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 +976-9999-6779.
(Mogi: Due to problems with mail server, format was slightly distorted. My sincere apologies)
Mongolian Mining Plans $1 Billion IPO
August 27 (WSJ) HONG KONG—Mongolian Mining Corp., a coking coal producer in Mongolia, has received approval for an up to $1 billion initial public offering in Hong Kong next month, people familiar with the deal said Friday.
The company, previously known as Energy Resources, plans to list up to 25% of its enlarged capital, the people said. It will be the first Hong Kong IPO by a company based in Mongolia. SouthGobi Energy Resources Ltd., the largest coal producer in Mongolia in terms of export sales, raised $436.3 million from its Hong Kong IPO, but its headquarters is in Canada.
Pre-marketing for Mongolian Mining's IPO will start in the middle of next week, the people said. The roadshow will begin mid-September, with the company's listing on the Hong Kong stock exchange set for early October.
J.P. Morgan Chase & Co. and Citigroup Inc. are bookrunners on the deal.
Mongolian Mining couldn't immediately be reached for comment.
The company plans to build a privately owned railway directly from the mine to China at a cost of approximately $700 million, people familiar with the plan said earlier . According to them, the company has been discussing financing with the European Bank for Reconstruction and Development and the Asian Development Bank, among others.
Mongolian Mining's Ukhaa Khudag mine is roughly 245 kilometers from the Chinese border.
Landlocked Mongolia's largely untapped mineral and energy resources are generating a lot of interest from investors, particularly since the government signed in October a landmark $4 billion deal with Rio Tinto PLC and Ivanhoe Mines Ltd. to develop Oyu Tolgoi, a giant gold-and-copper deposit in the Gobi Desert. Mongolia's proximity to China, a major customer for its iron ore, copper, coal and other commodities, adds to its appeal.
The Mongolian government has announced plans to list various assets. Earlier this year, Prime Minister Sukbaatar Batbold said the government plans to list Tavan Tolgoi, a large coking coal mining project, on the Mongolian stock exchange.
Related articles:
Bloomberg article here
Reuters article here
NYT article sourcing Reuters here
PM visits uranium exploration sites
August 28 (news.mn) During his tour of the Gobi provinces, Prime Minister S.Batbold visited sites in Dornogobi where Areva is conducting uranium exploration operations. The French State-owned company has been working as Kojegobi in Mongolia since 1997 and operates in Dornogobi and Sukhbaatar provinces. It hopes to start producing “yellow powder” from uranium in 2015.
Company officials explained their activities to the Prime Minister, who stressed the need to work transparently and in close cooperation with local citizens. The company told him that they had organized two meetings, in Dornogobi and Zuunbayan, to give information to the people. They also said Mongolians are being trained in Kazakhstan and France to fill jobs that will be available soon. Areva is also giving assistance to local health and education programs.
Batbold asked the company to cooperate with the Nuclear Energy Agency to produce value added items.
Mongolian Cabinet holds meeting in Gobi desert
August 29 (AP) GASHUUNII KHOOLOI, Mongolia — Top Mongolian officials donned dark green baseball caps reading "Save our planet" and set up chairs and tables in the sands of the Gobi desert for a Cabinet meeting aimed at drawing attention to climate change.
The meeting of 12 government ministers was held in scorching heat Friday in Gashuunii Khooloi, a sandy valley in South Gobi province, about 415 miles (670
kilometers) south of Ulan-Bator, the country's capital.
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The site for the meeting was chosen because parts of it used to be arable land, said Badarch, head of social policy for South Gobi province, who like some Mongolians uses only one name.
"Five years ago, there used to grow many edible plants in this valley and there were fewer sand dunes. Now look here," he said. "The valley is completely covered with sand. The sand dunes are moving and taking more space each year."
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Related article (includes video):
Mongolia holds cabinet meeting in middle of the desert
August 28 (NECN/CNN) - Members of the Mongolian cabinet recently held their meeting in a unique place.
STOCK EXCHANGE WEEKLY REVIEW
Ulaanbaatar, Mongolia, /MONTSAME/ Five stock trades were held at Mongolia's Stock Exchange (MSE) during the week from August 23 to August 27. In overall, 527.1 thousand shares of 36 JSCs were sold totaling 270.8 million MNT trade.
