Thread: Mongolia's new model

Mongolia's new model
http://www.canada.com/business/fp/Mo...354/story.html


Sukhbaatar Batbold, Mongolia’s Prime Minister, looks to Canada as an inspiration and potential partner
Photograph by: NELSON CHING / BLOOMBERG News files, NELSON CHING / BLOOMBERG News files
Ulaanbaatar, Mongolia -- Outside Mongolia’s Government Palace, a massive statue of Genghis Khan looms over the city’s central square. It is a symbol of the days in the 13th and 14th centuries when the Mongol Empire conquered its neighbours and became one of the most powerful in the history of the world.

Inside the palace today, Prime Minister Sukhbaatar Batbold is dealing with a much more modest but equally imposing challenge: raising the standard of living for his tiny population of three million people.

Unlike many of his predecessors, he is turning to the capital markets, and partners that include Canada, to do it.

In a wide-ranging interview in his office, Mr. Batbold talked about the need to introduce more tools of a market economy to his country, including a truly international stock exchange. He also sees Canada, which is the second-biggest investor in Mongolia after China, as a crucial player in the country’s development.

“I think Canada is a good example, and could even be a model for Mongolia. There are a lot of natural similarities between our two countries,” he said, pointing out that both are cold, sparsely populated and have extremely powerful neighbours on their borders.

Mr. Batbold, 47, is heading to Canada on Monday for his first official visit to the country, and the first by a Mongolian leader since 2004. He will meet with Stephen Harper, the Prime Minister, and other government officials to try to build more co-operation between the two countries. That will include a push for further trade liberalization. He goes to Ottawa after a visit this week to New York, where he addressed the United Nations and reportedly met with Wall Street investors.

Mongolia has done almost everything possible to open its doors to outside investment in recent years, but Mr. Batbold is aware that a lot more needs to be done.

The country is only 20 years removed from the days of Soviet control, and is still finding its feet as an established democracy. Relics of the Soviet era can be found everywhere, including a surreal statue of Lenin in front of Ulaanbaatar’s most famous hotel.

As Canadian mining companies in Mongolia know well, breaking free of that legacy has been a challenge, with rapid progress but occasional missteps along the way.

Like many developing nations, Mongolia is massively rich in natural resources, but does not have enough to show for it. Its unemployment rate has remained well above 30% for years, and has remained high despite the rapid development of its resources in recent years.

Mr. Batbold, an entrepreneur with a successful business background who became prime minister last year, believes that something as simple as a functioning stock market would allow Mongolians to benefit from the billions of dollars of investments being made in the country.

Mongolia has had a stock exchange since 1991, and while it lists many domestic companies, liquidity is extremely poor.

The stock exchange is open for less than two hours a day and it does not have the standards needed to attract any international companies.

“It doesn’t really operate as a capital market,” Mr. Batbold said.

By the end of the year, he hopes to open a proper international exchange managed by a leading global player. (While the choice has not been made, the London Stock Exchange Group PLC is the frontrunner.)

To help kickstart the exchange into relevancy, Mongolia is planning an initial public offering of Tavan Tolgoi, a large government-owned coal mine, as well as other state assets that should be attractive to domestic and foreign investors.

Mr. Batbold wants foreign players with Mongolian business interests to list as well, but that could be tougher: They remain wary of the lack of international standards and the general lack of demand from the Mongolian market.

But as least one Canadian company is eager to take the plunge.

SouthGobi Resources Ltd., the coal-mining spinoff of Vancouver-based Ivanhoe Mines Ltd., hopes to be the first international company with a Mongolian listing. It has already hired an armada of lawyers to help the government deal with the impediments to foreign listings, from the proper defining of a security to putting in limitations on directors’ liabilities.

“The government says it wants [foreign companies] to list on the Mongolian stock exchange. Everyone else says ‘that’s stupid, there’s no rules for foreign companies, blah blah blah,’ ” said Alex Molyneux, SouthGobi’s chief executive.

“But we want to list there because we want the Mongolian public to participate in this creation of value. And it’s much easier for them if they have a market at home for the stock.”

While it may seem far-fetched to investors today, Mr. Molyneux envisions a day when Mongolia is a source of capital along the lines of Dubai, with a powerful sovereign wealth fund and massive resource-related revenue as it realizes the wealth from its mineral deposits.

He wants to get in early.

“Maybe we can only do US$10-million [on the Mongolian exchange] at first. So what? In Kazakhstan, the stock market increased 1,000% in size in the space of about six years. It’s going to happen in Mongolia,” he said.

