Mongolia Weekly: 19 August 2011 - Eurasia Capital

Mongolia Weekly
August 15-19, 2011
Politics and Economy
HDF to Spend MNT85bn on Tuition Fees
600MW Thermal Power Plant to Be Built in South Gobi
Bank of Mongolia and Bank of Korea Sign Memorandum of
Understanding
ADB Grants US$2mn for Road Repairs
Chinese High Official to Visit Mongolia
“Discover Mongolia” to Attract International Investors
Financial Markets
MSE TOP-20 Gained Only 0.06%
Government Raises MNT26.7bn for Cashmere Industry and
SMEs
MNT Depreciates 0.5% vs US$
Corporate News
Guildford Coal Acquired Alag Tevch LLC
SouthGobi Resources Announced Financial and
Operational 2Q2011 Results
Construction of Oyu Tolgoi is Complete 30.8%
Prophecy Coal Intercepted 19 Meter Coal Seam at IIch
Khujirt Property
MSE TOP-20 Index
34,000
30,000
26,000
22,000
18,000
14,000
10,000
6,000
Source: MSE
Sep-10
www.eurasiac.com
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
Top-20 Trading Volume (MNTmn) Top-20 index
May-11
Jun-11
Jul-11
Aug-11
25,000
20,000
15,000
10,000
5,000
-
MNTmn
Selected Worldwide Indices
Index
Close
price
Performance
w-o-w YTD
MSE TOP 20 20,771.4 0.06% 40.7%
Silk Road Mongolia 1,260.6 -5.60% -17.5%
Silk Road Hong Kong 72.0 -4.31% -33.3%
Dow Jones 10,817.7 -4.01% -6.6%
FTSE 100 5,040.8 -5.25% -14.6%
Nikkei 8,719.2 -2.73% -14.8%
MSCI EM Asia 398.2 -2.94% -14.9%
Hang Seng 19,399.9 -1.12% -15.8%
Shanghai 2,807.7 -2.35% -10.2%
KASE 1,208.2 -4.32% -29.7%
RTS 1,564.4 -1.76% -11.7%
Top Movers on MSE
Close Performance
Stock
Best performers
price,
MNT
w-o-w YTD
Khereglee Impex 1,385 32.16% 140.9%
MONNOOS 1,380 15.00% 1.5%
Kharkhorin 132 14.78% 32.0%
Eermel 2,800 11.91% -2.6%
Genco Tour Bureau
Worst performers
101 9.78% 7.4%
Gutal 2,470 -20.32% 229.3%
Suu 78,000 -19.21% 271.7%
Shivee Ovoo 27,100 -15.05% 108.5%
Gan Kherlen 3,005 -14.94% 300.7%
Durvun-Uul 770 -14.44% 92.5%
Major Commodities
Commodity Last price
Performance
w-o-w YTD
Copper $/t 8,804.50 -0.46% -8.8%
Gold $/oz 1,852.10 6.02% 30.4%
Coal 1 $/t 148.60 -0.31% 16.2%
Iron ore 2 , $/t 206.49 -0.79% 7.4%
Uranium $/lp 50.25 -2.43% -18.3%
Crude oil $/bbl 82.26 -3.65% -10.0%
MNT vs Major Currencies
Name
Rate 3 ,
MNT
MNT app(+) or dep(-)
w-o-w YTD
US$ 1,237.78 -0.46% 1.5%
Euro 1,768.79 -1.08% -5.3%
Japanese Yen 16.19 -0.68% -4.8%
Chinese Yuan 193.51 -0.42% -1.4%
Russian Rouble 42.26 -1.05% -2.7%
1
Qinhuangdao, Steam Coal
2
China Import Price Qingdao Port
3
Central Bank Rates
Source: Bloomberg, MSE, Eurasia Capital

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
ECONOMIC EVENT CALENDAR
Indicator name Reporting period Release date Actual result Previous result
CPI, m-o-m, % Jul 2011 Aug 10, 2011 0.8 0.4
CPI, y-o-y, % Jan-Jul 2011 Aug 10, 2011 10.1 9.8
Industrial output y-o-y, % Jan-Jul 2011 Aug 10, 2011 6.8 15.9
Money Supply (M2), MNTbn Jul 2011 Aug 10, 2011 5,922.5 5,772.6
Money Reserve (M1), MNTbn Jul 2011 Aug 10, 2011 1,559.4 1,552.6
External trade turnover, US$mn
Exports, US$mn
Imports, US$mn
Balance, US$mn
Budget, MNTbn
Revenue, MNTbn
Expenditure, MNTbn
Balance, MNTbn
Jan-Jul 2011 Aug 10, 2011 5,783.8
2,341.6
3,442.2
-1,100.7
Jan-Jul 2011 Aug 10, 2011
2,305.7
2,180.3
125.4
3,207.7
1,538.5
1,669.2
-130.7
1,484.0
1,613.4
-129.4
GDP, y-o-y, % Jan-Jun 2011 Aug 10, 2011 14.3 5.0
Source: Bank of Mongolia, National Statistics Office of Mongolia
INTERNATIONAL IPO CALENDAR
Company name IPO size, US$bn Stock Exchange Type Year
Iron Mining Int’l 1.0 HKEx Iron ore 2011
Gobi Coal and Energy - ASX/TSX Coal 2011
Erdenes Tavan Tolgoi 1.5-5.0 LSE/HKEx Coal 1Q2012
Altan Rio Minerals - TSXV Copper and gold 2011
Source: Company data
www.eurasiac.com 2

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
POLITICS AND ECONOMY
HDF to Spend MNT85bn on Tuition Fees
According to Montsame Agency, a regular Cabinet meeting held on Wednesday, August 18 decided to
grant MNT491,960 from the Human Development Fund (HDF) to university students for tuition fees in
the academic year 2011-2012. The allowance will be provided from January 2012.
