ecmgl weekly december 9-15

8/13/2019 ECMGL Weekly December 9-15

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Politics and Economy Major Statistical Data of November 2013 ADB Supports Urban Development Foreign Currency Based Payments are No Longer Allowed

Financial Markets MSE Top -20 Declined by 2.08% MNT Appreciated by 3%

Commodity Markets Mining Ministry to Cooperation with Association of Fluorspar

Explorers

Corporate News TDB of Mongolia Expands its Partnership Network

MSE TOP-20 Index (6 months)

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Total Trading Volume, US$ Top-20 Index

Source: MSE

Mongolia Weekly

December 9-15, 2013

Selected Worldwide Indices

Index Closeprice

Performancew-o-w Y

MSE TOP 20 15389.48 -2.08% -1Silk Road CompositeIndex 390.82 -5.02% -18Silk Road Mongolia 231.07 0.31% -57Silk Road Hong Kong 12.99 -1.14% -5Silk Road Australia 169.32 -1.18% -65Silk Road Iraq 1323.06 1.36% 22Silk Road Iraq OilIndex 1525.67 1.20% 29Silk Road MyanmarIndex 1530.72 1.12% -5Silk Road CentralAsia Index 383.47 -8.29% -2MSCI FM 584.78 0.82% 1MSCI EM 990.48 -1.17% Dow Jones 15755.36 -1.65% 20FTSE 100 6439.96 -1.71% Nikkei 15403.11 0.67% 48Hang Seng 23245.96 -2.09% 2

Shanghai 2406.64 -1.86% -KASE 906.68 -1.35% -RTS 1391.85 0.09% -

Top Movers on MSE

StockCloseprice,MNT

Performance

w-o-w Y

Best performers Munkh Undes 2,112 14.97% 120Khasu Mandal 2,300 11.11% 70UB BUK 35,000 9.38% 19Gazar Suljmel 32,000 6.67% 120Mongolia DevelopmentResources

712 6.63% -2

Worst performers BDSec 2,226 -10.96% -3Olloo 120 -13.94% -1Shivee Ovoo 6,000 -14.29% -40Solongo Express 2,295 -15.00% -45Darkhan Guril Tejeel 770 -23.00% -48

Major Commodities

Commodity Last price Performance

w-o-w YCopper $/t 7276.5 2.20% -Gold $/oz 1238.8 0.79% -2Coal1 $/t 109.3 0.00% -Iron ore 2, $/t 153.3 0.00% -Uranium $/lp

35.75 0.00% -2Crude oil $/bbl 96.6 -1.08%

MNT vs Major Currencies

Name Rate 3,MNT

MNT app(-) or dew-o-w Y

US$ 1,671.93 -2.98% 2Euro 2,301.24 -2.23% 2Japanese Yen 16.14 -4.33% -Chinese Yuan 275.34 -2.81% 2Russian Rouble 50.92 -2.60% 1

1 Qinhuangdao, Steam Coal2 China Import Price Qingdao Port3 Central Bank Rates

Source: Bloomberg, MSE, Eurasia Capital
http://d/ECM/Morning%20note/ECM_Digest/Index&Commodities/2010.05.28.Ind.xlsx%23Indices!A1http://d/ECM/Morning%20note/ECM_Digest/Index&Commodities/2010.05.28.Ind.xlsx%23Indices!A1http://d/ECM/Morning%20note/ECM_Digest/Index&Commodities/2010.05.28.Ind.xlsx%23Indices!A1http://d/ECM/Morning%20note/ECM_Digest/Index&Commodities/2010.05.28.Ind.xlsx%23Indices!A1http://d/ECM/Morning%20note/ECM_Digest/Index&Commodities/2010.05.28.Ind.xlsx%23Indices!A1http://d/ECM/Morning%20note/ECM_Digest/Index&Commodities/2010.05.28.Ind.xlsx%23Indices!A1http://d/ECM/Morning%20note/ECM_Digest/Index&Commodities/2010.05.28.Ind.xlsx%23Indices!A1http://d/ECM/Morning%20note/ECM_Digest/Index&Commodities/2010.05.28.Ind.xlsx%23Indices!A1http://d/ECM/Morning%20note/ECM_Digest/Index&Commodities/2010.05.28.Ind.xlsx%23Indices!A1http://d/ECM/Morning%20note/ECM_Digest/Index&Commodities/2010.05.28.Ind.xlsx%23Indices!A1


