2014-11-21

Daily Report
Report
Daily
|
NEWS & ANALYSIS

21 November 2014

2014.11.21
Performance

Index

Last

Country

MSE - Top20
DJIA
S&P 500
Nasdaq
S&P/TSX comp
FTSE 100
S&P/ASX 200
Hang Seng
Bloomberg/asia.pac

Change %
(Day)

14,909.10
17,719.00
2,052.75
4,701.87
15,075.18
6,678.90
5,310.90
23,353.72
173.95

MN
US
US
US
CN
UK
US
HK
ASIA

YTD change %

-0.19
0.19
0.20
0.56
0.63
-0.26
-0.10
0.02
0.19

-8.54
6.89
11.06
12.58
10.67
-1.04
-0.77
0.20
3.46

COMMODITY PRICES

Performance

Last
USD

Commodity
Prime Coking Coal /Tianjin
Zinc Spot /LME
Iron Ore 58%/Tianjin
Copper Spot /LME
Oil
Gold Spot /LME
Silver Spot /LME

Change %
(Day)

140.53
2,245.00
80.09
6,731.75
76.50
1,193.45
16.23

YTD change %

0.00
0.04

-26.50
9.35
-41.02
-8.73
-22.27
-0.68
-16.65

-0.34
0.86
-0.03
-0.28

MONGOLIAN ECONOMIC INDICATORS

Indicator
RGDP /bln. MNT/
NGDP /bln.MNT/
Inflation
Foreign reserve /mln. USD/
Policy rate

Date

Last

2014.07
2014.07
2014.10
2014.09
July 31 ,2014

9,857
6,635

YoY change
%
5.3
14.6
12.1
-42.4

1,542.7
12.00

DEBT MARKET

Amt.
Bonds - Coupon
issued mln
USD
DBM bond - 5.75
580
MMC bond - 8.875
600
Mongol 2018 - 4.125
500
Mongol 2022 - 5.125
1,000
TDBM 2015 - 8.5
300
TDBM 2015 - 12.5
25
TDBM 2017 - 10 dim sum
115
DBM bond - 1.52 sam.
290

Last

Yield

97.75
68.88
95.28
89.48
99.88
97.25
97.91
103.21

Maturity date

6.809
27.795
5.571
6.762
8.633
15.339
10.866
1.139

3/21/2017
3/29/2017
1/5/2018
12/5/2022
9/20/2015
11/17/2015
1/21/2017
12/25/2023

INDICES CHANGE
5.40

Nikkei 225
-0.75
DAX

0.12

Hang Seng

FTSE 100

0.20

0.02

-0.10

-0.77

-1.04

-0.26

S&P/TSX comp

0.63

Nasdaq

0.56

DJIA

10.67

12.58

0.19

6.89

-0.19

MSE - Top20

-8.54

Change % (Day)

GLOBAL NEWS
Asian Stocks Slip on Japan While Won Rallies With Crude
Asian stocks fell, as Japanese shares led the regional index to its biggest weekly loss since midOctober with Prime Minister Shinzo Abe to dissolve parliament today ahead of elections. Crude oil
climbed for a second day as the Korean won rallied with copper futures. The MSCI Asia Pacific Index
lost 0.1 percent by 9:58 a.m. in Tokyo, headed for a 1.8 percent drop this week. Japans Topix index
(TPX) fell 0.3 percent as the yen pared its fifth weekly decline. The won climbed 0.4 percent from an
almost 15-month low and Malaysias ringgit strengthened before inflation data. Standard & Poors 500
Index futures lost 0.1 percent after the gauge rose to a record. Oil in New York climbed 1 percent to
$76.63 a barrel while copper futures advanced 0.2 percent. Chinese e-retailer Alibaba Group Holding
Ltd. sold $8 billion of debt in the U.S. at yields that were lower than what was originally offered. Abe
will dissolve the lower house of parliament today for the vote to be held in mid-December. His cabinet
will resign as part of procedures required in advance of the election.
http://www.bloomberg.com/news/2014-11-20/yen-heads-to-weekly-drop-as-gold-gains-u-s-stocksrally.html
Copper Miners Strike Optimistic Note On Medium-Term Prices
Copper prices could be held down by rising supply from mines in the next couple of years but are set
to surge after that due to a dearth of monster projects and bottlenecks at refineries, senior executives
at top copper producers said on Wednesday. Widely seen as a barometer for economic growth,
copper prices have shed around 10 percent this year as the global economy struggles to recover from
the 2008/09 financial crisis. Expectations of improving supply, financed by coppers swing to record
highs above $10,000 in early 2011 and now feeding into the market, have soured the price outlook.
Goldman Sachs this week slashed its 2015 copper price forecast to $6,217 per ton from $6,400.
Growth in demand of 3 to 4 percent annually over the next five years meant 4 to 5 million tonnes of
new supply would have to be found, the equivalent of 10 to 12 big mines, he told a Metal Bulletin
copper conference in Shanghai. Three month copper on the London Metal Exchange traded at
$6,643 a tonne on Wednesday. Prices could hit a record $5 a pound ($11,000 a tonne) over the next
Volume