Index top-20 was 11785.33 points increasing by 912.83 units, or 8.4%, against the week earlier. The total market capitalization was set at MNT 969.7 billion increasing by MNT 72.8 billion or 8.1%.
Shares of "Sharyn gol" JSC (47.3%), "Baganuur" (29.5%) and "Aduunchuluun" (18.0%) were increased, but, "Buligaar" (23.5%), "Material impex" (15.0%), and "Mongol shir" (14.6%) JSCs were decreased at the MSE. A total of 36 shares were sold. Of them, rate of 22 shares were increased, rate of eight shares were decreased, and rate of six shares were stable.
Shares of "Hermes center" JSC (204.3 thousand units), "Remikon" (133.2 thousand units) and "Khokh gan" (81.3 thousand units) JSCs were actively traded in terms of trading volume, but in terms of trading value "Sharyn gol" (MNT 163.3 million), "APU" (MNT 26.7 million) and "Baganuur" (MNT 21.2 million).
Northeast Asian Economic Forum Opens in Ulaanbaatar
August 27 (UB Post) The 19th annual conference of Northeast Asia Economic Forum has opened at the Parliament Building in Ulaanbaatar City.
With more than 100 distinguished participants and experts from Mongolia, Russia, China, Korea, Japan and others, the Forum will cover a broad, yet highly relevant, scope of topics pertinent to Northeast Asian economic cooperation and development, including the cross-border regional cooperation, energy and green growth cooperation, transportation and logistics cooperation, financial cooperation in Northeast Asia, and mining and mineral development in Northeast Asia.
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U.S. Helps Mongolia Prepare for Radiological Incident
August 26 (Global Security Newswire) The U.S. National Nuclear Security Administration said today it had provided training to Mongolian authorities on the response to a potential terrorist strike against a site that holds nuclear or radiological materials (see GSN, Nov. 14, 2008).
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Another NNSA program, Second Line of Defense, has deployed radiation detectors at 10 Mongolian border installations to deter smuggling of nuclear and other radioactive substances. Work on another four sites has begun or is being prepared.
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Australia
| Close: Shares of Mongolia Related ASX Listed Companies, August 27, 2010 | ||||||||
| 0.875 | -0.020 | 0.875 | 0.880 | 0.890 | 0.890 | 0.875 | 125,214 | |
| 0.014 | 0.000 | 0.013 | 0.015 | 0.013 | 0.015 | 0.013 | 636,345 | |
| 0.185 | 0.000 | 0.185 | 0.190 | 0.185 | 0.185 | 0.185 | 128,870 | |
| 0.070 | 0.000 | 0.070 | 0.075 | 0.072 | 0.072 | 0.070 | 527,000 | |
| 0.130 | -0.010 | 0.120 | 0.145 | 0.140 | 0.140 | 0.130 | 82,500 | |
| 30.560 | 0.560 | 30.400 | 30.720 | 29.820 | 30.880 | 29.820 | 802,314 | |
| 69.300 | -0.300 | 69.100 | 69.300 | 68.990 | 69.330 | 68.580 | 4,893,823 | |
| 37.300 | -0.090 | 37.260 | 37.300 | 37.070 | 37.360 | 36.940 | 26,611,385 | |
Source: asx.com.au
Shares stage comeback amid US gloom
August 27 (AAP) Close, Australian shares closed in the black on Friday on the back of a rise in mid-tier companies, but the late comeback could not prevent a third consecutive weekly loss.
At the close, the benchmark S&P/ASX200 index was 14.1 points higher, or 0.3 per cent, at 4370.1, while the broader All Ordinaries index gained 14.7 points, or 0.3 per cent, to 4404.1.
For the week, the market lost 1.4 per cent, its third straight negative week after a string of weak US figures raised fears about a fresh slide into recession.
need2know:
- The dollar slips to 88.65 US cents
- Gold inches up to $US1237
- Oil hovers around $US73
- Dow futures are 25 points higher at 9992
…
Link to article
Miner turns in solid-gold result, despite a year of big spending
August 28 (The Age) HIGH gold prices have helped Lihir Gold turn a $US300.9 million loss into a $US87.1 million ($A98.1 million) profit for the first half of the year in what will be its swansong result before its $9.5 billion merger with Newcrest Mining takes effect on Monday.
