CPSI NewsWire brings you market updates on Mongolia, compiled by CPS International, a Mongolian marketing arm of CPS Securities, a Perth, WA based stockbroking and corporate advisory firm, specialising in capital raising for mining and junior stocks.
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CG closed -15.07% to C$13.70
Centerra slashes output forecast at Kyrgyz gold mine, shares fall
March 27 (Reuters) - Canadian miner Centerra Gold (CG.TO) on Tuesday slashed its forecast for 2012 production at its flagship mine in Kyrgyzstan by about a third due to ice movement in the pit, a decline sure to weigh on the fragile economy of the Central Asian state.
Toronto-based Centerra Gold said any repeat of the 10-day strike that disrupted production at the Kumtor mine last month also could jeopardize its ability to meet a revised output target of 390,000 to 410,000 ounces this year.
Shares of Centerra Gold, in which the Kyrgyz state owns a 33 percent stake, fell nearly to a 20-month low of C$12.65. The stock, which was one of the top percentage losers on the exchange, was trading down C$3.11 at C$13.02 on Tuesday.
Centerra had earlier forecast 2012 production at Kumtor of 575,000 to 625,000 ounces of gold, versus the 583,156 ounces achieved last year. The mine accounted for more than 90 percent of the company's total gold production last year.
Analysts, however, said the impact is only near term for the company and for the Kyrgyz economy. It does not affect the amount of gold Centerra has in the mine, they said.
The economy in Kyrgyzstan, a mountainous former Soviet republic where gross domestic product per capita is less than a tenth of that in neighboring Kazakhstan, relies heavily on gold production from Kumtor and remittances from migrant workers.
Kumtor, one of the highest-altitude gold mines in the world at nearly 4,000 meters above sea level, contributed nearly 12 percent of the country's GDP and more than half of its export revenues last year.
"This will mean a major decline in industrial production, GDP and tax revenues," said Orozbek Duisheyev, president of the Kyrgyz Association of Miners and Geologists. "We're talking enormous losses, in the region of $200 million to $250 million."
Centerra Gold said increased ice movement in the southeast section of the pit - exacerbated by the labor stoppage - would delay access to a separate zone where gold grades are higher.
As a result, production from the high-grade SB zone that had been expected this year would be deferred until 2013-2015, the company said in a statement. This would be partly offset by an acceleration of mining in the southwest section of the pit.
"It is not a fundamental or structural issue, just a pushout of production," said Salman Partners analyst David West, who has a "buy" rating on the stock.
LABOUR DISPUTE
Kyrgyz President Almazbek Atambayev, sworn in last December in the first peaceful handover of the presidency since independence from the Soviet Union in 1991, has pledged to stamp out corruption to foster investment, particularly in mining.
Centerra said that its "collective bargaining agreement" with employees at the mine was due to expire at the end of 2012.
"A work stoppage at any time during the year could have a significant impact on Kumtor achieving its revised forecast production," the company said.
Analyst Andrew Breichmanas of BMO Capital Markets cut his price target on the stock to C$22.50 from C$25.
Unionised employees at the mine went on strike last month over salary deductions for payments to Kyrgyzstan's social fund. The company said on February 16 it expected the settlement to cost about $4 million this year.
Last month's dispute followed a brief disruption in December, when protesters interrupted fuel and other supplies to the mine by blocking a road. That dispute was quickly resolved by a deal for more community involvement.
"There won't be any layoffs, Centerra will continue to pay the same amount of payroll and payroll taxes that they have always paid," said analyst Trevor Turnbull of Scotiabank.
Centerra also produces gold at the Boroo mine in Mongolia. The company last month reported a 36 percent increase in the size of its measured and indicated gold resources, driven by exploration at Kumtor and other projects in Russia and Mongolia.
Related: Centerra Gold shares fall 15% after outlook reduced due to ice-related delay – The Canadian Press, March 27
FEO trading +2% at 25c at time of writing
FeOre prepares for construction following government approval for Ereeny iron ore Feasibility Study
March 28 (Proactive Investors) FeOre (ASX: FEO) can commence construction of infrastructure and other facilities at the Ereeny Iron Ore Project in Mongolia after receiving government approval for the project's Feasibility Study.
