2014-12-31

Daily Report
Report
Daily
|
NEWS & ANALYSIS

31 December 2014

2015.01.05
Performance

Index

Country

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

Last

Change %
(Day)

14,823.51
17,983.07
2,080.35
4,777.44
14,640.04
6,547.00
5,413.20
23,480.32
182.95

MN
US
US
US
CN
UK
US
HK
ASIA

YTD change %

0.06
-0.31
-0.49
-0.61
-0.16
-1.30
-0.06
-0.09
0.22

-9.07
8.48
12.55
14.39
7.48
-2.99
1.14
0.75
8.81

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)

138.80
2,176.50
73.13
6,398.00
53.66
1,203.28
16.24

YTD change %

0.00
1.98

-26.50
6.02
-46.14
-13.26
-45.48
0.14
-16.59

0.42
-0.85
0.23
-0.39

MONGOLIAN ECONOMIC INDICATORS

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

Date

Last

2014.07
2014.07
2014.11
2014.10
July 31 ,2014

1,398.1
12.00

Last

Yield

YoY change
%
7.0
11.5
-41.5

DEBT MARKET

Amt.
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
Bonds - Coupon

96.25
66.50
93.40
87.15
99.50
99.38
96.80
104.07

Maturity date

7.618
30.637
6.255
7.151
9.211
12.923
11.472
1.018

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

Nikkei 225

7.98

-0.78

DAX

3.93

0.05

Hang Seng

0.75

-0.09
-0.06

S&P/ASX 200

1.14

-1.30
FTSE 100
-0.16

GLOBAL NEWS
Euro Extends Slide on ECB Outlook; Asian Stocks, Oil Slip
The euro slid to an almost nine-year low against the dollar amid prospects the European Central
Bank will embark on large-scale government-bond purchases to ward off deflation. Asian stocks fell
with oil as silver climbed. The MSCI Asia Pacific Index (MXAP) sank 0.7 percent, set for its biggest
drop since Dec. 23 as Japans Topix index slid 1.1 percent after a three-day break. Standard &
Poors 500 Index futures declined 0.4 percent. Crude fell for a third straight trading day, while silver
jumped 1.5 percent. With anti-austerity parties leading in polls before Greeces Jan. 25 snap
election, Der Spiegel magazine reported that Germany views the southern European nations
potential exit from the euro area as manageable. Germany may post a slower rate of inflation today,
as many markets resume trading after New Year holidays.
http://www.bloomberg.com/news/2015-01-04/euro-extends-slide-as-japan-resumes-n-z-stocksadvance.html

7.48

-0.61

14.39

-0.31

MSE - Top20

8.48
0.06

Volume

-9.07
Thousands

DJIA

YTD %

Change % (Day)
MSE TOP 5 MOST TRADED

Trade value '000

SHV

Tavan Tolgoi Tender Negotiation to Begin Today

The negotiation to establish a strategic investment agreement between the Mongolian government
and the three-party consortium of China Shenhua Energy Co Ltd of China, Sumitomo Corporation of
Japan, and Energy Resource LLC of Mongolia will begin on January 5. The Tavan Tolgoi tender
working group had a meeting with representatives from the three-party consortium selected as an
investor to cooperate on operating the Tavan Tolgoi deposit, on December 24. At the meeting, the
sides agreed to begin the negotiations on January 5, and pledged to seek all possible means to
successfully carry out the investment and development of the Tavan Tolgoi coal deposit. Head of the
working group and Minister of Mongolia M.Enkhsaikhan, Minister of Mining R.Jigjid, Minister of
Finance J.Erdenebat, and Minister of Roads and Transportation N.Tumurkhuu met with the
consortiums representatives. Representing the consortium, CEO of Energy Resources LLC
G.Battsengel, Deputy CEO of Energy Resources LLC L.Oyunbat, Board Chairman of China Shenhua
Overseas Development and Investment Co., Ltd Shao Junjie, and General Manager of Sumitomo
Corporations Ulaanbaatar Office Hiroto Fujiwara attended the meeting. M.Enkhsaikhan remarked,
The Tavan Tolgoi project requires about four billion USD in investment. In this respect, it is a worldscale project. The selected investors representation of three nations Mongolia, China, and Japan
increases the projects value. In conducting the negotiation, the parties agreed to adhere to a
mutually beneficial strategy, basing the negation on trust, discussing all problematic aspects of the
project, and striving to find cooperative and creative solutions to each issue. Members of the working
group informed the representatives of the criteria to adhere to in the negotiations, including keeping
the status of the domestic company as a majority stakeholder throughout the entire project, retaining
the ownership of the deposit by the Mongolian government, being able to sell the deposits products
to Japanese and other foreign markets, contributing to regional development, respecting and
contributing to the development of traditional Mongolian culture, and having no harmful effects on the
environment.
http://ubpost.mongolnews.mn/?p=12921