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Mongolia Weekly ( December 9-15, 2013) December 16(Monday)

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POLITICS AND ECONOMY

Major Statistical Data of November 2013Unemployment Rate. The number of unemployed reached 42.9 thousand at the end of November 2013,reflecting an increase of 2.6 thousand or 6.3% compared to same period of the previous year. NationalLabor Force Survey of 3Q indicated that 1176 thousand people (52.6% male and 47.4% female) areeconomically active with age of over 15. The Labor Force Participation rate was 62.1% in national level,54.8% in urban and 74.9% in rural areas.

Consumer Price Index. The national CPI increased by 1.3% in November against the previous month. Itwas mainly due to enhanced of 1.4% in food and non-alcoholic beverages, 2.3% in clothing, footwearand cloth, and 0.7% in housing, water, electricity and fuels.

External Trade Balance. In the first eleven months of 2013, Mongolia traded with 132 countries, wheretrade turnover reached US$9,716.4 mn - exports and imports made up US$3,861.2 mn and US$5,855.3mn respectively. Total external trade turnover decreased US$582.5 mn or 5.7% compared to sameperiod of 2012 - import and exports down by US$413.8 mn (6.6%) and US$168.7 mn (4.2%)correspondingly. Main export goods were mineral products, textile articles, natural or cultured stones,precious metals, jewelries, coins, raw and processed hides, skins, fur and articles, animal origin products,all of which amounted for 96.8% of the total export .

Money Supply. The Bank of Mongolia reported that- money supply (broad money or M2) at the end of November 2013 reached MNT9,108.7 bn,

growing MNT392.8 bn or 4.5% against the previous month.The money supply went up byMNT2,075.5 bn (29.5%) compared against the same period of 2012.

-

loans outstanding amounted to MNT10,822.4 bn, going up by MNT333.6 bn (3.2%)compared against the previous month, and rising MNT3,954.6 bn or 57.6% against the sameperiod of 2012.

- in securities trading of the first eleven months, the 64.5 mn shares valued at MNT95.3 bnwere traded. The securities trading decreased MNT48.6 bn (33.8%) and shares went downby 67.8 mn or 51.3% compared to the same period of 2012.

Industrial Output. The total industrial output increased by MNT254.6 bn (12.4%) to MNT2307.2 bn (at2005 constant prices) against the previous year. Main causes were:

- 1.9-53.2% increases in mining and quarrying products such as coal, copper concentrate with

35%, gold.- 0.1%-8.5 times augment in industrial main products of manufacturing sector such as cakes,

wines, soft drinks, kinds of sausage, bakery products, metal foundries, combed down,sheepskin coat, vacuum windows and doors, printing plastic cards.

Source: National Statistical Committee


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ADB Supports Urban DevelopmentThe Asian Development Bank (ADB) will grant Mongolia a financing for implementing a program onredeveloping the Ger areas of Ulaanbaatar. On December 9, financial framework document for theUlaanbaatar Urban Services and Ger Areas Development Investment Program was signed by MrN.Batbayar, the Minister of Economic Development, and by Mr Robert Schoellhammer, the ADBCountry-Director for Mongolia. The nine-year program is to improve quality and coverage of urbaninfrastructure and basic services such as roads improvement, water supply and sewerage system, toexpand the heating service, and to run a sustainable and inclusive process of urban development formiddle Ger areas. According to news released by the Press and Public Division of Parliament , theprogram will be financed by the ADB through its multi-tranche financing facility (MFF) in three tranches.The MFF is estimated to be US$320 mn USD, of which US$224 mn will be financed by ADB and the restby the Mongolian government.

