Mongolian Market Updates | September 3, 2024

🌅 Good morning,

MSM Group, one of the leading conglomerates in Mongolia, has announced the strategic sale of a majority stake to Jebsen & Jessen Group, enhancing Jebsen & Jessen's geographic expansion and securing MSM's long-term growth in Mongolia. This acquisition not only ensures the continuity of operations under CEO Mark Gabel but also leverages Jebsen & Jessen's extensive resources for future growth while maintaining MSM's identity and commitment to its employees.

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

The Mongolia Investment Forum in Singapore, presented by CMM, on November 4 and 5, 2024.

This exclusive event will bring together leading investors, policymakers, and business leaders to delve into Mongolia's dynamic landscape of impact investing.

Join us to dive into engaging discussions, uncover promising investment opportunities, and forge meaningful connections.

🏦 Market News

• The revenue of Mongolian Mining Corporation [HKEX:0975] reached $541.1 million, resulting in a net profit of $133 million. Stock prices are up more than 8% since the report.

• The Mongolian Stock Exchange [MSE: MSE] made a profit of ₮17.8 billion in the first half of 2024, which is 92% more than the net profit of 2023.

• TML Plastic, a manufacturer of recycling plastic bottles, is set to issue USD green bonds as Mongolia's first non-financial sector issuer.

CMM is presenting an overview of the Mongolian economy and capital market for August.

In this month’s market update:

• Mongolia’s new coalition government action program for 2024-2028;

• Highlights from the capital markets;

• Rare earth in Mongolia;

🔔 Mining Week x MinePro 2024 🔔

Mongolia, with an estimated 3 million tons of rare earth reserves across seven deposits, has the potential to rank among the top ten countries for rare earth element resources. According to the U.S. Geological Survey, global reserves of rare earth elements are estimated at 130 million tons. China is leading, followed by Vietnam, Russia, Brazil, and India in the top five. Mongolia's significant reserves position it alongside the U.S. and Greenland as a key player in the rare earths market.

Mongolia has a long history of uranium exploration, starting with joint Russian and Mongolian efforts in the 1950s. As of 2021, Mongolia’s uranium resources are estimated at 6.1 million tonnes, with 192.2 thousand tonnes of registered reserves, making up 3.2% of the global total, while pilot production is ongoing amidst Kazakhstan's dominance in the market. In 2023, the country signed a landmark $1.7 billion agreement with French government-owned Orano Mining to establish its first uranium mining and processing venture, with ongoing discussions.

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.