-2.99

S&P/TSX comp
Nasdaq

MONGOLIAN RELATED NEWS

Viking Mines Reports Results From Drilling Programme
Viking Mines Ltd has received results from its recently completed drilling programme at the Berkh
Uul coal project in northern Mongolia. The drilling programme, designed to infill and extend the
existing drill coverage, commenced in the northeast of the licence area, where there is pre-existing
drilling within the confines of the current 38 million t resource. The drilling progressed to the south,
targeting extensions to the deposit to add to the current resource. A total of 1064.5 m drilled were
drilled in 18 holes. The drilling tested the near surface, shallow west dipping eastern limb of a broad
south plunging synclinal structure, in which two main coal seams (Seams 1 and 2) are located. Holes
were drilled using open hole precollars, with PQ diamond tails through the target coal bearing zones,
on a nominal 500 m line spacing. All holes were down-hole surveyed for geophysical and directional
data, with all drill collars surveyed to sub-metre accuracy. Geological logging was completed by
Viking geologists under the supervision of RSC Consultants. A total of 87 samples were collected
from PQ drill core for coal analysis at Bureau Veritas laboratory in Ulaanbaatar. Note that the
sampling of drill core was selective in that no inter-seam waste was sampled or analysed, with a
minimum coal sampling interval of 0.2 m and maximum of 2 m down hole.
http://www.unuudur.com/?p=30482