Foreign Currency Based Payments are No Longer AllowedNational and foreign entities holding mining and exploration licenses in Mongolia have begun to pay anannual rent to the Mineral Resource Authority of Mongolia. The Ministry of Finance has promptedthese entities and companies to comply with Mongolian currency law, which states that all businessesand agencies must do business in Mongolian tugriks. Transactions must not be carried out in foreigndenominated or foreign currency based rates. The Mongolian currency law passed in 2009 byParliament; therefore, the Ministry of Finance has announced that the US$ or any other foreign currencybased rates for special license payments will not allowed as of January 1st, 2014, reported onwww.news.mn.


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FINANCIAL MARKETS

MSE Top -20 Declined by 2.08% Last week, the benchmarkindex, MSE Top-20 declined by2.08% w-o-w and closed at15,389.48 on Friday, December13, 2013 compared to 15,715.73a week prior. 66.

The major stocks that grewwere only Tavan Tolgoi (TTL)0.45% to MNT5,535 andMongolian DevelopmentResources (MDR) 6.63% toMNT712. Meanwhile, 10 stocks

had weakened and rest of the 8stocks remained stable. Worstfive performers of the weekwere Shivee Ovoo (SHV) -14.29% to MNT6,000, BdSec (BDS) -10.96% to MNT2,226, Talkh Chikher (TCK) -9.63% to MNT13,510,State Department Store -6.20% to MNT481, and Sharyn Gol (SHG) -6.20% to MNT7,110.

MSE Top 20 Index (6 month)

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12,000

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14,000

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15,00015,500

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Total Trading Volume, US$ Top-20 IndexSource: MSE


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MNT Appreciated by 3%The local currency MNTappreciated by 3% comparedto the prior week.

The official MNT/US$

currency rate by the Bank ofMongolia closed atMNT1,671.93 on FridayDecember 13, 2013 thanMNT1,723.22 a week earlier.

US$-MNT rate (6 months)

1,380

1,430

1,480

1,530

1,580

1,630

1,680

1,730

1,780

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Bank of Mongolia RateSource: The Bank of Mongolia


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COMMODITY MARKETS

Mining Ministry to Cooperation with Association of Flourspar Explorers

On December 11, the Ministry of Mining established a memorandum of mutual understanding with the

Association of Fluorspar Explorers (AFE). The two sides intend to cooperate in

- augmenting the countrys expor t of fluorspar and its revenue- developing transparent and responsible mining

- improving a qualities and standards of fluorspar metallurgy and flotation concentrate

- increasing the production output of the minerals ore enrichmentIt is considered that this document will also help work out a national program on fluorspar, exploit thecountrys mineral resources and raw materials, increase a volume of productions byintensifying research works and their competitiveness at international market. This is also important forintroducing latest hi-tech in the country and for running joint trainings with foreign NGOs, said onMontsame News.


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CORPORATE NEWS

TDB of Mongolia Expands its Partnership NetworkTrade and Development Bank of Mongolia (TDB) and International Investment Bank (IIB) signed anagreement on strategic cooperation on November 27, 2013, according to the TDBs website . TheAgreement was signed by the Chairman of the Board of IIB, Nikolay Kosov, Chief Executive Officer ofTDB, Balbar Medree and Ambassador of Mongolia to the Russian Federation Mr. Shukher Altangerel.The agreement provides for a large variety of spheres of cooperation including organization ofsyndicated financing of investment projects, extending credit lines for SMEs support, insuring warrantiesand other spheres of interbank cooperation. The cooperation between two banks has started in 2005and IIB played big role in extending syndicated credit to TDB for financing credit activities by signingSyndicated loan agreement on September of 2013. As Chairman of the Board of IIB Nikolay Kosovnoted, cooperation with TDB is one of the important components of building strong partnershipnetwork of financial institutions for the ac hieving of IIBs strategic objectives of the support of SMEs inMember States.