YTD %

MSE TOP 5 MOST TRADED

Trade value '000

MNH

SouthGobi Resources Delays China Investment Corporation Interest Payment and Continues
to Seek Additional Funding
HONG KONG, CHINA, Nov 20, 2014 SouthGobi Resources Ltd. (is delaying the payment of the
November 2014 installment of cash interest due on the secured convertible debenture it entered into
with a wholly owned subsidiary of China Investment Corporation ("CIC") and continues to seek
additional funds. In November 2009, the Company entered into a financing agreement with a wholly
owned subsidiary of the CIC for $500 million in the form of a secured, convertible debenture bearing
interest at 8.0% (6.4% payable semi-annually in cash and 1.6% payable annually in the Company's
shares) with a maximum term of 30 years. The CIC convertible debenture is secured by a charge
over the Company's assets and certain subsidiaries. On March 29, 2010, the Company exercised its
right to call for the conversion of up to $250.0 million of the CIC convertible debenture into
approximately 21.5 million shares. As at November 20, 2014, the CIC owned, through its indirectly
wholly owned subsidiary, approximately 16.5% of the issued and outstanding common shares of the
Company. On November 19, 2014 the Company was due to pay approximately $8.1 million in cash.
The Company has been advised by CIC that CIC will extend the cash interest payment date to
December 1, 2014. As at November 20, 2014, the Company had cash of $4.9 million and continues
to seek additional funding in order to meet its interest obligations under the CIC convertible
debenture. In the event the Company fails to make the CIC convertible debenture interest installment
when due on December 1, 2014, this would result in an event of default under the CIC convertible
debenture and CIC would have the right to declare the principal and accrued interest owing
thereunder immediately due and payable, which could result in voluntary or involuntary proceedings
involving the Company as discussed under the heading Risk Factors in the Management Discussion
and Analysis issued on November 10, 2014 and available on SEDAR at www.sedar.com.
http://www.marketwatch.com/story/southgobi-resources-delays-china-investment-corporation-interestpayment-and-continues-to-seek-additional-funding-2014-11-20-61734525

Thousands

S&P/ASX 200

-0.71

MONGOLIAN RELATED NEWS

Mongolia's Hunnu Air returns two A319s to lessor
Hunnu Air (MR, Ulaanbaatar) has returned both of its A319-100s to their lessor following a downturn
in Mongolia's air travel market. The jets, having been delisted from the Mongolian registry, have now
been re-registered as N175AG (cn 1750) and N176AG (cn 1706), on the US Federal Aviation
Administration's (FAA) books. Hunnu continues to operate three Fokker 50s on domestic as well as
regional services to China.
http://www.ch-aviation.com/portal/news/32995-mongolias-hunnu-air-returns-two-a319s-to-lessor

