Mongolian Market Updates | September 10, 2024

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🌅 Good morning,

In the first half of 2024, the mining sector contributed ₮6.37 trillion to the state budget, marking a 73% increase compared to the same period last year. Key factors driving this increase include:

• Enhanced role of commodity exchanges in trading mining products, aligned with the rising valuation of mining products based on international market prices;

• Enhanced governance and transparency in state-owned companies, focusing profitability;

• Increased capacity at border ports;

• The ongoing operation of the Oyu Tolgoi underground mine, leading to higher concentrate production.

Moreover, selling mineral products through exchanges at international market price has positively impacted product value.

In this week’s newsletter:

• Mongolia Investment Forum in Singapore

• Market News

• “Mining Week x MinePro 2024” event

👀 Mongolia Investment Forum in Singapore: Impact Investing

Organized by Capital Markets Mongolia (CMM) in collaboration with the Business Council of Mongolia, the Mongolia Investment Forum will take place on 5 November 2024, in Singapore.

The forum aims to bring together leading investors, policymakers, and business leaders to examine the evolving investment landscape in Mongolia.

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🏦 Market News

• Mongolia's government debt reached $7.6 billion, which represents 68.7% of the GDP (current US$).

• The Mongolian Stock Exchange [MSE: MSE] will choose its next management team through an international open tender. This process will involve bringing on board not just the executives but the entire management team.

• On September 3 and 4, a total of 177,500 shares of Invescore NBFI [MSE: INV] were traded in a block trade, amounting to ₮1.3 billion.

🔔 Mining Week x MinePro 2024 🔔

Mineral exports, especially coal, copper, and iron ore, constitute over 90% of Mongolia's total exports, with coal being the largest commodity traded with China. In 2023, coal made up 63.7% of Mongolia's exports to China, marking a 6.8% increase from the previous year and a 19.2% rise since 2019.

In the M-OTC market, seven mining companies collectively raised 506.49 billion MNT. A significant example is Khan-Altai Resources LLC, which issued bonds worth 50 billion MNT in 2022, offering two interest rate options. The company raised 39.2 billion MNT through a fixed-rate bond at 18% and an 8%+ options yield on dollar bonds. Another case from 2022 is Huren Tolgoi Coal Mining LLC, which issued a US$10 million bond, offering 16% interest on MNT bonds and up to 9% on dollar bonds tied to the MNT.

The 3rd annual "Mining Week x MinePro 2024” International Mining Exhibition & Convention will bring together key stakeholders, including mining project owners, investors, suppliers, and service providers.

CMM, in collaboration with the Mongolian Mining Association, is co-organizing the Mining Finance Day on October 5th. This event will focus on financing strategies for mining projects and suppliers, discussing traditional and innovative methods involving local and international financial institutions.

For more detailed information about the event, please click HERE.

🟣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.