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EURASIA CAPITAL RATINGS

MSE TOP-20 Companies (December 9-13, 2013)

Name SymbolEurasia CapitalRating

Price Market Cap Performance PE PBMNT MNTmn US$mn 1W chg y-t-d 2012 2012

APU APU UNDER REVIEW 3,926 291,654 174.4 -1.85% 3.0% 12.4 3.4Tavan Tolgoi TTL UNDER REVIEW 5,535 291,502 174.4 0.45% -37.1% 31.7 6.6Baganuur BAN UNDER REVIEW 4,396 92,203 55.1 -0.25% -16.7% 49.3 2.3Shivee Ovoo SHV UNDER REVIEW 6,000 80,515 48.2 -14.29% -40.0% NA 48.5Sharyn Gol SHG UNDER REVIEW 7,110 72,745 43.5 -6.20% -19.2% 235.4 4.7Gobi GOV UNDER REVIEW 5,175 40,371 24.1 -0.48% 15.0% 7.7 1.1Mongolian Telecom MCH UNDER REVIEW 1,274 32,959 19.7 -2.00% -31.1% 16.6 2.5Suu SUU UNDER REVIEW 89,520 30,795 18.4 0.00% 11.9% 173.5 1.2UB Hotel ULN UNDER REVIEW 90,000 30,177 18.0 0.00% 9.8% 12.2 2.8BDSec BDS UNDER REVIEW 2,226 24,486 14.6 -10.96% -38.6% 13.2 2.8Bayangol Hotel BNG UNDER REVIEW 50,000 21,153 12.7 0.00% 33.3% 5.5 0.8State Department Store UID UNDER REVIEW 481 17,711 10.6 -6.20% 26.6% -27.0 -51.7Talkh Chikher TCK UNDER REVIEW 13,510 13,830 8.3 -9.63% 9.8% -100.0 3.0Remicon RMC UNDER REVIEW 169 13,297 8.0 -0.58% -10.6% 4.8 1.5Khukh Gan HGN UNDER REVIEW 130 13,170 7.9 0.00% -23.5% 10.0 0.8Mogoin Gol BDL UNDER REVIEW 15,780 13,091 7.8 0.00% 21.4% 16.2 0.8Genco Tour Bureau JTB UNDER REVIEW 95 10,450 6.3 0.00% 5.6% 44.1 1.2Mongolia Development

ResourcesMDR UNDER REVIEW 712 9,789 5.9 6.63% -28.7% NA 1.0

Hotel Mongolia MSH UNDER REVIEW 977 9,770 5.8 0.00% -2.3% -531.0 3.0Silikat SIL UNDER REVIEW 200 9,267 5.5 0.00% 0.5% 296.6 4.6

Source: MSE, Eurasia Capital Estimates

Selected 5 Non-MSE TOP-20 Member Largest Companies (December 9-13, 2013)

Name SymbolEurasia CapitalRating

Price Market Cap Performance PE PB MNT MNTmn US$mn 1W chg y-t-d 2012 2012

Berkh Uul BEU UNDER REVIEW 4,900 93,404 55.9 -2.00% -22.2% 198.3 -740.8Darkhan Nekhii NEH UNDER REVIEW 11,500 12,713 7.6 -3.36% 111.0% 18.0 1.1Eermel EER UNDER REVIEW 2,669 9,286 5.6 0.00% -4.7% 5.8 0.7Makh Impex MMX UNDER REVIEW 2,200 8,362 5.0 0.92% 33.3% NA -2.2Aduunchuluun ADL UNDER REVIEW 1,814 5,716 3.4 0.78% 0.6% 7.8 1.7

Source: MSE, Eurasia Capital Estimates

*Note: These PE and PB ratios are not meaningful, in our view.


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ECONOMIC PERFORMANCEIndicator 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F

Population and incomePopulation, mn 2.53 2.56 2.59 2.63 2.68 2.74 2.76 2.81 2.87 2.93GDP per capita, US$ 720 905 1,327 1,620 2,108 1,688 2,267 3,045 3,575 4,300

National accounts Nominal GDP, MNTbn 2,152 2,780 3,715 4,599.5 6,555 6,591 8,415 10,830 13,944 17,650Nominal GDP, US$bn 1.8 2.3 3.2 3.9 5.1 4.6 6.6 8.6 10.3 13.6Real GDP growth, y-o-y, % 10.6 7.2 8.6 10.2 8.9 -1.3 6.4 17.3 12.3 18.5