The company has reached this milestone just three months after listing on the ASX.
The study was approved by the Minerals Authority of Mongolia, with certain provisions relating to environmental aspects, local authorities' requirements and renewal or modification of the Feasibility Study after three years.
Approval of the study is an important milestone leading up to the Ministry of Minerals and Energy will appoint a commission that will decide on the approval of mining operations.
Feore is aiming to have the Ereeny project in operation by the end of 2013.
Shares in Feore first began trading on the ASX on December 15, 2011, following a successful initial public offer of up to 140 million shares at A$0.25 to raise up to $35 million.
Ereeny project
FeOre's 108.7 million tonne Ereeny iron ore project is located 60 kilometres from the major trans Mongolian railway line between Russia and China.
The project covers approximately 3.26 square kilometres and extends to depths of over 400 metres. It hosts an Indicated JORC Resource of 57.3 million tonnes and an Inferred JORC Resource of 51.4 million tonnes.
First rail haulage of iron ore from the project for sale is targeted within 24 months of FeOre's listing on the ASX, which happened in December 2011.
Importantly, FeOre is in an ideal position to meet its goal having entered into a 10 year offtake agreement and a 10 year logistics agreement with China Railway Group subsidiary CRMI.
Through these two agreements CRMI has agreed to both transport and purchase FeOre's iron ore product.
AMO closed -8.16% to C$0.45
Altan Rio Completes Drilling Program in Mongolia with Strong Results and Announces the Commencement of Drilling at Khavchuu Project
Altan Rio Hits High-Grade Mineralization and Now Drilling Deeper into Mongolian Copper-Gold Project
Vancouver, March 27 (Financial Press) – Canada-based exploration company Altan Rio Minerals Limited (TSX Venture: AMO) is moving quickly beyond early exploration stages as it advances its copper and gold projects located in resource-rich regions of Mongolia.
The company's properties are all located in Mongolia with its primary focus being the Chandman-Yol copper-gold project located in the highly prospective Altai mountain range near Khovd in western Mongolia and the Khavchuu gold project, located in northern Mongolia and only 14 km from the Centerra Gold Boroo mill complex. Both projects are advancing quickly, the company recently announced results from a 2011 drill program at Chandman, the commencement of drilling at Khavchuu, and further drilling planned at Chandman for 2012.
Chandman-Yol, the company's 1400 km2, previously undrilled, flagship property spans nine 100%-owned licences, five of which are subject to a 2.5% net smelter royalty (NSR) payable to a third party.
The company spent $6M over the past four years. Work included geophysics, geochemistry and IP surveys which resulted in the identification of 7 target areas (see map below). To date, drilling has been focussed at the KY copper-gold porphyry.
(Picture)
(Source: Altan Rio Website – Chandman-Yol Project Showing all 7 Target Areas)
On March 2, 2012, Altan Rio announced results from a 13-hole, 7800 m drill program at the Chandman-Yol project targeting copper-gold anomalies from IP features and laid out the company's drill targets for 2012.
In the announcement, dated March 2nd, 2012, the company stated that it had found "strong molybdenum anomalies (100 ppm) in the northwestern sector, high grade gold (28 g/t) in the northeastern sector, and unusually high silver (100+ g/t), lead (>10,000 ppm) and zinc (>10,000 ppm) grades in the southeastern sector." Elevated copper occurs throughout the large 2 km diameter porphyry intrusive system with sporadic drill intersections over 1% copper.
Those anomalies are indicated on the map below:
(Picture)
(Source: Altan Rio March, 2012 Press Release – IP chargeability)
The company was disappointed that their drill contractor was not able to get many of the holes to depth to test the targeted IP features (see above) although mineralization identified above these features has significantly upgraded the targets.
Results included the following silver intercepts:
13.2 m (97.0 to 110.2 m) @ 43.12 g/t including 1 m @ 106.31 g/t and 1 m @ 118.86 g/t
39.6 m (185.0 to 224.6 m) @ 24.57 g/t including 2.5 m @ 128.3 g/t and 2.2 m @ 114.26 g/t
The highlighted intercepts consisted mainly of silver with the more disseminated copper found in the same holes being indicative of the porphyries found in this region of Mongolia.