The Cabinet requested relevant Ministries to plan tuition fee expense in the draft budget 2012 in
accordance with the law on the HDF. It is estimated tuition fee allowance for about 170,000 students at
universities, institutes and colleges in Mongolia may cost MNT85bn (appr. US$70mn at current rate) to
the Fund.
600MW Thermal Power Plant to Be Built in South Gobi
According to news.mn, August 15, the Deputy Chief of the Energy Policy Board of the Ministry of Mineral
Resources and Energy, D. Purevbayar, has told the Mongolian Mining Journal that Oyu Tolgoi LLC and
Erdenes Tavan Tolgoi LLC have signed a memorandum of cooperation to build a 600MW Thermal Power
Plant to provide energy in the Gobi region, as the Ministry has recommended.
Foreign advisors have conducted studies to determine whether the plant should be built in Tavan Tolgoi
or Oyu Tolgoi. The Ministry has indicated that it prefers the Tavan Tolgoi site, but the Government has
yet to officially decide where the plant will be built.
Bank of Mongolia and Bank of Korea Sign Memorandum of Understanding
The Governor of Bank of Mongolia L. Purevdorj and his counterpart from the Bank of Korea Kim Choongsoo
have signed the Memorandum of Understanding on technical assistance and cooperation during a
meeting on August 14 according to Mongolian Central Bank news statement. Bank of Korea Director of
Foreign Policy Department Hong Seung-je and Senior Officer of Foreign Policy Departments Kim Namjun
as well as Bank of Mongolia First Deputy Governor B. Javkhlan and other officials attended the
meeting.
ADB Grants US$2mn for Road Repairs
The Board of Directors of Asian Development Bank (ADB) has decided to provide US$2mn worth aid for
the Department of Road, Mongolia. ADB believes that roads will help to boost mining industry, increase
the economic growth, and decrease the poverty.
Chinese High Official to Visit Mongolia
According to Montsame, August 18, a member of the Politburo Standing Committee of the Communist
Party of China (CPC) and the Secretary of CPC Central Political and Legislative Committee Zhou Yongkang
will visit Mongolia on August 23-26, 2011.
www.eurasiac.com 3

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
This is a continuation of high-level meetings and visits between Mongolia and the People's Republic of
China (PRC), and it will contribute towards developing of the Mongolia-China strategic partnership
relations and widening the bilateral cooperation. Mr. Zhou Yongkang is expected to meet Mongolian
state officials and political parties. Agreements on cooperation are expected to be signed during the
visit.
“Discover Mongolia” to Attract International Investors
News.mn reported on August 19 that 9 th annual “Discover Mongolia 2011 ” forum, which is to
concentrate on mining sector of the country, is going to take place under motto of ‘Let’s develop
mutually beneficial cooperation’ on September 8-10. Several international mining giants have already
registered to take part. With its focus on mining industry, organizers are expecting the forum to attract a
number of international investors.
Temuulen Munkhbaatar
temuulen.munkhbaatar@eurasiac.com
FINANCIAL MARKETS
MSE TOP-20 Gained Only 0.06%
Last week, Top 20 Index advanced
0.06% w-o-w to 20,771.39 on trade
volume of MNT843.77mn (US$680mn),
which was boosted by MNT465.07mn
trade on Friday. The total MSE trade
volume for the week was
MNT998.21mn.
Shares of 52 companies were traded:
12 companies advanced, 19 declined
and 21 remained flat.
MSE TOP-20 Index
34,000
30,000
26,000
22,000
18,000
14,000
10,000
6,000
Aug-10
Almost all major coal stocks dropped w-
Source: MSE
o-w: Baganuur (BAN) (-4.25% to
MNT19,150 on MNT232.46mn volume), Shivee Ovoo (SHV) (-1.85% to MNT27,100 on MNT24.05mn),
Mogoin Gol (BDL) (-0.03% to MNT37,000 on MNT9.89mn) and Sharyn Gol (SHG) (-1.84% to MNT15,705
on MNT17.02mn). Aduunchuluun (ADL) is only major coal company to advance last week (+0.10% to
MNT9,210 on MNT11.15mn).