Monetary indicators and inflation M2 growth, y-o-y, % 20.4 34.6 34.8 56.3 -5.5 26.9 62.5 37.0 18.8 25.0CPI, y-o-y, % 11.0 9.2 4.8 14.1 22.1 4.2 13.0 10.2 14.0 15.0Exchange rate, MNT/US$,end-year

1,209 1,221 1,165 1,170 1,267 1,443 1,257 1,396 1,392 1,300

International reserves,US$mn

208 333 718 1,001 657 822 2,000 2,500 4,091 4,500

Government finance

Revenue, % of GDP 33.1 30.1 36.6 40.9 33.1 30.3 37.1 40.6 35.6 40.2Expenditure, % of GDP 35.0 27.5 28.5 38.0 37.6 35.5 36.6 44.3 43.3 42.2Budget balance, % of GDP -2.1 3.2 3.9 2.9 -4.5 -5.2 0.5 -3.7 -7.7 -2.0

Balance of payments Exports, US$mn 869 1,064 1,542 1,948 2,535 1,885 2,909 4,780 4,385 6,578Imports, US$mn 1,019 1,177 1,435 2,062 3,245 2,138 3,200 6,527 6,739 8,086Exports, y-o-y, % 41.3 22.4 44.9 26.3 30.1 -25.6 54.3 64.3 -9.0 50.0Imports, y-o-y, % 28.8 15.5 21.9 43.7 57.4 -34.1 49.7 104.0 2.1 20.0Trade balance, US$mn -150 -113 107 -114 -710 -253 -291 -1,747 -2,354 -1,508Net FDI, US$mn 92.9 185.3 191.1 360.0 838.5 569.8 1,629.7 4,620.1 3,750.0 3,250.0Source: National Statistics Office of Mongolia, the Bank of Mongolia, the IMF, the World Bank, Eurasia Capital. *According to November 2010Population and Housing Census


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MSE AND MONGOLIA FOCUSED INTERNATIONAL MINING COMPANYSTOCKS PERFORMANCE SUMMARY

MSE TOP-20 Performance (December 9-13, 2013)

Code Name

Price Performance Market Cap Daily Turnover(52Wk Avg) 1Wk turnover

(MNT)Close 52 Wkhigh

52 Wklow

w-o-w y-t-d MNTmn US$mn MNT US$

90 APU 3,926 4,395 3,230 -1.85% 3.0% 291,654 174.4 189,533,440 113,362 30,865,396458 Tavan Tolgoi 5,535 9,275 1,902 0.45% -37.1% 291,502 174.4 3,950,118 2,363 75,898,115396 Baganuur 4,396 5,500 3,700 -0.25% -16.7% 92,203 55.1 1,119,393 670 2,185,332460 Shivee Ovoo 6,000 10,230 4,500 -14.29% -40.0% 80,515 48.2 503,004 301 2,695,000309 Sharyn Gol 7,110 10,250 7,110 -6.20% -19.2% 72,745 43.5 3,749,974 2,243 468,120354 Gobi 5,175 5,735 3,200 -0.48% 15.0% 40,371 24.1 832,805 498 2,542,940209 Mongolian Telecom 1,274 2,018 943 -2.00% -31.1% 32,959 19.7 392,203 235 983,704135 Suu 89,520 90,000 67,000 0.00% 11.9% 30,795 18.4 799,916 478 -3 UB Hotel 90,000 109,000 75,000 0.00% 9.8% 30,177 18.0 23,412,832 14,003 2,520,000522 BDSec 2,226 4,013 2,226 -10.96% -38.6% 24,486 14.6 2,453,143 1,467 3,990,82513 Bayangol Hotel 50,000 52,000 37,000 0.00% 33.3% 21,153 12.7 866,278 518 700,000484 State Department Store 481 513 365 -6.20% 26.6% 17,711 10.6 415,223 248 1,493,27722 Talkh Chikher 13,510 14,950 2,293 -9.63% 9.8% 13,830 8.3 1,315,660 787 3,101,440530 Remicon 169 198 160 -0.58% -10.6% 13,297 8.0 3,643,529 2,179 35,449,570532 Khukh Gan 130 188 110 0.00% -23.5% 13,170 7.9 996,106 596 1,544,201444 Mogoin Gol 15,780 16,500 11,050 0.00% 21.4% 13,091 7.8 176,973 106 -521 Genco Tour Bureau 95 96 80 0.00% 5.6% 10,450 6.3 370,354 222 1,539,817