This round of drilling for the copper-gold porphyry on the Chandman-Yol project, however, is just the start of Altan Rio's efforts in 2012. The company has combined its past geological mapping, extensive geochemical surveying, and other elements of geological reconnaissance on the Mongolian project to identify at least four new zones and intrusions.
Those additional zones, which are dispersed over a strike length of over 50 km, have also been targeted and Altan Rio is planning on drilling deeper in its next drilling campaign at Chandman in order to test the strong IP features deeper within the porphyry (see cross section below).
(Picture)
(Source: Altan Rio March, 2012 Press Release – KY Porphyry Cross Section Showing Deep Chargeability Drill Target)
In other news, on March 5th, Altan Rio announced the commencement of a six hole, 1800 m drill program at the Khavchuu gold project.
Altan Rio has the option to acquire 100% ownership of the 17,000 acre Khavchuu project which has multiple gold targets across the property. The project is located near infrastructure, only 8 km away from Centerra Gold's (TSX: CG) Boroo mine and mill complex. The project has never been drilled, and Altan Rio is keen to see the first holes into this project with Boroo mine style geology.
Kelly Cluer, the company's Director of Exploration is very experienced in the region, having worked previously as Exploration Manager for Centerra. He believes that Altan Rio's geochemical surveys and the geological setting show it as prospective for a "Boroo-style orogenic lode gold system." This type of project has significant quartz-sericite-sulfide alteration zones and also strong and distinct Induced Polarization (IP) anomalies.
Altan Rio has taken more than 1200 samples on the project and used them to focus in on the better results of the IP survey to identify and prioritise drill targets.
Although the company is a relatively new listing, having become quoted on the TSX Venture in January 2012, it is worth noting that Altan Rio was founded in 2007 and was well financed to actively explore through the financial crisis. The company is now in a rather unique position of being able to move quickly to drilling on several targets across two projects.
The company was founded by John Jones, prominent player in the Australian mining sector, Evan Jones and Kelly Cluer. The company is approximately 40% owned by its founders with Mongolian domiciles significantly holding more than 15% of Altan Rio's issued capital.
Altan Rio has a total market capitalization of approximately $22 million.
Petro Matad Appoints Ms. Amarzul Tuul to Board
March 27, Petro Matad Limited (MATD:LN) --
The Board of Petro Matad is pleased to announce the appointment of Ms. Amarzul Tuul to the Company's board as a Director.
Ms. Amarzul (Amaraa) has been a part of Petro Matad and its group companies from its formation since 2006, supported the Company's listing process on AIM in 2008 and was instrumental in applying and signing Production Sharing Contracts with the Government of Mongolia over Blocks IV and V in 2009. As Executive Director of Petro Matad LLC and Capcorp Mongolia LLC, Petro Matad's Mongolian subsidiaries, she oversees and manages the Group's operations in Mongolia including maintaining a solid relationship with its Mongolian stakeholders including government agencies, and serves on the Group's executive management committee.
Ms. Amarzul is a Mongolian citizen, educated in Singapore and has a BA degree in Foreign Relations. She began her career in 2002 with the Mongolian Government's Foreign Investment and Foreign Trade Agency (FIFTA) and moved into the Mongolian resources sector in 2004, through senior management positions in private resource companies. She is also the Executive Director of the newly formed Mongolian Petroleum Exploration and Production Association and serves on the Board of the Business Council of Mongolia.
Commenting on the appointment of Ms. Amarzul, Douglas McGay, CEO of Petro Matad said:
"In addition to the recent announced Board changes, it gives me great pleasure to welcome Amaraa, a young and talented Mongolian to the Company's Board of Directors. The appointment strengthens executive and management representation on the Board. Through her role as the Executive Director of Petro Matad's operating subsidiaries, Ms. Amarzul has earned the respect of both her colleagues and Petro Matad's stakeholders. I believe her business acumen, management insights, local knowledge and experience will contribute greatly to the Board's decision-making processes."