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Global
GLOBAL MARKETS-Bargain hunters lift shares after Bernanke, Intel
* Global shares gyrate on Bernanke and Intel statements
* Bernanke voices concerns for economy, ready to act
* Intel warns on Q3 revenue, shortfall of $1 bln possible
* Euro rises but yen drops on intervention concerns
NEW YORK, Aug 27 (Reuters) - Bargain hunters pulled global stocks out of a tailspin on Friday after Federal Reserve Chairman Ben Bernanke said the central bank was ready to counter a softening recovery and Intel warned on its revenues.
Bernanke's comments at the Jackson Hole symposium of central bankers and Intel's warning triggered a sharp sell-off in global shares, and investors piled into the U.S. dollar for safety, causing oil and gold prices to drop.
But those losses proved short-lived.
The accumulation of gloomy economic data and the market losses for much of August proved too tempting for short-covering and investors looking to pick up assets on the cheap.
Even U.S. economic data showing a sharp downward revision in second quarter gross domestic product was less gloomy than economists expected and underpinned share prices in Europe as well as on Wall Street.
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In mid-day trade, the Dow Jones industrial average .DJI rose 105.65 points, or 1.06 percent, at 10,091.46. The Standard & Poor's 500 Index .SPX gained 10.47 points, or 1.00 percent, at 1,057.69. The Nasdaq Composite Index .IXIC climbed 19.50 points, or 0.92 percent, at 2,138.19
...
The MSCI All-Country World equity index .MIWD00000PUS rose 0.72 percent, off a seven-week low hit earlier this week. The index is down 3.3 percent so far in August. The Thomson Reuters global stock index .TRXFLDGLPU gained 0.77 percent. Emerging stocks .MSCIEF climbed 1.46 percent.
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Link to article
Asian Stocks Post Weekly Decline as Growth Concerns Intensify
Aug. 28 (Bloomberg) -- Asian stocks slumped, dragging the MSCI Asia Pacific Index to its second drop in three weeks, as a record plunge in U.S. home sales and slowing export growth in Japan added to evidence the global recovery is faltering.
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“The U.S. economy now seems to be weaker than markets expected,” said Stephen Halmarick, who helps manage about $135 billion as head of investment markets research at Colonial First State Global Asset Management in Sydney. “Investors are worried growth will fade sharply and that an improvement in company profits will reverse.”
The MSCI Asia Pacific Index dropped 1.2 percent to 116.82 this week, following last week’s 0.4 percent gain. The index has slumped about 9.5 percent from its high this year on April 15 as Europe’s debt crisis, China’s measures to curb property-price inflation and disappointing economic reports in the U.S. fueled concern global growth may stall.
Nikkei Slump
Japan’s Nikkei 225 Stock Average slumped 2.1 percent as Japan’s export growth slowed last month, adding to risks in an economy already under threat by the yen’s appreciation. The Shanghai Composite Index dropped 1.2 percent as shares of developers dropped on speculation the government will introduce a property tax.
Australia’s S&P/ASX 200 Index fell 1.4 percent as Australian business investment unexpectedly fell in the second quarter and neither Prime Minister Julia Gillard nor opposition leader Tony Abbott gained an outright majority in last weekend’s national election. South Korea’s Kospi Index fell 2.6 percent as South Korea’s consumer confidence fell for the first time in five months, according to a Bank of Korea on Aug. 25.
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Disappointing U.S. Data
Disappointing economic data from the U.S., one of biggest markets for Asia’s exports, sparked concern shipment of goods from the region will weaken.
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Purchases of existing houses plunged by a record 27 percent in July, worse than the most pessimistic forecast of economists surveyed by Bloomberg News, figures released by the National Association of Realtors on Aug. 25 showed. Orders for durable goods increased less than forecast in July, according to a report released by the Commerce Department on the same day.