MSETOP Index

16,000

20,000

14,000

18,000
16,000

12,000

14,000

10,000

12,000

8,000

10,000

6,000

8,000

33

JTB

6,000

4,000

4.39%

36

4,000

2,000

5%

10%

15%

June-14

May-14

April-14

March-14

January-14

October-13

August-13

July-13

June-13

February-14

0%

December-13

-5%

November-13

1,000

May-13

-1.14%
500

September-13

April-13

200

0
January-13

GOV

2,000

0
March-13

12.44%

894

February-13

HBO

21 November 2014

MONGOLIAN RELATED COMPANIES

Name

Sym

Currency

30 day graphic

Last

Chg day %

Trade value 000 Market cap mln

52w high
USD
USD/

YTD %

52w low

Currency
cross

Turquoise Hill

TRQ US Equity

USD

3.470

-1.70

5.15

8,126.1

6,982.68

4.36

2.93

1.00

Centerra Gold

CG CN Equity

CAD

5.820

2.65

34.72

8,200.7

1,216.38

6.90

2.82

1.13

MMC

975 HK Equity

HKD

0.700

0.00

-32.04

702.5

334.38

1.39

0.48

7.76

Denison Mines Corp

DML CN Equity

CAD

1.320

2.33

2.33

1,073.6

590.19

1.95

1.02

1.13

Winsway Coking Coal Holdings Ltd

1733 HK Equity

HKD

0.355

0.00

-27.55

93.8

172.70

0.59

0.31

7.76

276 HK Equity

HKD

0.173

0.00

#N/A N/A

302.3

#VALUE!

#N/A N/A

#N/A N/A

7.76

MoEnCo
SouthGobi Resources

1878 HK Equity

HKD

3.980

0.00

-42.15

80.7

96.12

9.46

3.78

7.76

CAML LN Equity

GBp

155.250

0.24

10.11

245.4

271.30

190.00

141.00

0.64

402 HK Equity

HKD

0.260

0.00

-10.34

684.0

224.65

0.38

0.16

7.76

YAK CN Equity

CAD

1.220

1.67

-46.26

19.8

37.59

3.07

1.15

1.13

61 HK Equity

HKD

0.154

0.00

-15.38

5.5

119.82

0.21

0.10

7.76

Guildford Coal Ltd

GUF AU Equity

AUD

0.041

5.13

-50.52

1.9

29.90

0.11

0.04

1.16

Origo Partners PLC

OPP LN Equity

GBp

7.188

0.00

-2.54

2,493.2

40.24

8.25

6.63

0.64

Entree Gold Inc

ETG CN Equity

CAD

0.270

10.20

-12.90

0.7

35.09

0.52

0.21

1.13

Aspire Mining Ltd

AKM AU Equity

AUD

0.040

-2.44

-28.57

15.0

24.28

0.08

0.03

1.16

Prophecy Coal Corp

PCY CN Equity

CAD

0.065

0.00

-18.75

3.1

14.47

0.11

0.04

1.13

FeOre Ltd

FEO AU Equity

AUD

0.025

0.00

-39.02

0.6

11.41

0.08

0.03

1.16

MATD LN Equity

GBp

3.125

0.00

-16.67

0.0

13.71

11.50

2.00

0.64

Xanadu Mines Ltd

XAM AU Equity

AUD

0.105

-12.50

110.00

5.0

22.06

0.18

0.03

1.16

Haranga Resources Ltd

HAR AU Equity

AUD

0.015

0.00

-75.81

0.7

3.13

0.09

0.01

1.16

Central Asia Metals PLC

Mongolia Investment Group Ltd
Mongolia Growth Group
North Asia Resources Holdings Ltd

