT, which has yet to begin operations.
To give an idea of the potential foreign interest, analysts believe that the IPO will be handled by Goldman Sachs Group Inc. and Deutsche Bank AG.
What is TT bringing to the market that has caused such interest? A massive deposit located in the east Tsankhi area of the Gobi desert and estimated to hold over 6.4 billion metric tons of coking coal, the world's biggest untapped deposit of its kind.
Mongolia’s government is currently selecting an operator for the massive deposit and is expected to be a large, experienced foreign mining company. Heightening investor interest was a successful public offering last fall in the autumn of 2010 by Mongolian Mining Corp., Mongolia's largest privately held domestic producer and exporter of coking coal, whose Ukhaa Khudag (UHG) mine is within the Tavan Tolgoi coal formation in the southern Gobi. Mongolian Mining Corp.’s IPO was floated on the Hong Kong Stock Exchange and raised $651 million.
In contrast, analysts are predicting that the TT IPO could raise as much as $10 billion.
What makes the TT IPO unique is that the Mongolian government has just given each citizen 538 shares in the Erdenes-Tavan Tolgoi IPO. If the IPO hits its anticipated $10 billion, each Mongolian shares would be worth about $360. The government stock giveaway totaled 1.5 billion shares, equal to 10% of TT and reserved another 1.5 billion TT shares for thousands of Mongolian business enterprises. Besides the 20 percent handed out to local enterprises and citizens, the government aims to retain 50 percent of TT, with the remaining 30 percent to be listed on an overseas stock exchange.
The TT stock giveaway is an integral part of a governmental effort to convince its citizens that its decision to pursue large-scale mining in Mongolia will have a direct bearing on their well-being, following several earlier contentious mining deals.
Mongolians complained bitterly about the arrangements surrounding the $6 billion Oyu Tolgoi project, jointly owned by Canada’s Ivanhoe Mines , Rio Tinto and the Mongolian government, which will be the world's biggest copper mine outside Chile once full operation starts in 2013.
Underwriting Mongolia’s mining boom, two years ago the Ulsyn Ikh Khural (State Great Hural, or Parliament) finally repealed the 68 percent windfall profit tax on foreign mining operations, which came into effect in January, setting the stage for massive foreign investment.
Even Russia has gotten into the act. Earlier this month, Mongolian President Tsakhiagiin Elbegdorj visited Moscow and met with Russian President Dmitrii Medvedev, who commented on rising bilateral trade possibilities, “We need new powerful projects such as nuclear projects or Tavan-Tolgoi, which will promote bilateral cooperation.”
Besides coal, copper and gold, Mongolia has massive deposits of other materials the world desires, including uranium and rare earth elements (REEs.) As these deposits are developed, analysts predict the economy will flourish, with the International Monetary Fund predicting that Mongolia’s annual economic growth may surge to 23 percent in 2013 as Oyu Tolgoi and other projects begin production.
With energy-hungry China next door, a Mongolian energy or mining investment is looking like one of the global economy’s more certain bets, and in the case of TT, one doesn’t need the resources of a Goldman Sachs to buy in – yet.
PRIME MINISTER TO VISIT CHINA
June 7, Ulaanbaatar, Mongolia, /MONTSAME/ The Prime Minister of Mongolia, S.Batbold is going to leave to China for two day visit in the middle of this month.
The date of the visit is to be announced by the two countries' governments.
Within the visit, the sides will aim to elevate their relationship into a strategic partnership level, and determine a purpose of 500 million US dollars soft loan's agreement from China.
As supposed, rapidly developing in the last 20 years Mongolia-China relations in many sectors, especially in economic sphere, may give the two sides a chance to be mutually beneficial.
Prior to the visit the Premier intends to visit Hong Kong, special administrative region of China.
"TEA ROAD" PROJECT IS TO IMPLEMENT
June 7, Ulaanbaatar, Mongolia, /MONTSAME/ International meeting on a “Tea road” project has ran. The project will be co-implemented by Tourism department of Nature environment ministry of Mongolia, Tourism bureau of Chinese Inner Mongolia autonomous region and national tourism agency of Russia's Buryatia.
Present at the meeting that took place June 7 were the Buryat delegation headed by the agency's leader L.Maksanova, and the Chinese headed by vice director of the bureau. The three sides have discussed the “Tea road” project's basic research and route, signed a memorandum on starting realizing the project within this September.
The tourism Tea road is supposed to cross the three countries' territories allowing each of them to advertise related products.
An agreement to launch the projet was established in 2009, a year later a “Winter tea trip” tour was organized along the traditional tea route on caravan, horse carts and dog-drawn sledges from China to Siberia passing Mongolia and trading tea products.
Works have started to research Mongolia's participation, seek archive materials, create the route, develop Mongolia's tea market and production, and to advertise tea culture.
THREE COUNTRIES` FORUM TO RUN IN CHINA
June 7, Ulaanbaatar, Mongolia, /MONTSAME/ China, Mongolia and Russia's economic, trade and cooperation forum is to run August 26-30 in Erlian of China. About it was sounded by a delegation of the Chinese Inner Mongolia autonomous region at a meeting with a vice mayor of Ulaanbaatar city Tuesday.
The Chinese have invited the Mongolian side to this forum.
At the action themed "Cooperation, joint development, joint profit”, the three countries are supposed to show their goods at a trade fair, to introduce trade and collaboration projects, to run an economic and trade forum.
Thuraya sponsors horse expedition in Mongolia
June 7 (Telecompaper) Thuraya is sponsoring a horse expedition in Mongolia later this month, embarking on a three-week anthropological journey.
The 18 team members, coming primarily from the UAE and Europe, will be studying globalisation effects on the lives of indigenous tribes in North-East Asia.
Thuraya, an international mobile satellite services operator, will be the telecom sponsor of this expedition team. The team will be using the Thuraya XT satellite handheld phone, as its main solution for telecommunications throughout the journey.
Thuraya provides ubiquitous coverage over Mongolia, including the most remote regions. As the horse expedition will be traveling to areas close to the Russian border they are ensured network availability through the Thuraya-3 network which covers the Asia Pacific region.
A Bastion of Classical Repertory on the Asian Steppe
June 7 (NYT) ULAN BATOR, MONGOLIA — The Mongolian State Academic Theater of Opera and Ballet is a pillared, pink, neoclassical building that stands catty-corner to Parliament, with its massive statue of Genghis Khan, and opposite the stock market. Its prime location in the political and economic heart of this capital indicates the unique status occupied by Western classical music in a long-nomadic nation better known for traditional music forms like hoomii overtone singing and the horse-head fiddle.
“Mongolia was a satellite and the mission of a satellite country was to develop the classical arts,” said B. Sergelen, the dynamic, Soviet-trained ballerina who is director of the State Academic Theater. “It was symbolic.” (Mongolians do not really use surnames, and their patronymics are usually abbreviated to an initial.) From the 1950s on, hundreds of Mongolians went to the U.S.S.R. to train as musicians, composers, singers, dancers and musicologists. And musicians from the Soviet Union moved to Mongolia to help establish conservatories and theaters.
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<Mogi & Friends Fund A/C>
Historic +12.9%, Qtd -35.9%
Mogi & Friends Fund is a tiny fund of A$23K I created in late September with a few friends to put my own (and a few friends’) money where my mouth (just mine) is.
…
Mogi
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"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
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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 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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