Among major non-resource stocks - APU (APU) increased 3.55% (beverages, to MNT3,210 on
MNT56.09mn) as well as Gobi (GOV), which was 4.25% up (cashmere, to MNT5,400 on MNT9.92mn).
Mongolian Telecom (MCH) remained flat (telecom, to MNT3,000 on MNT1.19mn). The underperformer
of the week was Genco Tour Bureau (JTB), which dropped 11.40% to MNT101 on MNT16.16mn trade
volume.
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
25,000
20,000
15,000
10,000
5,000
Top-20 Trading Volume (MNTmn) Top-20 index
www.eurasiac.com 4
Apr-11
May-11
Jun-11
Jul-11
-
MNTmn

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
Government Raises MNT26.7bn for Cashmere Industry and SMEs
According to MSE news release of August 16, the government bonds worth of MNT26.7bn were placed
at the Mongolian Stock Exchange (MSE). The capital is raised to finance government programme
supporting cashmere industry and small and medium-size enterprises (SMEs). Next scheduled trading of
the government bonds will take place at the MSE on August 23 and August 30. The bond guidance is
given below:
Date Maturity /year/ Units Unit Price /MNT/ Total /MNTbn/ Coupon Rate
23-Aug 1 150,000 100,000 15.0 8.0%
2 80,000 100,000 8.0 9.0%
3 20,000 100,000 2.0 10.0%
30-Aug 1 140,000 100,000 14.0 8.0%
Source: Ministry of Finance
MNT Depreciates 0.5% vs US$
2 80,000 100,000 8.0 9.0%
3 20,000 100,000 2.0 10.0%
4 10,000 100,000 1.0 11.0%
Last week, MNT weakened 0.5% against
US$ as the Central Bank MNT/US$ rate
closed at 1,237.12 on Friday.
In the inter-bank market, US$ buy and
sell rates both lost 0.63% and 0.80%
respectively against MNT. US$ was
traded at a buy rate of MNT1,235.42 and
at a sell rate of MNT1,248.13 on Friday.
In the alternative market, US$ buy and
sell rates advanced 0.97% and 1.05%,
respectively, and were traded at a buy
rate of MNT1,244 and at a sell rate of
MNT1,248 on Friday.
Rentsendorj Yondon
rentsendorj.yondon@eurasiac.com
US$-MNT rate
1,280
1,260
1,240
1,220
1,200
1,180
14-Feb-11
1-Mar-11
16-Mar-11
Source: Bank of Mongolia, Eurasia Capital
31-Mar-11
15-Apr-11
30-Apr-11
www.eurasiac.com 5
15-May-11
Inter-Bank Buy Rate Bank of Mongolia Rate
30-May-11
14-Jun-11
29-Jun-11
14-Jul-11
29-Jul-11

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
CORPORATE NEWS
MINING
Guildford Coal Acquired Alag Tevch LLC
Guildford Coal Ltd announced on August 9 that its 70% owned subsidiary Terra Energy LLC has acquired
100% Alag Tevsh LLC for US$3.5mn which holds coal exploration license 5262X in the South Gobi region
of Mongolia. According to the Company, the exploration license is adjacent to the existing South Gobi
Project tenements which are expected to expand the scale potential of this coking and thermal coal
project. Exploration target (0-122Mt) for the new tenement developed by independent geologists
expanded an Exploration target for the South Gobi Project to 0-582Mt. Guildford Coal Ltd Managing
Director, Mr Mick Avery stated that “the highly prospective Terra Energy LLC Projects have the potential
to host large scale thermal and coking coal mineral resources and represent an opportunity for
Guildford to become a coal producer within 12 months as the South Gobi Project is well located close to
the Chinese border station of Ceke where coal from Mongolia is already trucked into China”.
SouthGobi Resources Announced Financial and Operational 2Q2011 Results
SouthGobi Resources announced financial and operational results on August 10. According to the press
release, 2Q2011 income from the mining operations amounted to US$9.7mn which is the highest
quarterly record since the commencement of mining operations. In 2Q2011 the Company produced
1.49Mt of raw coal (0.87Mt and 0.62Mt of raw coal with a strip ratio of 4.74 and 2.79, respectively).