Schedule 2 Disclosures
For the purposes of AIM Rule 17 and Schedule 2(g) of the AIM Rules, the Company makes the following disclosures:
Ms. Amarzul Tuul (aged 34) is a director of Capcorp Mongolia LLC and Petro Matad LLC, both of which are subsidiaries of Petro Matad. Ms. Amarzul has an interest in 472,500 Petro Matad Ordinary Shares representing 0.03 per cent of the Company's issued share capital. There are no further disclosures for the purposes of AIM Rule 17 and Schedule 2(g) of the AIM Rules.
YAK closed -1.76% to C$3.90
Mongolia Growth Group Ltd. Announces AGM Date
Calgary, Alberta CANADA, March 27, 2012 /FSC/ - Mongolia Growth Group Ltd. (YAK - CNSX),("MGG" or the "Company") is pleased to announce that it will be holding its annual general meeting on April 14th 2012 at 2:00PM EST at the Westin Harbour Castle, 1 Harbour Square, Toronto.
If you are interested in attending the meeting, please email Genevieve Walkden at Gwalkden@mongoliagrowthgroup.com.
Petrovis sold 84.5M MMC shares at HK$7.5, bringing stake to 9.1% from 11.4%
March 28, Mongolian Mining Corporation (HK:975) Disclosure of Interest Notice
Excerpt
Focus On Mongolian Mining Corporation, Mongolia's Flagship Public Company
March 27 (Jon Springer via Seeking Alpha) --
Part 1
This article is based on data from an interview with Mongolian Mining Corporation CEO Dr. Battsengel Gotov on February 13, 2012, data gathered attending Coal Mongolia 2012 February 9 and 10, 2012, trips by the author to Mongolia in September 2011 and February 2012, and a review of recent Mongolian Mining Corporation activity and news.
In two trips to Mongolia, I have met with eight different locally run brokerage companies and a host of other investment professionals. I always try to find out what companies they like, what companies they don't like, and why. From this informal survey, Mongolian Mining Corporation (MOGLF.PK) always scores the highest. The reasons cited for this acclamation sound almost boring: "they don't over-promise," "they always do what they say they are going to do," "they have good relationships with their customers," "there is good transparency in their announcements and reports," "it's a well run company."
Mongolian Mining Corporation is Mongolia's premier publicly listed company and its primary owner is Mongolia's largest private company. The company is intimately tied to the economy, politics and business practices of Mongolia, and this report seeks to cover these angles to provide a deeper perspective both on the company and its home country.
Meet The Children Companies, Meet The Parent Company
Mongolian Mining Corporation is the full 100% owner of Energy Resources LLC, which is best observed on the below ownership chart from Mongolia Mining Corporation. This is need-to-know information as articles about Mongolia frequently cite Energy Resources without mention of Mongolian Mining Corporation.
…
TENDER OFFER FOR SHARES OF "ARBAYANKHANGAI" JSC
March 27 (MSE) According to resolution No.55 of Financial Regulatory Committee of March 14, 2012, tender offer to purchase 24.85 percent or 19,887 remaining shares of "Arbayankhangai" JSC at minimum of 200 tugrik per share, to Gerelmaa.B, Daichinkhuu.B, Batbilguun.B who own 75.15 percent or 60,153 shares has been approved. Tender offering will be effective for 60 business days from March 14, 2012.
Fitch: Mongolian Banks Pressured from Overheating Growth
Hong Kong, 27 March 2012 (Fitch Ratings): Fitch Ratings says in a new report that the Mongolian banking sector needs additional liquidity and capital to support strong loan growth.
"The pace of credit growth in the Mongolian banking sector has been rapid even by comparison with other emerging markets. Annual loan growth clocked in at 55% in 2011, a rate last seen prior to the 2008 economic crisis," says Chikako Horiuchi, Director in Fitch's Financial Institutions Team. "More stringent controls are needed. Yet the authorities' efforts in controlling credit growth and maintaining adequate capital and liquidity are compromised by lax implementation."