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

50

BAN

6,000

4,000

0.00%

87

4,000

2,000
0.44%

October-14

July-14

August-14

May-14

June-14

April-14

March-14

January-14

October-13

July-13

August-13

May-13

December-14

15%

November-14

10%

September-14

5%

February-14

0%

June-13

4.17%
300

December-13

200

November-13

100

September-13

April-13

239

0
March-13

GOV

2,000

0
January-13

189

February-13

HBO

5 January 2015

MONGOLIAN RELATED COMPANIES

YTD %

Trade value
000 USD

Market cap mln

USD/

52w high

52w low

Currency
cross

2.03

-8.79

8,217.5

6,057.02

4.36

2.75

1.00

3.15

36.34

4,885.3

1,201.18

6.90

3.16

1.16

0.345

0.00

-50.74

51.2

411.93

0.84

0.32

7.76

CAD

1.100

-3.51

-14.73

1,010.0

480.03

1.95

1.02

1.16

1733 HK Equity

HKD

0.250

-1.96

-48.98

7.1

121.60

0.55

0.25

7.76

MoEnCo

276 HK Equity

HKD

0.390

0.00

-59.88

0.2

84.92

1.06

0.38

7.76

SouthGobi Resources

1878 HK Equity

HKD

3.700

0.00

-46.22

0.0

104.33

7.19

3.49

7.76

Central Asia Metals PLC

CAML LN Equity

GBp

173.000

-0.86

22.70

15,073.2

300.09

190.00

141.00

0.64

Mongolia Investment Group Ltd

402 HK Equity

HKD

0.300

-4.76

3.45

937.4

259.16

0.38

0.16

7.76

Mongolia Growth Group

YAK CN Equity

CAD

0.750

-2.60

-66.96

43.1

22.55

3.07

0.72

1.16

61 HK Equity

HKD

0.146

0.00

-19.78

2.4

113.58

0.21

0.10

7.76

Guildford Coal Ltd

GUF AU Equity

AUD

0.036

-2.70

-56.55

23.1

27.13

0.11

0.03

1.22

Origo Partners PLC

OPP LN Equity

GBp

6.125

0.00

-16.95

20.0

34.03

8.25

6.13

0.64

Entree Gold Inc

ETG CN Equity

CAD

0.205

-2.38

-33.87

6.8

25.99

0.52

0.18

1.16

Aspire Mining Ltd

AKM AU Equity

AUD

0.033

0.00

-41.07

0.6

19.07

0.07

0.03

1.22

Prophecy Coal Corp

PCY CN Equity

CAD

0.055

0.00

-31.25

8.7

11.95

0.11

0.04

1.16

FeOre Ltd

FEO AU Equity

AUD

0.026

0.00

-36.59

1.2

11.30

0.08

0.02

1.22

Petro Matad Ltd

MATD LN Equity

GBp

2.250

0.00

-40.00

30.3

9.79

11.50

2.00

0.64

Xanadu Mines Ltd

XAM AU Equity

AUD

0.100

-16.67

100.00

3.7

34.85

0.18

0.03

1.22

Haranga Resources Ltd

HAR AU Equity

AUD

0.014

0.00

-77.42

5.7

3.93

0.09

0.01

1.22

Wolf Petroleum Ltd

WOF AU Equity

AUD

0.045

0.00

-35.71

6.0

10.87

0.08

0.03

1.22

Manas Petroleum Corp

MNAP US Equity

USD

0.090

-10.35

31.24

21.1

15.01

0.17

0.04

1.00

Khan Resources Inc.

KRI CN Equity

CAD

0.450

9.76

57.89

26.9

26.45

0.45

0.20

1.16

East Asia Minerals Corp

EAS CN Equity

CAD

0.010

0.00

-75.00

1.0

0.91

0.11

0.01

1.22

Erdene Resource Development Corp

ERD CN Equity

CAD

0.105

0.00

-25.00

1.1

7.46

0.26

0.09

1.16

Modun Resources Ltd

MOU AU Equity

AUD

0.003

0.00

-25.00

4.2

4.37

0.01

0.00

1.22

Kincora Copper Ltd

KCC CN Equity

CAD

0.025

25.00

0.00

0.3

6.68

0.09

0.02

1.16

General Mining Corp Ltd

GMM AU Equity

AUD

0.005

0.00

-70.59

0.0

0.55

0.02

0.01

1.22

Draig Resources Ltd

DRG AU Equity

AUD

0.013

0.00

-62.86

1.5

0.71

0.04

0.01

1.22

Newera Resouces Ltd

NRU AU Equity

AUD

0.002

0.00

-66.67

5.3

2.00

0.01

0.00

1.22

Blina Minerals NL

BDI AU Equity

AUD

0.001

0.00

0.00

2.5

1.32

0.00

0.00

1.22

Name

Sym

Currency

Last

Turquoise Hill

TRQ US Equity

USD

3.010

Centerra Gold

CG CN Equity

CAD

5.890

MMC

975 HK Equity

HKD

Denison Mines Corp

DML CN Equity

Winsway Coking Coal Holdings Ltd

North Asia Resources Holdings Ltd

30 day graphic

Chg day
%

Source: Bloomberg

MONGOLIAN STOCK MARKET

4 January 2015
TOP20 index

11

JSC's

was

14,823.51

1,265

shares

worth

Change day

Company name

Trade volume

Trade value
'000

Last

Chg day

Chg day %

SHG

220

1,298.00

5900

0.00

0.00%

MIE

26

387.40

14900

0.00

0.00%

GOV

32

239.15

7500

300.00

4.17%

HBO

325

189.34

582.58

2.58

0.44%

BAN

30

86.97

2899

0.00

0.00%

SHV

10

49.99

4999

499.00

11.09%

HGN

500

47.50

95

0.00

0.00%

EER

17

45.88

2699

349.00

14.85%

TTL

13.20

4400

-99.00

-2.20%

MRX

100

9.00

90

0.00

0.00%

MMX

7.40

3700

203.00

5.80%

Gov. Sec - 15.653% - 12 week

61,178

5,905,084

96523

2.37

mln

MNT

0.06%

YTD

-9.07%

Buy
volume

Buy price Sell price

have

Sell volume

been

traded.

31 December 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
2014.09
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
3250 for you of the securities/transactions before investing
independently determine, with your own advisors, the appropriateness
or transacting.

93.398