Although production was impacted by the fuel shortages in Mongolia, the Company was able to sell
approximately 1.05Mt of coal at an average realized selling price of approximately US$54 per tonne
which is 2.3 times higher than coal sold in 1Q2011. The Company made operating loss of US$4.4mn
from continuing operations even though it showed net income of US$67.3mn. Dramatic increase of net
income from negative US$46.6mn in 1Q2011 to US$67.3mn in 2Q2011 is attributable to the gain of
US$70.4mn on value change of embedded derivatives in CIC debenture and mark-to-market gain of
US$3.4mn in value of investment in Kangaroo. According to the Company, revenue in 2011 was also
negatively affected by an increase of the effective royalty fee from 9% in 1Q2011 to 14% in 2Q2011 as
the Mongolian Government reset the benchmark price levels that are applied in calculation of royalties
payable. The Company announced that on July 5 it has entered into an agreement with Ejin Jinda, a
subsidiary of China Mongolia Coal Co. Ltd, to toll wash raw higher-ash and medium-ash coals from the
Ovoot Tolgoi Mine at Ejin Jinda’s wet washing facility in China. Washed coal is expected to have ash
content of 8%-11% at a yield of 85% to 90%. Moreover, it was reported that on August 2, 2011 NTB LLC
and SouthGobi Sands LLC, a subsidiary of SouthGobi Resource, has won a tender to construct a paved
highway from Ovoot Tolgoi to the Mongoli-China border which upon completion is expected to carry
more than 20Mt of coal per year. NTB-SouthGobi Sand consortium plans to start construction of paved
road this year and has the right to conclude a 15-year build, operate and transfer contract under the
Mongolian Law on Concessions.
www.eurasiac.com 6

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
Construction of Oyu Tolgoi is Complete 30.8%
Ivanhoe Mines announced financial and operational results on August 12. According to the press
release, at the end of 2Q2011 construction of Oyu Tolgoi is complete 30.8% and it is both on schedule
and budget. Ivanhoe Mines expects that commercial production of copper-gold-silver concentrate will
begin in 1H2013. Pre-stripping for the phase-one, open-pit mine on the Southern Oyu deposits at Oyu
Tolgoi began in August 2011. The contracts for the construction of a 95km 220-kilovolt power
transmission line from Oyu Tolgoi to the Mongolia-China international border have been awarded to the
Mongolian companies. The transmission line will deliver electricity from China to support the initial
mining operation at Oyu Tolgoi. The tower construction is expected to be completed during 4Q2011
with line stringing to commence in spring 2012. Off-take agreements on copper-gold-silver concentrate
that will mostly be delivered to smelters in China are expected to be finalized in 4Q2011.
Prophecy Coal Intercepted 19 Meter Coal Seam at IIch Khujirt Property
Prophecy Coal Corp announced on August 17 that it has intercepted a 19 meter coal seam at its newly
acquired 4,773ha IIch Khujirt property. The property is located 17km northeast of Prophecy’s Ulaan
Ovoo coal mine. Preliminary assay results of the coal core contain moisture level of 20.96%, ash level of
14.52%, volatile matter of 29.83%, fixed carbon of 34.69%, calorific value of 5,130 kcal/kg and total
sulfur level of 0.35%. Since core recovery was poor the Company needs to do an additional drilling on