The system's loan/deposit ratio, which is to exceed 100% despite steady deposit growth, implies tighter liquidity and an increasing reliance on market funding. This renders the sector more vulnerable to market conditions.
Higher capital is also necessary to absorb unexpected losses, particularly in light of the volatile domestic operating environment, low reserve coverage, and expectations of a weaker pre-provision operating profit (PPOP) buffer. Fitch expects the PPOP for Mongolian banking sector to come down in 2012 and beyond with mounting pressure on net interest margin due to intensifying competition for both funding and new lending.
Given Mongolia's heavy dependence on mineral exports, its banking sector is exposed to external factors including commodity prices, foreign-exchange rates, slower economic growth in China, economic policy errors and political uncertainty, which could affect the flow of foreign direct investment.
The report, "Mongolian Banking Sector Update - Pressure from Overheating Credit Growth", is available at www.fitchratings.com or by clicking on the link above.
Fitch Rates Mongolia's XacBank's Senior Notes 'B(exp)'
Hong Kong, 27 March 2012 (Fitch Ratings): Fitch Ratings has assigned Monglia-based XacBank LLC's (XacBank) proposed foreign currency senior unsecured notes, to be issued under its USD300m medium term notes (MTN) programme, an expected rating of 'B (exp)' and Recovery Rating 'RR4'. The final rating is contingent upon the receipt of final documents conforming to information already received.
The notes are rated at the same level as XacBank's Long-Term Foreign Currency Issuer Default Rating (IDR) of 'B', as they will constitute direct, unsubordinated and senior unsecured obligations of the bank, and will rank equally with all its other unsecured and unsubordinated obligations. 'RR4', denoting recovery rates between 31%-50%, is the highest Recovery Rating that can normally be assigned to any issue ratings by Mongolian banks based on the agency's methodology.
The proceeds will be used for funding and general corporate purposes. Fitch also believes a proportion will be used for refinancing existing non-deposit funding maturing in 2012. The latter includes about USD40m borrowed funds and USD40m due to banks. After the refinancing, Fitch notes that the bank's funding structure will shift to debt capital market funding from borrowings from development funds. XacBank's ratings and in turn the issue rating for the senior unsecured notes may come under pressure should this change in funding pose material refinancing and margin pressures in future.
For more details on XacBank's ratings and credit profile, refer to "Fitch Affirms Mongolia's XacBank at 'B'; Outlook Stable ", dated 22 February 2012, and XacBank's full rating report, which will be published shortly, on www.fitchratings.com.
XacBank's ratings are as follows:
Long-Term Foreign and Local Currency IDR: 'B'; Outlook Stable
Short-Term Foreign Currency IDR: 'B'
Viability Rating: 'b'
Support Rating: '5'
Support Rating Floor: 'B-'
XacBank is the fourth-largest bank in Mongolia with a 9% market share in lending and a 7% share in deposits. The bank experienced a 66% annual loan growth in 2011, which Fitch expects to be exceeded in 2012.
TS.DASHDORJ MEETS RUSSIAN AMBASSADOR AND UB RAILWAYS HEADS
Ulaanbaatar, Mongolia, March 27 /MONTSAME/ The Minister of Road, Transportation, Construction and Urban Development Ts.Dashdorj has discussed measures to be taken for reforming the "Ulaanbaatar Railways" Mongolia-Russia joint venture and for increasing its freight capacity.
He considered these matters on Monday together with Mr. V.Samoilenko, the Ambassador Extraordinary and Plenipotentiary of the Russia Federation (RF), and authorities of the UB Railways joint venture.
Ts.Dashdorj said that "the UB Railways venture had big achievements in the previous year, and a time has come to pay attention to a development program of the joint venture, which plays its role in the Mongolia-Russia relations and cooperation."
All the problems, facing the venture, and the development program are to be considered in frames of the policy and laws on the railways, he added.
New railway holding company to be established
March 28 (news.mn) The Cabinet meeting yesterday discussed implementation of the Policy Document on Railway and decided to establish 51 percent state owned company.
New company to be own basic infrastructure of railway. For financing of new company The Government Reserve Fund will spend MNT518 million. Other MNT 399 million will be a loan.