Of course, Mongolia’s biggest source of wealth in coming years will be Oyu Tolgoi, the massive copper-gold deposit being developed in the Gobi Desert by Ivanhoe Mines and its partner Rio Tinto Ltd. (They continue to co-operate despite an ongoing spat at the corporate level.)

After years of tense negotiations, an investment agreement on the project was reached between the government and Ivanhoe last year. Mine construction is now moving quickly, with about 4,500 people at the site. By the time full production is reached, expected by 2018, Oyu Tolgoi should make up an astonishing 30% of Mongolia’s gross domestic product on its own.

Mr. Batbold visited the site with his Cabinet last month and was amazed at what he saw. “It’s something really astonishing,” Mr. Batbold said. “I have never seen such a sophisticated underground operation. Probably this is even unique on a world scale.”

He views Oyu Tolgoi as just one example of what can happen when companies from Canada and elsewhere invest in Mongolia, and he hopes it is a catalyst for more Canadian investment in the country, and closer links between the two nations across a number of sectors.

“We see that Canada has made great success in many areas, and we think it’s interesting to learn from the Canadian experience. Free trade, technology transfer, mining, agriculture and infrastructure, are all very important,” he said.

“We need to make a more sophisticated institutionalized society here, so we need to learn from your experience.”

Financial Post

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MONGOLIAN SNAPSHOT

Population: three million

GDP: 2010 - 8%; 2011 - 7.1%

Deficit: Fiscal deficit is expected to fall to 2% of GDP, well below the government’s original target

AN ASSESSMENT

Canada is the largest investor in the mineral sector in Mongolia and the second-largest investor in Mongolia after China. Canadian direct investment in Mongolia is US$252-million, 97.5% of which is solely registered in the mining sector.

Mongolia ranks 60th out of 183 economies in terms of ease of doing business, according to The World Bank report “Doing Business 2010.”

The Mongolian government declared 2010 as a “business renovation year” with the aim of improving businesses and legal environment and regulations with public participation.

Mongolia’s national development strategy, approved in 2008, defines mining and heavy industrial sectors as priority sectors.

Mongolia ranks second globally by its rare earth elements, according to the U.S. Geological Survey Bulletin. Mongolia has 16.77%, or a 31 million tonne deposit, of rare element resources.

“The outlook for Mongolia’s economy is extremely favourable. The signing of a landmark investment agreement in late 2009 to develop the Oyu Tolgoi mine in Mongolia’s South Gobi Desert — referred to by some as the biggest undeveloped copper-gold project in the world — has been a cornerstone for the development of Mongolia’s substantial mineral resources.

The development of other major projects, like the massive Tavan Tolgoi coal deposits in southern Mongolia, is also underway. The economy is growing strongly and this ongoing development of the mineral sector points to a bright future.” — International Monetary Fund, Sept. 13 report

Sources: The World Bank, “Doing Business 2010”; International Monetary Fund, CIA World Factbook

GE and Newcom Sign MOU for Strategic Cooperation in Mongolia
http://www.marketwatch.com/story/ge-...k=MW_news_stmp




NEW YORK, Sep 24, 2010 (BUSINESS WIRE) -- General Electric Company (GE) and Newcom Group (Newcom) announced to jointly explore business opportunities in Mongolia, one of the fastest growing and resource-rich markets in Asia. Newcom is a leading privately owned investment company in Mongolia with interests in telecommunications and information technology, real estate, clean energy and aviation. GE will be the largest multi-national company to operate in the Mongolian market.

Mr. Boldbaatar Tserenpuntsag, Chairman of Newcom Group and Mr. Mark Norbom, the President and CEO of GE Greater China signed today a memorandum of understanding in New York in presence of H.E. Mr. Batbold Sukhbaatar, Prime Minister of Mongolia and Mr. John G. Rice, Vice Chairman of GE and President and CEO of GE Technology Infrastructure.



The two companies agreed on the principles and basis to explore a sustained partnership in key sectors of the economy, including power, civil aviation, healthcare, railways, water, mining, lighting and financial services.

"GE is very excited to explore growth opportunities in Mongolia with a strong partner like Newcom. Each company brings strengths that are well-aligned with Mongolia's growth needs -- GE brings technologies and expertise in infrastructure and financial services and Newcom brings established relationships and operations in the market," said Mr. Norbom.