Petro Matad Ltd

Wolf Petroleum Ltd

WOF AU Equity

AUD

0.045

0.00

-35.71

1.6

11.42

0.09

0.03

1.16

MNAP US Equity

USD

0.086

0.00

25.55

3.0

14.36

0.17

0.04

1.00

KRI CN Equity

CAD

0.380

0.00

33.33

146.5

22.89

0.45

0.18

1.13

Voyager Resources Ltd

VOR AU Equity

AUD

0.001

0.00

-75.00

0.9

1.51

0.01

0.00

1.16

East Asia Minerals Corp

EAS CN Equity

CAD

0.015

0.00

-62.50

0.0

1.43

0.11

0.02

1.16

Erdene Resource Development Corp

ERD CN Equity

CAD

0.100

0.00

-28.57

7.0

6.77

0.26

0.08

1.13

Modun Resources Ltd

MOU AU Equity

AUD

0.004

0.00

0.00

1.7

6.12

0.01

0.00

1.16

Kincora Copper Ltd

KCC CN Equity

CAD

0.025

0.00

0.00

13.5

6.85

0.09

0.02

1.13

General Mining Corp Ltd

GMM AU Equity

AUD

0.008

0.00

-52.94

0.7

0.93

0.02

0.01

1.16

Draig Resources Ltd

DRG AU Equity

AUD

0.018

0.00

-48.57

0.2

1.03

0.04

0.01

1.16

Newera Resouces Ltd

NRU AU Equity

AUD

0.001

0.00

-83.33

0.0

1.02

0.01

0.00

1.16

BDI AU Equity

AUD

0.002

0.00

50.00

1.3

1.92

0.00

0.00

1.16

Manas Petroleum Corp

Khan Resources Inc.

Blina Minerals NL

Source: Bloomberg
MONGOLIAN STOCK MARKET
20 November 2014

12

JSC's

TOP20 index

was

14,909.10

Company name

Trade volume

Trade value
'000

3,638

shares

worth

Change day

Last

Chg day

Chg day %

4.34

mln

MNT

-0.19%

YTD

-8.54%

Buy
volume

Buy price

have

Sell price

been

Sell volume

APU

36 133

3700

0.00%

210

3650

3700

EER

365 858

2350

0.00%

35

2350

2380

50

GOV

27 200

7400

-85

-1.14%

7400

7500

150

HBO

1,503 894

594.8

66

12.44%

629

529

560

500

JTB

416 36

85.4

4.39%

1438

84

86.4

1900
17

1464

MNH

8 33

4099

0.00%

18

3600

4099

NEH

52 858

16500

-1000

-5.71%

50

15000

16500

42

OLL

1 0

111

0.00%

1500

95

111

11902
19000

RMC

1,000 100

100

0.00%

300

96

100

ERS

50 180

3600

100

2.86%

MBG

88 704
92 348

8000

0.00%

9800

100

3788

-62

-1.61%

131

3750

3800

40

MMX

traded.

21 November 2014

Investment Banking Division of Golomt Bank

The principal activities of Investment Banking Division constitute structuring, sourcing, negotiating and closing debt and equity
financings as well as the provision of incisive advisory services for private and public companies as well as institutions, public sector
agencies and authorities.
0
Our vision is to fuel the profitable
growth of our valued clients by providing the highest-quality investment banking services, and in so
doing create an environment which will lead to long term, mutually beneficial relationships. We strive to achieve these lasting
relationships by matching each client assignment with the collaborative expertise of the Banks team of seasoned banking and
investment professionals.
Contact
Sukhbaatar Square, Ulaanbaatar 210620A, Mongolia
Fax: +976-70117676 /1402/
E-mail: ibd@golomtbank.com
Website: www.golomtbank.com

Disclaimer
2013.06
2702.1
This
document has
been prepared by the investment banking division of Golomt Bank for information purpose only. The views
2013.06are the7591
expressed
views of the analyst and are subject to change based on market and other conditions and factors. The
information provided does not constitute investment advice or other recommendations and should not be relied on as such. It
should
not be considered a solicitation to buy or an offer to sell a security or to pursue any trading or investment strategy. All
13606.65
material, including information sourced from or attributed to Golomt Bank, has been obtained from sources believed to be
reliable, but its accuracy is not guaranteed. Past performance is no guarantee for future results. Accordingly you must
3700 for you of the securities/transactions before investing
independently determine, with your own advisors, the appropriateness
or transacting.