524Mongolia DevelopmentResources

712 999 500 6.63% -28.7% 9,789 5.9 3,546,684 2,121 308,814

517 Hotel Mongolia 977 1,000 790 0.00% -2.3% 9,770 5.8 18,427 11 -317 Silikat 200 227 150 0.00% 0.5% 9,267 5.5 326,017 195 -

Source: MSE, Bank of Mongolia, Eurasia Capital

Selected Non-MSE TOP-20 Member Leading Market Cap Companies (December 9-13, 2013)

Code NamePrice Performance Market Cap

Daily Turnover(52Wk Avg) 1Wk turnover

(MNT)Close 52 Wkhigh

52 Wklow

w-o-w y-t-d MNTmn US$mn MNT US$

492 Berkh Uul 4,900 6,700 2,707 -2.00% -22.2% 93,404 55.9 174,678 104 4,90071 Darkhan Nekhii 11,500 12,000 5,360 -3.36% 111.0% 12,713 7.6 5,318,515 3,181 3,436,000191 Eermel 2,669 3,000 2,150 0.00% -4.7% 9,286 5.6 187,285 112 -208 Makh Impex 2,200 2,200 1,600 0.92% 33.3% 8,362 5.0 167,693 100 1,728,580461 Aduunchuluun 1,814 3,506 1,405 0.78% 0.6% 5,716 3.4 755,297 452 9,027,798

Source: MSE, Bank of Mongolia, Eurasia Capital


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Performance of MSE Stocks Traded (December 9-13, 2013)

Code NamePrice Performance Market Cap

Daily Turnover(52Wk Avg)

Close52 Wkhigh

52 Wk low w-o-w y-t-d MNTmn US$mn MNT US$

458 Tavan Tolgoi 5,535 9,275 1,902 0.45% -37.1% 291,502 174.4 3,950,118 2,363530 Remicon 169 198 160 -0.58% -10.6% 13,297 8.0 3,643,529 2,17990 APU 3,926 4,395 3,230 -1.85% 3.0% 291,654 174.4 189,533,440 113,362

461 Aduunchuluun 1,814 3,506 1,405 0.78% 0.6% 5,716 3.4 755,297 452525 HBOil 330 800 151 -5.71% 94.1% 3,047 1.8 2,245,921 1,34522 BDSec 2,226 4,013 2,226 -10.96% -38.6% 24,486 14.6 2,453,143 1,467379 Material Impex 14,000 15,000 5,050 0.00% 177.2% 19,155 11.5 379,482 22771 Darkhan Nekhii 11,500 12,000 5,360 -3.36% 111.0% 12,713 7.6 5,318,515 3,18122 Talkh Chikher 13,510 14,950 2,293 -9.63% 9.8% 13,830 8.3 1,315,660 787460 Shivee Ovoo 6,000 10,230 4,500 -14.29% -40.0% 80,515 48.2 503,004 301354 Gobi 5,175 5,735 3,200 -0.48% 15.0% 40,371 24.1 832,805 4983 UB Hotel 90,000 109,000 75,000 0.00% 9.8% 30,177 18.0 23,412,832 14,003396 Baganuur 4,396 5,500 3,700 -0.25% -16.7% 92,203 55.1 1,119,393 67025 Moninjbar 190 330 190 0.23% -36.7% 3,022 1.8 7,409,338 4,432208 Makh Impex 2,200 2,200 1,600 0.92% 33.3% 8,362 5.0 167,693 100448 Chatsargana 2,050 4,000 1,838 0.00% -48.8% 1,463 0.9 74,243 44532 Khukh Gan 130 188 110 0.00% -23.5% 13,170 7.9 996,106 596521 Genco Tour Bureau 95 96 80 0.00% 5.6% 10,450 6.3 370,354 222484 State Department Store 481 513 365 -6.20% 26.6% 17,711 10.6 415,223 248537 E-Trans-Logistics 113 143 100 2.73% -16.3% 5,221 3.1 368,631 220209 Mongolian Telecom 1,274 2,018 943 -2.00% -31.1% 32,959 19.7 392,203 23513 Bayangol Hotel 50,000 52,000 37,000 0.00% 33.3% 21,153 12.7 866,278 518176 Munkh Undes 2,112 2,535 956 14.97% 120.9% 185 0.1 124,869 75309 Sharyn Gol 7,110 10,250 7,110 -6.20% -19.2% 72,745 43.5 3,749,974 2,243195 UB BUK 35,000 40,000 10,350 9.38% 194.1% 39,490 23.6 236,959 142