"Newcom is happy to be GE's partner of choice in Mongolia. Indeed, we are a perfect match -- it is imagination and innovation that drives our two companies. As GE has stood at the forefront of imagination and progress in the world for over a century, Newcom has been a pioneer in new and innovative technologies in democratic Mongolia. Together we are set to team for growth and take on big development challenges in emerging Mongolia," said Mr. Bold Baatar, the CEO of Newcom Group.

Mongolia is rich in energy and mining resources and is strategically located next to growing and resource hungry markets. It is home to some of the world's largest coal and copper deposits, and vast wind energy potential. Mongolia's GDP is expected to expand six times in the coming ten years, driven by dynamic growth in mining and infrastructure.

Newcom Group, founded in 1993, is a long term investor committed to bringing global expertise and innovation to Mongolia. Newcom Group (www.newcom.mn) employs about 1,700 people and has a successful track record and portfolio of investments across telecommunications, information technology, airline, financial services, real estate and clean energy industries. The company's headquarters are in Ulaanbaatar, Mongolia.

GE (GE 16.66, +0.52, +3.22%) is a diversified infrastructure, finance and media company taking on the world's toughest challenges. From aircraft engines and power generation to financial services, health care solutions and television programming, GE (www.ge.com) operates in more than 100 countries and employs about 300,000 people worldwide.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/...442413&lang=en

SOURCE: GE

Miners in Mongolian land rush
Robin Bromby, Pure Speculation From: The Australian September 27, 2010 12:00AM
http://www.theaustralian.com.au/busi...-1225929699360

KELL Nielsen has looked at between 80 and 100 mineral projects in the past eight weeks. That's how it is in Mongolia these days.

Nielsen, who heads Voyager Resources (VOR), knows the race is on between mining companies to lock up ground in Mongolia, which might be best described as the Next Big Thing in the resources world.

Voyager is not a stock that has commanded all that much interest -- or support, for that matter, with its last sale at just 1.4c.

But its first pass drilling at the Daltiin Ovor project turned up some interesting intersections, including 3m at 50.59 grams/tonne gold, 4 per cent copper and 31.3g/t silver, starting just 6m below surface. Nielsen is planning to do more testing of the high-grade areas, but using a diamond drill rather than a reverse circulation one. The latter is fine for resource statements under ASX rules, but the Mongolians require diamond drilling results when applications are made for licences.



But back to those 80-plus projects. Voyager is casting its net widely, excluding only ferrous metals and coal. Its focus so far has been copper-gold, but it is looking at base metals projects, too. And especially tin, with that metal now coming on to many investor radar screens.

Last year, Nielsen thought he would have a two-year window for picking up projects in Mongolia, but the land rush has just picked up significantly in recent months. He'll be looking to bed down deals as soon as possible.

And we hear there's mounting excitement at Aspire Mining (AKM) regarding the present drilling at its Ovoot coking coal project as the company gets near its initial JORC resource statement. It has to be big, mainly to justify building a railway line of about 500km to the remote location -- although the economics of that would be helped if other large deposits en route, including magnetite and phosphate, were also to be developed.

By the way, for those who still think of Mongolia as a basket case, the International Monetary Fund reported this month that the country had witnessed a dramatic turnaround in the past 18 months. In early 2009, growth had been stalling, international reserves were rapidly being depleted, there was insufficient financing to meet the spending needs of the government, and the banking system was under pressure. The economy was on the verge of collapse.

But look at Mongolia now, with growth for 2010 expected to come in at 8 per cent and, as the IMF summed it up, "international reserves are at an all-time high, public finances are on a sound footing, and the banking system has been strengthened".

Magnetic attraction

IT was a diamond of a week for George Sakalidis, a Perth exploration enthusiast who we have followed for some time -- generally in a benign mode, but occasionally making George hot under the collar.

First, Breakaway Research put a target price of 70c on his Magnetic Resources (MAU) against Friday's close of 38c. MAU has 6300sq km of ground in Western Australia -- most of it close to existing railways -- which are prospect for iron ore. Breakaway is enthusiastic about two projects in particular: Wubin, just 80km south of the operating Sinosteel iron ore mine and with similar types of ore on surface, and Jubuk near Corrigin.

Magnetic is targeting up to 1 billion tonnes at Wubin, with at least 50 million tonnes of direct-ship ore; the target at Jubuk is 100-200 million tonnes.

The other bit of news concerned another of Sakalidis's four companies, Image Resources (IMA). As expected, it has signed up for the first stage of a co-operation deal with Diatreme Resources (DRX) in respect of the Cyclone heavy minerals deposit in WA which covers ground owned by each company. DRX is already in bed with a Chinese company and this deal with IMA is a logical progression to raising the finance for what could be a world-class zircon operation -- especially with zircon prices soaring.