Related: "ҮНДЭСНИЙ ТӨМӨР ЗАМЫН СУУРЬ БҮТЭЦ" КОМПАНИ БАЙГУУЛАХААР ШИЙДВЭРЛЭЛЭЭ – ЗГХМА, 3-р сарын 27
President sent a proposal to the Cabinet
March 27 (news.mn) President Tsakhia Elbegdorj have worked in Umnugovi, Dornogovi and Dundgovi province in last February. During his visit his introduced with OT and TT project in Umnugovi and met with local people. Many local citizens have complained on air pollution, on land issue and poverty. Therefore President decided sent a several proposal to the Government.
-To built new power station and and railway to transport coal,
-To start railway work within the 2012 as said in the Platform on Railway adopted by the parliament,
-To built parallel road for coal transportation with Ukhaa Khudag's road,
-To built second a railway line south of Bogd Mountain,
-To start construction of new power station within 2012 which will ensure energy demand OT and TT project,
-The have to consider issue on built refinery and metallurgical factory,
-To establish government agency who charge on Sainshand Industrial Park within the second quarter of 2012,
-To expand capacity of Zamyn Uud border point to finish of construction Free zone office building within the second quarter of 2012,
-To increase number of Zamyn Uud Customs employees,
-To study possibility to hire local companies for mining supply work such as food and clothes,
-To increase number Mongolian qualified employees in mining sector,
-To study put tax on coal and iron ore and deliver draft law to the parliament in third quarter of 2012,
-To do environmental evaluation in areas near the OT and TT,
The Mongolian Coal Association is a member of World Coal Association
March 28 (news.mn) The Mongolian Coal Association (MCA) has entered as member of the World Coal Association (WCA).
Mongolia earned USD 2 billion from its coal sector in 2011, a 30 to 50 percent increase over previous years.
Top mining companies such as BHP Billiton, Peabody Energy, Rio Tinto, Xstrata has membership in the World Coal Association.
Ivanhoe Mines Seeks Out Copper In The Gobi Desert; 2 Ways To Play Gold
March 27 (George Jarkesy via Seeking Alpha) Recently, I discussed Ivanhoe Mines, Inc. (IVN) with Clay Mahaffey, Chief Analyst of the National Eagles and Angels Association on the "Stock Watch" segment of my nationally syndicated radio program "The George Jarkesy Show". Below is the discussion we had on the show about the prospects for IVN and its copper mining operations in Mongolia. The stock is currently trading at $16.52 as of close on March 23rd and is something I believe the individual investor should add to their watch list and maybe it will be a good fit for your portfolio.
Clay and I also discussed Gold ETF's including Large Cap Gold Mining stocks (GDX) and a Junior Mining ETF (GDXJ) as I believe gold should be a part of every individual investor's portfolio. The timing now I believe is good with the recent pull back in gold prices. I think the fact that many governments and central banks around the world are acquiring gold is a good indicator of their thoughts and intentions. Below is the transcript from Clay Mahaffey's appearance on our show.
George Jarkesy: We have with us the Chief Analyst of the National Eagles and Angels, Clay Mahaffey.
Clay Mahaffey: Hey, George. How are you?
George Jarkesy: It has been a big world Wednesday. We have just had an action packed show here. And as you know, we've been talking about a little bit of all things global: gold, and copper, and platinum, and, silver and other things, including coffee beans. What do you have for us today on Stock Watch?
Clay Mahaffey: George, in continuing that theme of a big world, I'd like to present today Ivanhoe Mines, Inc. This stock trades on the NASDAQ symbol IVN. I like this stock because of its short term value. It's currently priced around $17.00. This company is basically a play on copper. They're developing the fourth largest copper mine in the world in the Gobi Desert of Mongolia. But this mine is only 250 miles to Beijing and the millions and millions of people in China.
They have other assets. They have another coal mine in Mongolia. They have a gold mine in Kazakhstan. They have mining interests in Australia. They have a platinum mine in South Africa. Especially important, George, the stock has fallen 50 percent in the last six months in trades relative to the price of copper, but I think it's really undervalued at the current price.