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China’s property developers dropped on speculation the government will introduce a property tax. The government is planning a real estate tax reform, Xinhua reported on Aug. 24, citing Xu Lin, director of the finance department at the National Development and Reform Commission. Xu didn’t say when the plan may be implemented, the report said.
After summer lull, Hong Kong IPOs set to buzz again
August 27 (Reuters) - After last year's flurry of stock offerings made Hong Kong the world's top spot for IPOs, the city is bracing for another surge, with companies targeting up to a combined $6 billion in September proceeds alone.
That IPO tally excludes the roughly $15 billion AIA deal expected to land in Hong Kong in October, when its parent AIG (AIG.N) completes the long awaited offering process.
"Compared with the second quarter, the current market seems to be stable, though it is still uncertain for the global economy for the rest of this year," said an ECM banker.
Several factors are playing a role in the expected jump in deals. For one, there is almost always a tide of investment banking activity after the summer holidays, when Wall Street, and City executives as well as investors are back at their desks.
Another factor is that the euro sovereign debt worries that hit markets several months ago, have faded away. While global markets are hardy robust, Asia's exchanges have outperformed their peers.
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Inner Mongolia Yitai Coal (900948.SS) and Mongolian Mining Corp (formerly Energy Resources) are among the deals in the pipeline, with each planning to raise about $1 billion from Hong Kong IPOs, said sources close to the deal.
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Russia buys Canadian company
August 27 (Voice of Russia) Russia’s State Corporation “Rosatom” is going to buy the Canadian “Uranium-1” Company. The acquisition of 51% of the company’s shares will prove the first move towards diversification of uranium production on the world scale, says the Head of “Rosatom” Sergei Kiriyenko in an interview with Britain’s daily The Financial Times. The transaction cost may run into 600 million dollars.
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“Rosatom” has long since been a world nuclear power production leader. Sergei Kiriyenko has recently paid a visit to Canada to show Russia’s interest in clinching the bargain. The mechanism is as follows: the Russian uranium holding “Atomredmetzoloto”, which is part of the “Rosatom” State Corporation, is due to boost its “Uranium” stake to 51%. The Canadian company has a number of cheap assets in several countries, including in Kazakhstan. …
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Rosatom’s successful cooperation with Australia, Kazakhstan and Mongolia is further proof of its diversification strategy. The company has firmly established itself as a reliable partner on the international nuclear energy market. Modern Russian nuclear power plants being built inside the country and abroad rank among the safest ones in the world. Rich experience and unique know-how enable Rosatom to effectively compete with leading foreign nuclear energy companies both in the construction and maintenance of power generating facilities. Also, Russia controls a vast segment of the nuclear fuel market. Nuclear power plants in Bulgaria, Hungary, Finland and China are loaded with Russian fuel.
Misc
EAD supports wild Saker Falcon nesting project in Mongolia
WAM Abu Dhabi, August 29th, 2010 (WAM) -- The Environment Agency- Abu Dhabi (EAD) is working on an innovative project with the Ministry of Nature, Environment and Tourism (MNET) in Mongolia on an artificial nesting programme aimed at increasing the wild Saker falcon population.
The process of placing 5,000 artificial nests has begun, all of which are predicted to provide nesting sites for up to 500 pairs of Sakers by the year 2015.
This project is being funded by the Environment Agency- Abu Dhabi (EAD), and resourced by International Wildlife Consultants (IWC) and their Mongolian partner, the Wildlife Science and Conservation Center (WSCC).
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Woori Bank opens lounge for Mongolian migrants
August 29 (Korea Herald) Woori Bank opened a lounge for migrant workers from Mongolia on Sunday under its recent commitment for an expatriate-friendly service.
The lounge, designed as a sort of shelter for Mongolians, is at the bank’s Gwanghi-dong branch in downtown Seoul.
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Among the celebrities who participated in the opening event were Rep. Na Kyung-won from the ruling Grand National Party, Mongolian Ambassador Gerel Dorjpalam, and Otgontsetseg Damdinsuren, a Mongolian-language professor at the Hankuk University of Foreign Studies.
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Link to article
--- "Mogi" Munkhdul Badral Executive Director
CPS International Email: mogi@cpsinternational.mn Mobile: +976-99996779 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 +976-9999-6779.
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