Manganese rises

ANOTHER mineral that is doing all right is manganese.

Its price went stratospheric before the GFC, reaching $US20 a dry metric ton unit. Then, post-GFC, it dipped to $US2/dmtu, but now it's back to $US8, which one explorer told us was "a great price".

It needs about 10kg of manganese alloy for every tonne of steel, so the metal is very dependent on the steel industry. It's the fourth most used metal after iron, aluminium and copper. But there aren't all that many high-grade deposits.

So keep an eye on the contenders -- including Shaw River Resources (SRR), Montezuma Mining (MZM), Groote Resources (GOT) and Aurora Minerals (ARM).

During the week we heard from Spitfire Resources (SPI) that it's about to hit the drilling again at its South Woodie Woodie project, 50km south of the operating Woodie Woodie manganese mine, the holes to go into 23 targets.

And Northern Mining (NMI) said sampling at a Northern Territory prospect had returned manganese grading at 45.6 per cent.

Tailenders

lTWO high-priority targets beats one, and that is the situation in which Modena Resources (MDA) finds itself at Padre Island, Texas. The junior announced the Dunn Deep target 10 days ago, and now says its Manzano Deep prospect could contain somewhere between 337 billion and 816 billion cubic feet of gas. These are in addition to the producing gas network bought after the previous owner went bankrupt. MDA last traded at 2.2c.

lDRILLING has begun at the Talga Talga project east of Port Hedland. This kicks off the exploration program by the recently listed Talga Gold (TLG), which had its July IPO over-subscribed. As we have noted previously, gold was first found at Talga Talga in 1894, but no meaningful drilling has ever been done. Two factors make this of interest: one, of course, was the yellow metal price touching $US1300/oz on Friday; the other is that investors seem to be renewing their interest in Australian gold plays after the West African story's big price run.

[email protected]

Shenhua sees larger output in Inner Mongolia coal project
http://www.steelguru.com/raw_materia...ct/167120.html


China Knowledge citing Mr Zhang Wenjiang General Manger Assistant as saying that Shenhua Group, China biggest coal producer and the parent of China Shenhua Energy Co Ltd on September 16th its large-scale coal liquefaction project in Inner Mongolia is likely to produce 500,000 tons of refined oil.

Products from the project which was put into commercial operation in May include petrol, diesel oil and liquefied petroleum gas.

The project is expected to produce 1.08 million tonnes of synthetic fuel a year which is equivalent to 20,000 barrels per day. The figure may reach 3 million tonnes in the future.

United Industrial Corp, one of the leading Russian investment management companies said in July that it was in talks with Shenhua Group on selling stake in its subsidiary EPC which owns a large coal field in Siberia.

(Sourced from China Knowledge)

UPDATE 1-Khan Resources gets Mongolia agency breather, shares up
http://www.reuters.com/article/idUSSGE68K0KU20100921


Tue Sep 21, 2010 11:16am EDT
* Says dispute period has now expired

* Says NEA decision not to challenge ruling "encouraging"

* Shares rise 13 pct

Sept 21 (Reuters) - Khan Resources Inc (KRI.TO) on Tuesday said the Nuclear Energy Agency (NEA) did not challenge a Mongolian court ruling, which invalidated the agency's decision to cancel mining license for one of the company's units, sending Khan's shares up 13 percent.

On Aug. 2, the court had said the NEA decision to invalidate Khan Mongolia's exploration license, covering part of the Dornod uranium property, was illegal and invalid.

The NEA had decided to appeal the court's decision.

"The dispute period for the Aug. 2 decision by the Mongolian Capital City Administrative Court in favor of Khan's subsidiary, Khan Resources LLC, has now expired," the Canadian explorer said.

The company, which owns license to explore uranium at Dornod, has been facing trouble from Mongolian authorities.

The decision by the NEA not to appeal the court ruling was unexpected, but "we are encouraged that they have chosen not to challenge the decision," Chief Executive Grant Edey said in a statement.

The company also said the appeal on the hearing for its Central Asian Uranium Co LLC (CAUC) license is expected to be heard in late September. In April, the Mongolian agency cancelled the mining license of its majority-owned CAUC, citing certain violations. [ID:nSGE63C0HN]

Shares of Toronto, Ontario-based Khan were up 4 Canadian cents at 35 Canadian cents Tuesday morning on the Toronto Stock Exchange. They have lost nearly two-thirds of their value since April 13 when the company said the NEA had cancelled license of CAUC. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Roshni Menon)

Mongolia Plans to Seek Tavan Tolgoi IPO After Exchange Opens, Keep Control
http://www.bloomberg.com/news/2010-0...p-control.html

Mongolia will seek an initial public offering for its Tavan Tolgoi mining assets after this year’s opening of a national stock exchange, with the government retaining control, Prime Minister Sukhbaatar Batbold said.