the licence area. John Lee, CEO and Chairman of Prophecy Coal Corporation said that they believe
through systematic exploration, there exists great potential to discover additional coal seams of minable
depths in the surroundings of Ulaan Ovoo mine. Prophecy Resource Corp. announced On May 4 that it
entered into an Option Agreement with a private Mongolian company, which holds an exploration
license for an area located 17 km northwest of the Ulaan Ovoo coal mine. The Agreement gives
Prophecy the right to purchase 100% ownership of the 4,773 hectare-property for US$2mn within the
first year or US$4mn in the second year after the signing of the Agreement. The announcement did not
mention the name of the private Mongolian company (the seller).
Akmal Aminov
akmal.aminov@eurasiac.com
www.eurasiac.com 7

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
EURASIA CAPITAL RATINGS
MSE TOP-20 Companies (August 22, 2011)
Name Symbol
Eurasia Capital
Rating
Target
Price, MNT
Upside,
%
Price
MNT
Market Cap
MNTmn US$mn
Performance
1D chg y-t-d
PE
2010
PB
2010
Baganuur BAN NOT RATED - - 19,150 401,659 324.7 -0.3% 82.4% NA NA
Tavan Tolgoi TTL BUY 1,355,200 85.6% 730,000 384,456 310.8 0.0% 26.7% 5.0 3.9
Shivee Ovoo SHV NOT RATED - - 27,100 363,658 294.0 -1.5% 108.5% NA NA
APU APU BUY 4,300 34.0% 3,210 238,464 192.8 -2.4% 61.3% 12.1 4.8
Sharyn Gol SHG BUY 32,742 108.5% 15,705 133,869 108.2 -1.8% 49.6% NA 17.1
Mongolian Telecom MCH NOT RATED - - 3,000 77,611 62.7 0.7% -14.3% 42.2 2.3
BDSec BDS NOT RATED - - 4,100 45,100 36.5 2.5% 64.0% 55.1 7.1
Gobi GOV NOT RATED - - 5,400 42,126 34.1 3.8% -3.6% 12.5 1.7
Mogoin Gol BDL NOT RATED - - 37,000 30,696 24.8 0.0% 213.6% NA 13.7
Aduunchuluun ADL NOT RATED - - 9,210 29,024 23.5 0.1% 15.1% 60.7 11.5
Suu SUU HOLD 69,106 -11.4% 78,000 26,832 21.7 0.0% 271.7% 9.9 3.1
Mongolian Development
Resources
MDR BUY 2,630 46.1% 1,800 24,750 20.0 -2.7% 38.5% 24.6 1.7
Khukh Gan HGN NOT RATED - - 240 24,316 19.7 0.0% 28.3% -16.6 3.0
State Department Store UID NOT RATED - - 465 17,116 13.8 -2.1% 8.1% NA 4.6
Bayangol Hotel BHG BUY 52,900 43.0% 37,000 15,653 12.7 0.0% 54.8% 6.9 0.8
Bayanteeg BTG NOT RATED - - 59,500 15,030 12.1 0.0% 749.9% NA NA
Talkh Chikher TCK BUY 20,200 39.3% 14,500 14,844 12.0 2.5% 291.9% 16.6 4.7
Remicon RMC NOT RATED - - 147 11,566 9.3 5.0% 104.2% 27.4 1.8
Genco Tour Bureau JTB NOT RATED - - 101 11,110 9.0 -1.9% 7.4% 99.5 1.3
Hotel Mongolia MSH NOT RATED - - 815 8,150 6.6 0.0% 45.5% 54.1 2.5
Source: MSE, Eurasia Capital Estimates
Selected 5 Non-MSE TOP-20 Member Largest Companies (August 22, 2011)
Name Symbol
Eurasia Capital
Rating
Target
Price, MNT
Upside,
%
Price Market Cap Performance PE PB
MNT MNTmn US$mn 1D chg y-t-d 2010 2010
UB Hotel ULN ULN 57,400 17.1% 49,000 16,430 13.3 0.0% 78.2% 13.1 2.6
Darkhan Nekhii NEH NEH 11,719 56.3% 7,500 8,291 6.7 0.0% 53.1% 6.8 1.4
Eermel EER EER - - 2,800 9,742 7.9 5.5% -2.6% 27.8 0.9
Makh Impex MMX MMX - - 2,000 7,601 6.1 -4.8% 11.1% NA NA
Nako Tulsh NKT NKT - - 275 3,469 2.8 0.0% -15.4% NA 2.9
Source: MSE, Eurasia Capital Estimates
www.eurasiac.com 8

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
ECONOMIC PERFORMANCE
Indicator 2003 2004 2005 2006 2007 2008 2009 2010 2011f
Population and income
Population, mn 2.50 2.53 2.56 2.59 2.63 2.68 2.74 2.65* 2.66
GDP per capita, US$ 582 720 905 1224 1503 1940 1560 2490 3270
National accounts
Nominal GDP, MNTbn 1660 2152 2780 3715 4599.5 6555 6591 8255 9900