George Jarkesy: Let me add in there, though, it dropped 50 percent, and copper is its main production. But copper only went down 11 percent in that same period.
Clay Mahaffey: Yes, I can explain that. It's a mispricing that investors could exploit. The size of this mine is mindboggling. They estimate they have a total of 50 billion pounds of copper than can be recovered from the mine. The value of the copper - and there's a little bit of gold - about 10 percent of the value is from gold. It's about $200 billion in the ground. The market cap of the company today is only 12 billion.
This is a good opportunity because a lot of the risk in mining companies is their ability to get financing. This company has developed a partner, Rio Tinto, Inc. (RIO), which is a $75 billion mining company based in Australia. They have financed construction of the project, which is 75 percent complete, out of cash and loans.
They're negotiating now at the World Bank, for a $4 billion project financing loan, which means there's no recourse to the owners. They will invest in the projects on its merits, which are very good. That's the story. It's a play on the global supply and demand of copper. With the developing countries, the demand for copper is growing very high. They need copper for appliances, transportation, wiring, and power. It's a very basic commodity. This will be one of the largest new mines in recent memory.
George Jarkesy: Have they said how long they expect that the new mine will actually go into production and start to show up in revenues and earnings? And then next question: When will the earnings start to show up? A lot of times in those mining projects, it's a couple years after you open the mine until you actually start to see the profits go up.
Clay Mahaffey: They've been developing this project for ten years already. They expect the initial production later this year. Within in one year, they will start the initial production. Within two years, George, I estimate the revenue will be $5 to $6 billion per year coming out of this mine; based on copper and gold, at the current market prices for those commodities. The company estimates that (the production) is good for ten years at a minimum.
George Jarkesy: With those revenues - and I know these are all commodity based and they can change dramatically with the price of that commodity - but what kind of earnings are you looking at on $6 billion of sales projected?
Clay Mahaffey: It should be a large, efficient - I don't have an exact number, but it should be one of the most profitable mines. It's a high grade or it's a combination of copper and gold, so you have a little bit of an offset from one product to the next on that end. It should be a very profitable business.
George Jarkesy: Okay. So the stock's around $17.00 right now. What is the symbol on it?
Clay Mahaffey: The symbol is IVN, India, Victor, Number.
George Jarkesy: IVN, and its Ivanhoe Mining. Let me ask, we have listeners who have listened to the show today. They heard about why I think there are many things that could happen this year that could make gold move much higher. What other ways would you tell our listeners - other than, of course, you can go buy bullion gold, silver, platinum bullion. You can do those things. But what other ways would you recommend investors could buy gold, or what other tools do they have that you would tell them to look at to try to get the gold, silver, platinum exposure?
Clay Mahaffey: George, there's an ETF that trades strictly based on the price of the commodity, gold. And then you have a group of ETFs, exchange traded funds, that hold a fixed portfolio of gold mining stocks. There are two that are popular. One is the Large Cap Gold Mining stocks. Their symbol is GDX.
There's another ETF that is more focused on the smaller, what they call junior mining companies. These are more speculative. The symbol of that ETF is GDXJ. Those are two options for playing the price of gold by getting a basket of stocks of mining companies primarily involved in gold mining. Normally, they have more leverage and they're more volatile. There's more upside and there's a little more downside to the price of gold.
George Jarkesy: So those ETFs are GDX, or the more speculative one for the junior mining companies is GDXJ.
Clay Mahaffey: That's it.
George Jarkesy: All right. That gives you some more tools in your investor tool chest. Clay Mahaffey, thank you for being on today.
Clay Mahaffey: Thank you, George.
Disclosure: Neither George Jarkesy or Clay Mahaffey hold Ivanhoe Mines, Inc, GDX or GDXJ.
Disclaimer: The George Jarkesy Show or the National Eagles and Angels Association are not investment advisors. Any content published by The George Jarkesy Show or the National Eagles and Angels Association does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. All content on The George Jarkesy Show Website and The National Eagles and Angels Association is produced independently of any advertising relationships.