The country will sell as much as a 50 percent stake in the coal deposit to the public, Batbold said in a briefing in New York today. Mongolia will pick a contractor for the project in the next month, he said.

China, the world’s biggest steelmaking nation, last year increased imports of coking coal fivefold to a record as the government closed unsafe mines. Mongolian Mining Corp. and Winsway Coking Coal Holdings Ltd., both of which operate in Mongolia, are seeking to raise as much as HK$9.74 billion ($1.3 billion) in Hong Kong initial public offerings to fund expansion, according to term sheets sent to investors.

London Stock Exchange Group Plc is the “frontrunner” to be the partner of Mongolia’s exchange and hold “management rights,” Batbold said today. The country aims to open the exchange this year, he said.

Batbold said he hopes publicly traded companies with “strategic” assets in Mongolia, like Rio Tinto Plc., will seek listings, and the country may seek to require them to do so.

Winsway Says IPO Proceeds Expected to Be HK$3.65 Bln
September 26, 2010, 6:14 AM EDT
http://www.businessweek.com/news/201...-3-65-bln.html

Sept. 26 (Bloomberg) -- Winsway Coking Coal Holdings Ltd., the supplier of the steel-making fuel from Mongolia to China, said net proceeds from its initial public offering in Hong Kong may be about HK$3.65 billion ($470 million).

The company will initially offer 990 million shares at between HK$3.25 and HK$4.50 apiece, Winsway said in a statement today. Trading in the stock is expected to start on Oct. 11, it said.

China, the world’s biggest steelmaking nation, last year increased imports of coking coal fivefold to a record as the government closed unsafe mines. Winsway plans to spend about 72 percent of the proceeds of the share sale on rail links and other infrastructure to improve the transport of coking coal from Mongolia to China.

Winsway exported about 3.3 million tons of coal into China last year from Mongolia out of total coal exports of about 6 million tons, according to the company’s share sale prospectus. China imported a total of about 34.4 million tons of coking coal last year, the document said.

Net income will be at least 764 million yuan ($114 million) for the year ending Dec. 31, up from 454 million yuan last year, the company said in the share-sale document.

The coal supplier is looking to buy mining assets in Mongolia as part of its joint venture with the U.S. coal producer Peabody Energy Corp., the prospectus said.

Winsway’s customers include more than 60 of China’s largest steel and coke producers, including Hebei Iron & Steel Co., according to the statement.

Mongolian Mining Corp., another coking coal supplier, is also organizing an IPO in Hong Kong and plans to raise as much as HK$5.28 billion.

--Editors: Stan James, Ben Richardson.

To contact the reporter on this story: John Duce in Hong Kong at [email protected]

Chinalco To Integrate Resources In Inner Mongolia
http://www.capitalvue.com/home/CE-ne...3/post/1218776

September 25 -- Aluminum Corporation of China’s (601600, 2600.HK) parent company, Chinalco, signed cooperation agreements with the Inner Mongolia Government on September 19 to cooperate in the integration of coal, electricity and aluminum resources, reports yicai.com, citing a company filing.

Chinalco is the largest nonferrous metals processing enterprise in China. Its subsidiary, Baotou Aluminum (Group), has a high-purity aluminum production base with capacities of 20,000 tons of high-purity aluminum, 20,000 tons of alloy, 45,000 tons of carbon products, as well as 12,000 tons of silicon.

Inner Mongolia has the largest coal output among all the provinces in China. The province is currently working on the integration of its coal resources.

Erdene Initiates Exploration on New Copper-Gold Discovery
Provides Update on Mongolian Coal and Metals Exploration Programs
http://www.marketwatch.com/story/erd...k=MW_news_stmp
HALIFAX, NOVA SCOTIA, Sep 22, 2010 (MARKETWIRE via COMTEX) -- Erdene Resource Development Corp. ("Erdene" or "Company") (CA:ERD 0.48, -0.03, -5.88%) today provided an update on its ongoing exploration programs for coal and metals in Mongolia.

