Mongolian Market Updates | March 11th

🌄 Good morning!

Mongolian National Mining Association Participates in PDAC 2025, Showcasing Mongolia's Mining Sector to Foreign Investors

The Mongolian National Mining Association (MNMA) took part in the PDAC 2025 event, introducing the opportunities and potential of Mongolia's mining sector to foreign investors. Representatives from CMM also participated in the event.

🗞️ In this week’s newsletter:

• CMM Market Update

• Market News

🟣 CMM Market Update

This week, the Mongolian National Mining Association (MNMA) participated in the Prospectors & Developers Association of Canada (PDAC) 2025 event. This is the 93rd year the event has been held in Canada.

During the event, MNMA presented on the following topics:

• The legal environment for mining investments

• Uranium reserves and future trends

• Current and upcoming gold and other precious metal projects

By participating in this event, Mongolia introduced the investment and cooperation opportunities available in its mining sector to foreign investors and major companies.

With the rising energy demand driven by artificial intelligence, Mongolia’s mining exports are expected to grow. In addition to coal and copper, Mongolia is well-positioned to supply in-demand raw materials such as uranium and lithium.

🟣 CMM Market Update

Money Supply Growth Expected to Slow in 2025

In 2024, money supply growth was strong, but it is expected to slow in 2025-2026. Despite a slowdown in net foreign assets (NFA) and the negative impact of government net borrowing (GNB) on money supply in 2024, credit growth remained robust, keeping money supply high.

In 2025, the NFA of the banking system is expected to decline further, with a reduction in foreign currency inflows due to balance of payments constraints. However, the government's domestic financing needs are likely to rise, increasing the fiscal deficit, which may have a positive impact on money supply growth. At the same time, credit growth is expected to remain high, with business and consumer loans increasing.

🟣 CMM Market Update

👏 LendMN NBFI JSC [MSE:LEND] has achieved a significant milestone, becoming the world's first fintech company to receive the prestigious "Customer Protection Certificate" from the MicroFinance Rating (MFR) Global Rating Agency.

⚡️ The MFR Global Rating Agency evaluates financial institutions based on eight core principles of fairness and transparency, classifying them into Gold, Silver, and Bronze levels. LendMN NBFI JSC has attained the Silver level standard, becoming the first fintech company to earn this prestigious certification.

💯 Listed on the Mongolian Stock Exchange in 2018, LendMN NBFI JSC [MSE:LEND] has set a new benchmark in the financial sector by prioritizing customer protection, enhancing transparency, and adhering to international standards. This achievement represents a significant milestone for both the company and its investors.

✅ The 8 Core Criteria for the Customer Protection Certificate:

1. Appropriate product design and delivery

2. Transparency

3. Fair and Respectful Treatment of Clients

4. Mechanisms for complaint resolution

5. Prevention of over-indebtedness

6. Responsible pricing

7. Privacy of client data

8. Governance and HR

🏛️ Market News

• Premium Nexus JSC [MSE:CUMN] reported a net profit of MNT 48.4 billion last year. The company expanded its store network by 19%, reaching 445 stores, with a 37% increase in net sales. Currently, 397 stores operate in Ulaanbaatar, while 50 stores serve rural areas across 12 provinces, mainly in the central region.

• Darkhan Nekhii JSC [MSE:NEH] presented its 2024 financial report this week. While its revenue declined by 15% to MNT 16.5 billion compared to the previous year, net profit increased by 24% to MNT 6.2 billion.

• A total of 42 companies have announced dividend distributions, with 39 already specifying payout dates. Most dividends will be distributed between late April and the end of June.

🟣CMM Services

Capital Markets Mongolia (CMM) specializes in providing strategic advisory to public companies on optimizing investor relations (IR) and advising on upcoming IPOs, bond issuances, and effective participation in the capital markets with a focus on efficiency and reputation. Additionally, we undertake market research and provide financial PR services.