Nominal GDP, US$bn 1.4 1.8 2.3 3.2 3.9 5.1 4.6 6.1 8.8
Real GDP growth, y-o-y, % 7.0 10.6 7.2 8.6 10.2 8.9 -1.3 6.1 10
Monetary indicators and inflation
M2 growth, y-o-y, % 49.6 20.4 34.6 34.8 56.3 -5.5 26.9 62.5 50.0
CPI, y-o-y, % 4.7 11 9.2 4.8 14.1 22.1 4.2 13.0 25.0
Exchange rate, MNT/US$, end-year 1168 1209 1221 1165 1170 1267 1443 1257 1130
International reserves, US$mn - 208 333 718 1001 657 822 2000 2300
Government finance
Revenue, % of GDP - 33.1 30.1 36.6 40.9 35.4 32.9 37.3 42.2
Expenditure, % of GDP - 35.0 27.5 28.5 38.0 40.2 38.3 37.3 52.1
Budget balance, % of GDP -4.2 -2.1 3.2 3.9 2.2 -5.0 -5.4 0 -9.9
Balance of payments
Exports, US$mn 615.9 872 1069 1545 1952 2539 1885 2899 3769
Imports, US$mn 801 1021 1224 1516 2170 3616 2138 3278 4425
Exports, y-o-y, % 17.5 41.2 22.4 44.9 22.5 30.3 -24.9 53.8 30.0
Imports, y-o-y, % 16.0 27.5 16.0 25.4 36.1 66.6 -34.3 53.3 35.0
Trade balance, US$mn -185.1 -149 -155 30 -218 -1077 -229 -379 -656
FDI, US$mn 131.5 92.9 182.3 367 500 709 801 1400 2000
Source: National Statistics Office of Mongolia, the Bank of Mongolia, the IMF, the World Bank, Eurasia Capital. *According to November 2010
Population and Housing Census
www.eurasiac.com 9

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
MSE AND MONGOLIA FOCUSED INTERNATIONAL MINING COMPANY
STOCKS PERFORMANCE SUMMARY
MSE TOP-20 Performance (August 15-19, 2011)
Code Name
Close
Price
52 Wk
high
52 Wk low
Performance
w-o-w y-t-d
Market Cap
MNTmn US$mn
Daily Turnover
(52Wk Avg)
MNT US$
396 Baganuur 19,150 41,780 5,060 -4.25% 82.4% 401,659 324.7 95,030,224 76,816
458 Tavan Tolgoi 730,000 1,439,000 300,000 0.00% 26.7% 384,456 310.8 19,759,071 15,972
460 Shivee Ovoo 27,100 62,300 6,000 -1.85% 108.5% 363,658 294.0 16,531,711 13,363
90 APU 3,210 3,750 1,600 3.55% 61.3% 238,464 192.8 13,047,988 10,547
309 Sharyn Gol 15,705 35,099 7,418 -1.84% 49.6% 133,869 108.2 119,114,966 96,284
209 Mongolian Telecom 3,000 4,501 2,500 0.00% -14.3% 77,611 62.7 1,398,884 1,131
522 BDSec 4,100 5,900 2,350 2.50% 64.0% 45,100 36.5 16,362,356 13,226
354 Gobi 5,400 7,700 4,900 4.25% -3.6% 42,126 34.1 13,502,497 10,914
444 Mogoin Gol 37,000 66,463 6,500 -0.03% 213.6% 30,696 24.8 4,264,071 3,447
461 Aduunchuluun 9,210 31,405 750 0.10% 15.1% 29,024 23.5 6,253,773 5,055
135 Suu 78,000 96,543 3,200 -2.50% 271.7% 26,832 21.7 370,244 299
524
Mongolia Development
Resources
1,800 2,300 1,038 -2.65% 38.5% 24,750 20.0 11,047,661 8,930
532 Khukh Gan 240 270 149 -7.34% 28.3% 24,316 19.7 7,112,831 5,750
484 State Department Store 465 900 342 -6.06% 8.1% 17,116 13.8 1,983,002 1,603
13 Bayangol Hotel 37,000 37,005 22,000 4.23% 54.8% 15,653 12.7 1,170,972 947
445 Bayanteeg 59,500 70,000 594 0.00% 749.9% 15,030 12.1 303,194 245
22 Talkh Chikher 14,500 20,816 2,760 3.50% 291.9% 14,844 12.0 1,276,549 1,032
530 Remicon 147 163 50 -0.68% 104.2% 11,566 9.3 10,084,117 8,151
521 Genco Tour Bureau 101 114 88
-
11.40%
7.4% 11,110 9.0 2,015,607 1,629
517 Hotel Mongolia 815 977 350 1.88% 45.5% 8,150 6.6 8,954,929 7,239
Source: MSE, Bank of Mongolia, Eurasia Capital
Selected Non-MSE TOP-20 Member Leading Market Cap Companies (August 15-19, 2011)
Code Name
Price
MNT US$
Market Cap
MNTmn US$mn
Performance
w-o-w y-t-d
Daily Turnover (52Wk
Avg)
MNT US$
1Wk turnover
(MNT)
3 UB Hotel 49,000 39.61 16,430 13.3 4.26% 78.2% 252,548 204 98,000
191 Eermel 2,800 2.26 9,742 7.9 -6.83% -2.6% 423,176 342 559,565