524 Mongolia DevelopmentResources

712 999 500 6.63% -28.7% 9,789 5.9 3,546,684 2,12

252 Darkhan Guril Tejeel 770 1,610 770 -23.00% -48.7% 473 0.3 49,309 292 Mongol Savkhi 1,100 1,600 1,000 -8.33% -12.0% 2,723 1.6 95,114 57527 Olloo 120 150 100 -13.94% -17.2% 1,164 0.7 483,194 28937 Solongo Express 2,295 4,250 1,800 -15.00% -45.4% 359 0.2 28,015 17376 Khishig Uul 1,000 1,380 595 0.00% 17.6% 868 0.5 43,003 234 Gazar Suljmel 32,000 34,500 14,500 6.67% 120.7% 5,798 3.5 318,808 191492 Berkh Uul 4,900 6,700 2,707 -2.00% -22.2% 93,404 55.9 174,678 104

378 Khasu Mandal 2,300 13,020 1,350 11.11% 70.4% 717 0.4 20,703 12Source: MSE, Bank of Mongolia, Eurasia Capital


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Silk Road Mongolia Index* Companies Performance (December 9-13, 2013)

Name Symbol CurrencyClosePrice

MktCap Price PerformanceDaily

TurnoveMultiple

US$mn 52 wk high 52 wk low w-o-w y-t-d % D/3MMONGOLIA ENERGY CORP LTD 276:HK HKD 0.248 216.11 0.53 0.21 -0.80% -33.87 0.NORTH ASIA RESOURCES HOLDING 61:HK HKD 0.166 62.02 0.375 0.132 -5.14% -42.76 0SOLARTECH INTERNATIONAL HOLD 1166:HK HKD 0.395 13.37 0.71 0.33 1.28% -18.56 0

SOUTHGOBI RESOURCES LTD 1878:HK HKD 8.06 189.19 22.3 7.61 0.12% -48.92 4.PEACE MAP HOLDING LTD 2953:HK HKD 0.295 220.00 0.48 0.17 -3.28% 55.26 0.0MONGOLIAN MINING CORP 975:HK HKD 1.08 516.07 4.69 1.02 0.93% -71.58 1.0WINSWAY COKING COAL HOLDINGS 1733:HK HKD 0.5 243.32 1.49 0.4 -5.66% -61.54 0APU JSC APU:MO MNT 3926 174.33 4490 3230 -1.85% 2.96 0.00TAVANTOLGOI JSC TTL:MO MNT 5535 174.24 10000 1861 0.45% -37.10 0.3BAGANUUR JSC BAN:MO MNT 4396 55.11 5500 3700 -0.25% -16.74 0.7SHIVEE OVOO JSC SHV:MO MNT 6000 48.13 10230 4500 -14.29% -40.00 0.1Mongolian Telecom MCH:MO MNT 1274 19.70 2090 920 -2.00% -31.14 0.206SHARYN GOL JSC SHG:MO MNT 7110 43.48 10250 6500 -6.20% -19.16 0.0BERKH UUL JSC BEU:MO MNT 4900 55.83 6700 2700 -2.00% -22.22 0.0TURQUOISE HILL RESOURCES LTD IVN:US USD 3.21 6,458.89 7.4456 2.9527 -4.18% -45.50 0ASPIRE MINING LTD AKM:AU AUD 0.06 35.38 0.18 0.033 0.00% -11.76 0.2PETRO MATAD LTD MATD:LN GBp 2.875 13.08 7.5 2.625 -8.00% -54.90 0.4CENTERRA GOLD INC CG:CN CAD 3.95 880.38 10.43 2.82 15.50% -57.57 0.EAST ASIA MINERALS CORP EAS:CN CAD 0.035 3.64 0.36 0.03 0.00% -81.58 0