Mongolia: The Saudi Arabia of Central Asia
Meeting the Mongolian PM in NYC
http://www.energyandcapital.com/arti...tral-asia/1278
By Christian A. DeHaemer
Friday, September 24th, 2010
It’s a big week as UN leaders from around the world have descended on the Big Apple for the 65th United Nations General Assembly.
President Mahmoud Ahmadinejad of Iran threw rhetorical bombs at the United States.
UN Secretary-General Ban Ki-moon spoke like a beauty pageant contestant — albeit with more geographical knowledge — by talking up peace, security, and an end to poverty.
President Obama and Premier Wen Jiabao of China sat down to discuss the problem of an undervalued Chinese currency.
Former President Clinton hosted an event to bring world leaders and philanthropists together for his Global Initiative. This is an extremely pragmatic organization that seeks to accomplish all the things Ban Ki-moon talked about.
As you would expect, at a time when all the world leaders are in the same place, things happen.
I was lucky enough to attend a small gathering put on by Firebird Management, the largest investor in Mongolia, featuring Mongolian Prime Minister Sukhbaatar Batbold.
The setting was a posh Broadway condo. The food was excellent and the waitresses looked like they'd just stepped off a fashion runway. The architecture was sleek, modern, and understated.
Some of the 75 people or so where bigwigs at places you’ve heard of, like Goldman Sachs and Morgan Stanley; but most of the people I met were private bankers, worked for large foundations, or were hedge fund traders of some sort — commodity, equity, frontier markets.
Without using an interpreter, PM Batbold outlined points I’ve been writing about for a year now...
Mongolia has vast reserves of mineral wealth, including the world's largest gold mine and the fourth largest reserves of coal.
He mentioned the IMF has projected that Mongolia will be the best performing economy in terms of GDP growth over the next five years. He hammered home this point by saying that it won’t be China, India, Brazil, or any of the other countries you often hear about...
PM Batbold pointed out that Mongolia has very few restrictions on the movement of investment into and out of Mongolia. Foreigners can own 100% of a business, and the government does not prescreen; however, foreigners are not allowed to own land.
Strategic mineral and oil resources are subject to a 34% percent equity stake by the government.
The Prime Minister pointed to the October 2009 agreement between Ivanhoe Mines of Canada and Rio Tinto and the government of Mongolia to develop Oyu Tolgoi (OT). (OT is billed as the world’s largest undeveloped gold mine. It’s a copper-gold deposit located in the South Gobi desert.)
Mongolia gets 34% of the deal, which will inject $7 billion into the economy over the next few years. Considering the fact that the Mongolian GDP is somewhere between $6 billion and $9 billion, this single deal is expected to double the economy.
The PM outlined the vast mineral resources of Mongolia in terms of oil, natural gas, coal, uranium, lithium, etc... Along those lines, he pointed to the problems in transporting these natural resources to industrial markets.
His goal is to develop industries that add value to these raw materials in Mongolia, and so advance to a more modern economy.
There is a rule that all companies operating in Mongolia be listed on its exchange as well as on that of the company's home country.
The Mongolian Stock Exchange is seeking a major exchange to act as a partner and take over management. The London Stock Exchange is rumored to be battling NASDAQ. If the MSE is run by a major exchange, it will boost credibility and increase liquidity...
There are 12 suitors among major exchanges seeking this partnership. This is a huge catalyst for future share price appreciation.
The King of Cashmere
PM Batbold was the former Minister of Foreign Affairs. He studied politics in Moscow and business in London, and is rumored to be one of the richest men in Mongolia, with interests in Cashmere trading and mining.
He struck me as a smart, serious, pro-capitalist leader.
As I write this, he is making the rounds in Canada. There are some 30 Canadian companies with plans to develop mines or oil in Mongolia.
As I said, there were a lot of powerful moneymen at the reception. I spoke to the Chairman of Eurasia Capital, Alisher Djumanov, who is the second largest investor in Mongolia, who was recently on CNBC talking about investment opportunities in Mongolia.
Too big to play
One of the biggest complaints from the group was that Mongolia is so small. The MSE has a market cap of less than one billion; big investors can't put their funds to work.
Luckily for us, that’s not a problem... We are small and nimble enough to dance between the legs of the elephants.
Don’t get me wrong; they are coming — and in droves.
But right now, you can buy stocks in Mongolia with an average price to earnings around four. And I’ll tell you how to do it.
One of my recommendations is up more than 905% this year. Another one is up more than 250% in a month.
Don’t miss this bull market. It will only happen once as this little-known country in Central Asia is revalued to first-world prices.
Sincerely,
Christian DeHaemer
Energy & Capital