71 Darkhan Nekhii 7,500 6.06 8,291 6.7 11.91% 53.1% 1,138,274 920 1,605,000
208 Makh Impex 2,000 1.62 7,601 6.1 -6.98% 11.1% 1,288,957 1,042 2,888,390
531 Nako Tulsh 275 0.22 3,469 2.8 -1.79% -15.4% 4,405,947 3,561 554,125
Source: MSE, Bank of Mongolia, Eurasia Capital
www.eurasiac.com 10

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
Performance of MSE Stocks Traded (August 15-19, 2011)
Code Name
Price Performance Market Cap
Daily Turnover
(52Wk Avg)
Close 52 Wk high 52 Wk low w-o-w y-t-d MNTmn US$mn MNT US$
460 Shivee Ovoo 27,100 62,300 5,750 -15.05% 108.5% 363,658 294.0 6,253,773 5,055
90 APU 3,210 3,750 1,580 3.22% 61.3% 238,464 192.8 13,047,988 10,547
309 Sharyn Gol 15,705 35,099 4,200 -3.29% 49.6% 133,869 108.2 1,778 1
209 Mongolian Telecom 3,000 4,501 2,500 -3.23% -14.3% 77,611 62.7 1,398,884 1,131
135 Suu 78,000 96,543 3,200 -19.21% 271.7% 26,832 21.7 370,244 299
524
Mongolia Development
Resources
1,800 2,300 1,038 -2.70% 38.5% 24,750 20.0 3,853,782 3,115
529 Anod Bank 586 586 586 0.00% 0.0% 23,099 18.7 10,084,117 8,151
520 Zoos bank 1,160 1,160 1,160 0.00% 0.0% 17,013 13.8 2,015,607 1,629
3 UB Hotel 49,000 55,000 26,100 4.26% 78.2% 16,430 13.3 252,548 204
13 Bayangol Hotel 37,000 37,005 22,000 5.71% 54.8% 15,653 12.7 1,170,972 947
22 Talkh Chikher 14,500 20,816 2,760 0.00% 291.9% 14,844 12.0 1,276,549 1,032
530 Remicon 147 163 50 -0.68% 104.2% 11,566 9.3 4,405,947 3,561
521 Genco Tour Bureau 101 114 88 9.78% 7.4% 11,110 9.0 16,362,356 13,226
191 Eermel 2,800 6,468 1,300 11.91% -2.6% 9,742 7.9 423,176 342
71 Darkhan Nekhii 7,500 10,780 2,400 -6.83% 53.1% 8,291 6.7 1,138,274 920
208 Makh Impex 2,000 4,866 1,250 -6.98% 11.1% 7,601 6.1 1,288,957 1,042
17 Atar Urguu 37,500 37,500 16,000 1.90% 108.3% 6,530 5.3 149,385 121
2 Mongol Savkhi 1,750 3,839 450 1.45% 218.2% 4,332 3.5 341,367 276
88 Gutal 2,470 8,467 700 -20.32% 229.3% 3,998 3.2 44,162 36
531 Nako Tulsh 275 352 229 -1.79% -15.4% 3,469 2.8 7,112,831 5,750
379 Material Impex 2,200 3,670 1,955 -4.35% -12.0% 3,010 2.4 5,634 5
25 Moninjbar 150 170 101 0.67% 30.4% 2,380 1.9 350,528 283
38 Mon-It Buligaar 4,300 10,500 4,000 -4.44% -50.6% 1,721 1.4 156,767 127
9 Mongol Nekhmel 3,350 7,970 900 -14.10% 157.7% 1,588 1.3 57,606 47
527 Olloo 115 178 100 0.00% -23.3% 1,116 0.9 6,317,022 5,106
97 Sor 1,200 2,000 556 -4.00% 60.0% 1,070 0.9 188,474 152
214 Tav 9,000 15,555 295 -7.22% 2950.8% 1,033 0.8 33,526 27
34 Gazar Suljmel 5,110 6,900 3,002 -11.90% 13.6% 926 0.7 28,993 23
264 Bishrelt Industrial 1,030 2,200 700 0.00% -48.5% 722 0.6 696,128 563
459 Ikh Barilga 1,400 1,955 500 0.00% 180.0% 556 0.4 16,531,711 13,363
23 MONNOOS 1,380 1,600 1,100 15.00% 1.5% 484 0.4 2,959 2
263 Guril Tejeel Bulga 750 1,420 550 -0.13% 23.0% 428 0.3 11,840 10
353 Gan Kherlen 3,005 5,284 750 -14.94% 300.7% 300 0.2 13,502,497 10,914
279 Chandmana Tal 1,700 1,700 345 1.67% 34.4% 254 0.2 623 1
21 Durvun-Uul 770 1,613 400 -14.44% 92.5% 234 0.2 6,638 5
523 Dornod Auto Zam 2,244 2,244 2,244 0.00% 0.0% 168 0.1 11,047,661 8,930
316 Mongol Shir 355 410 300 0.00% 1.4% 98 0.1 14,706,494 11,888
378 Khasu Mandal 253 253 170 0.00% 29.7% 79 0.1 70,044 57
19 Khereglee Impex 1,385 1,385 575 32.16% 140.9% 73 0.1 171,148 138
179 Kharkhorin 132 132 100 14.78% 32.0% 71 0.1 59 0
308 Bulgan Undraga 462 462 350 0.00% 32.0% 52 0.0 119,114,966 96,284
443 Gobi Shand 201 201 201 0.00% 0.0% 36 0.0 4,264,071 3,447