"МОНГОЛЫН УУЛ УУРХАЙН НЭГДСЭН ЛАВЛАХ-2013" НОМОНД ЗАХИАЛГАА ӨГЧ 10 ХУВИЙН ХӨНГӨЛӨЛТ ЭДЛЭЭРЭЙ
3-р сарын 27 (www.mining.mn) 2012 оны 3-р сарын 28-30-ны өдрүүдэд Мишээл Экспо төв дээр 5 дахь жилдээ болох MineTech-2012 уул уурхайн тоног төхөөрөмжийн олон улсын үзэсгэлэн дээр "МОНГОЛЫН УУЛ УУРХАЙН НЭГДСЭН ЛАВЛАХ-2013" номны бүртгэл албан ёсоор эхэлнэ.
Та бүхэн хүрэлцэн ирж 2011 оны номыг үнэгүй авч захиалгаа өгөн 10 хувийн хөнгөлөлт эдэлнэ үү.
Дэлгэрэнгүй мэдээллийг:
http://www.mongolianminingdirectory.mn
Misc
850 Mongolian soldiers deployed to South Sudan
March 28 (UB Post) 850 Mongolian soliders will take part in the ongoing peace keeping efforts in the newly formed country of South Sudan.
Defense Minister J.Enkhbayar, the Secretary of the Defense Ministry, Lieutenant General Ts.Togoo, Deputy Director of the General Staff of the Mongolian Armed Forces, and Major General B.Bayarmagnai met with military Unit 150 on March 23rd at their training facility near Tavan Tolgoi.
"Beginning this week, 850 Mongolian soldiers will take part in the international peace keeping mission in South Sudan. This is the biggest unit ever deployed. Promoting peace is not easy. It is about imposing peace forcefully in a country where there are ongoing crises in government and politics, and there is so much possibility for a civil war to arise.
Although the situation there is tough, Mongolian soldiers will overcome those obstacles with their military skills, tolerance, and mental strength," Defense Minister J.Enkhbayar said.
Mongolia has been participating in peacekeeping missions for 10 years sending 5800 soldiers overseas including over 400 soldiers who are currently deployed in Afghanistan.
Major General B.Bayarmagnai said, "Any soldier whose heart is dedicated to their country has numerous chances to get promoted."
Cambridge Exam to be tested in schools starting next week
March 28 (UB Post) 31 schools will implement University of Cambridge International Examinations (CIE) starting next week.
Prime Minister S.Batbold initiated a shift in the Mongolian education system into CIE about two years ago. Secondary schools Shine Erin, Shine Ehlel, and Mongol Temuulel are currently adhering to CIE standards.
A newly reworked form of CIE for Mongolia children is going to be tested in 1 school in each province and 10 schools in Ulaanbaatar starting April 5th.
Over 300 teachers who will teach their classes according to CIE took part in a five-day training held at Shine Erin Secondary School.
Educational experts from Mongolia made sure that the CIE has been adapted and formulated for Mongolia children.
Prime Minister S.Batbold paid a visit to the school and met with teachers on March 26th.
He said, "During the last century we successfully introduced a Russian education system to our country. Our dream to domesticate world education programs and standards to our country is starting to be implemented in real life. Whether CIE is going to be implemented in Mongolia will greatly depend on Mongolian teachers, so training is essential.
We have already had teachers involved in CIE introduction training. It is obvious that deposits such as Oyu Tolgoi and Tavan Tolgoi will make contributions to Mongolian development. But in the end, education and well-educated people will be key factor for Mongolia to be fully developed."
Starting April 5th children in 5th, 6th, 9th, and 10th grades will be introduced to the new program and starting September 1st, children of all grades will be taught according to CIE.
J.Bayarsaikhan, one of the teachers involved in the training, said, "There is not much difference in the theory of knowledge. The difference is in the methodology. Teachers need to work hard and need to compete."
University of Cambridge International Examinations (CIE) is the world's largest provider of international education programs and qualifications for 5 to 19 year olds. The qualifications are taken in over 160 countries and recognized by universities, educations providers, and employers across the world.
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"Mogi" Munkhdul Badral
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