ENTREE GOLD INC ETG:CN CAD 0.32 44.27 0.62 0.245 -4.48% -28.89 0.PROPHECY COAL CORP PCY:CN CAD 0.075 17.20 0.185 0.06 15.38% -34.78 0.ORIGO PARTNERS PLC OPP:LN GBp 7.5 43.59 14.25 6.125 -1.64% -43.93 0.0CENTRAL ASIA METALS PLC CAML:LN GBp 148 204.58 165 97.293 -3.90% 20.61 0HARANGA RESOURCES LTD HAR:AU AUD 0.07 15.16 0.2 0.05 6.06% -57.58 1XANADU MINES LTD XAM:AU AUD 0.055 9.82 0.105 0.032 10.00% -31.25 1.2ERDENE RESOURCE DEVELOPMENT ERD:CN CAD 0.1 6.47 0.27 0.065 -9.09% -42.86 VOYAGER RESOURCES LTD VOR:AU AUD 0.004 5.48 0.034 0.004 0.00% -75.00 0KINCORA COPPER LTD KCC:CN CAD 0.025 4.89 0.11 0.01 25.00% -77.27 0MONGOLIA GROWTH GROUP LTD YAK:CN CAD 2.13 69.03 4.5 2.05 -3.18% N/A 0MODUN RESOURCES LTD MOU:AU AUD 0.005 4.09 0.017 0.004 0.00% -54.55 0.3GUILDFORD COAL LTD GUF:AU AUD 0.075 42.66 0.6 0.071 -6.25% -86.73 0.FEORE LTD FEO:AU AUD 0.04 18.96 0.08 0.025 0.00% -50.00 17.3

Source: Bloomberg, Eurasia Capital


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CONTACTS

Research:Ulziibayar Batbuyan IB, Associate [email protected]

Amgalanbileg Khash-Erdene Analyst [email protected] Davaasuren Analyst [email protected]

Sales and Trading:Narantsatsral Batgerel Broker [email protected] Myagmartseren Broker [email protected]

Address:

MONGOLIASuite 314, RegencyOlympic street-16Ulaanbaatar, MongoliaTel./Fax: +(976) 7711 9799

Eurasia Capital is an investment bank with a focus on Mongolia and other resource-rich Asian countries. Headquartered inUlaanbaatar, the Firm offers cross border M&A and advisory, capital raising, sales & trading and research services to itsinternational and regional clients including government agencies, major energy and resource companies, sovereign wealthfunds, private equity groups and global portfolio investors. For more info, please visit our website: www.eurasiac.com

DISCLAIMERThis Mongolia Weekly is made for information purposes only, and does not constitute an offer, solicitation of an offer to purchase, hold, sell, invest or make anyother financial decision. In making decisions, investors may rely on their own examinations of the parties and risks involved. Information contained in this researchproduct is obtained from the sources believed to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors suchinformation provided 'as is" without warranty of any kind and Eurasia Capital Ltd., in particular, make no representation or warranty, express or implied, as toaccuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such information. Under no circumstances, Eurasia Capital Ltd. haveany liability to any person or entity (-ies) for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligible or otherwise) orother circumstances or contingency within or outside the control of any of their directors, managements, officers, employees, or agents in connection withcompilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatoryor incidental damages whatsoever (including without limitation, loss profits) even if Eurasia Capital Ltd. is advised in advance of the possibility of such damages,resulting from the use of or inability to use, any such information.

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ecmgl weekly december 9-15

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