449 Selenge Impex 151 151 151 0.00% 0.0% 24 0.0 174,502 141
395 Buteel 100 100 100 0.00% 0.0% 23 0.0 95,030,224 76,816
385 Uujim Khangai 155 155 155 0.00% 0.0% 21 0.0 3,452 3
375 Zavkhan Teever 90 90 90 0.00% 0.0% 12 0.0 266 0
422 Ulaankhotgor 80 80 80 0.00% 0.0% 8 0.0 7,087 6
476 Barilga Corporation 405 405 405 0.00% 0.0% 4 0.0 1,983,002 1,603
352 Chandmani Dundgobi 20 20 20 0.00% 0.0% 1 0.0 4,018 3
515 Ulaanbaatar…. 0 0 0 0.00% 0.0% - - 8,954,929 7,239
526 Darkhan Metalurgical Plant 0 0 0 0.00% 0.0% - - 641,311 518
451 Khotgor 0 0 0 0.00% 0.0% - - 16,629 13
Source: MSE, Bank of Mongolia, Eurasia Capital
www.eurasiac.com 11

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
Silk Road Mongolia Index* Companies Performance (August 15-19, 2011)
Name Symbol Currency
Close
Price
MktCap Price Performance
www.eurasiac.com 12
Daily Volume
(52Wk)
US$mn 52 wk high 52 wk low w-o-w y-t-d US$mn
IVANHOE MINES LTD IVN:US USD 18.13 12,877.4 29.29 15.15 -12.75% -20.9% 45.48
CENTERRA GOLD INC CG:CN CAD 20.49 4,904.5 23.23 13.99 2.19% 4.9% 12.25
MONGOLIAN MINING CORP 975:HK HKD 8.19 3,892.2 11.50 7.02 -4.99% -9.7% 7.48
SOUTHGOBI RESOURCES LTD 1878:HK HKD 73.10 1,716.1 130.90 72.00 -2.40% -26.5% 1.39
WINSWAY COKING COAL HOLDINGS 1733:HK HKD 2.02 982.2 4.91 1.80 -5.16% -56.7% 13.36
MONGOLIA ENERGY CORP LTD 276:HK HKD 0.76 644.0 3.44 0.74 -3.80% -67.2% 5.37
BAGANUUR JSC BAN:MO MNT 19,150 324.7 42,000 4,500 -4.25% 82.4% 0.08
TAVAN TOLGOI JSC TTL:MO MNT 730,000 310.8 1,440,000 311,000 0.00% 26.7% 0.02
SHIVEE OVOO JSC SHV:MO MNT 27,100 294.0 62,355 6,000 -1.85% 108.5% 0.01
HUNNU COAL LTD HUN:AU AUD 1.07 273.7 1.78 0.83 -13.77% -20.2% 1.07
ASPIRE MINING LTD AKM:AU AUD 0.44 248.1 1.14 0.07 -14.56% -8.3% 1.01
PETRO MATAD LTD MATD:LN GBp 80.00 243.7 211.00 67.50 -14.89% -34.4% 0.54
ENTREE GOLD INC ETG:CN CAD 1.83 213.6 3.47 1.75 -12.44% -47.3% 0.35
APU JSC APU:MO MNT 3,210 192.8 3,795 1,590 3.55% 61.3% 0.01
ORIGO PARTNERS PLC OPP:LN GBp 38.38 191.8 54.13 26.50 -2.22% -6.4% 0.17
PROPHECY RESOURCE CORP PCY:CN CAD 0.62 120.3 1.11 0.36 5.08% -28.3% 0.98
SHARYN GOL JSC SHG:MO MNT 15,705 108.2 36,553 5,600 -1.84% 49.6% 0.09
CENTRAL ASIA METALS PLC CAML:LN GBp 75.88 108.1 104.50 73.25 -2.09% -15.9% 0.05
EAST ASIA MINERALS CORP EAS:CN CAD 1.05 83.0 8.55 1.03 -35.19% -87.2% 1.55
VOYAGER RESOURCES LTD VOR:AU AUD 0.08 78.5 0.13 0.01 7.14% 39.9% 0.10
NORTH ASIA RESOURCES HOLDING 61:HK HKD 0.53 77.4 1.64 0.48 0.00% -41.8% 0.97
XANADU MINES LTD XAM:AU AUD 0.40 77.1 0.80 0.35 -24.04% -30.1% 0.05
MONGOLIA INVESTMENT GROUP LT 402:HK HKD 0.06 73.1 0.22 0.05 -7.46% -58.1% 1.30
MONGOLIAN TELECOM JSC MCH:MO MNT 3,000 62.7 4,501 2,500 0.00% -14.3% 0.00
ERDENE RESOURCE DEVELOPMENT CORP ERD:CN CAD 0.65 59.5 1.84 0.29 -4.41% -47.6% 0.05
HARANGA RESOURCES LTD HAR:AU AUD 0.20 39.0 0.74 0.16 -13.04% -68.8% 0.04
BDSEC JSC BDS:MO MNT 4,100 36.5 6,500 2,212 2.50% 64.0% 0.01
GOBI JSC GOV:MO MNT 5,400 34.1 8,000 4,900 4.25% -3.6% 0.01
SOLARTECH INTERNATIONAL HOLD 1166:HK HKD 0.18 29.3 1.78 0.17 -7.18% -81.1% 4.05
ASIA COAL LTD 835:HK HKD 0.11 28.4 0.32 0.10 0.00% -58.0% 0.04
ADUUNCHULUUN JSC ADL:MO MNT 9,210 23.5 36,100 740 0.10% 15.1% 0.00
Source: Bloomberg, Eurasia Capital
*Note: MonBiz Mongolia Index and MonBiz Hong Kong Index were acquired by Silk Road Management and rebranded to Silk Road Mongolia
and Silk Road Hong Kong indices, respectively, on January 11, 2011.
Rentsendorj Yondon
rentsendorj.yondon@eurasiac.com
Sherzod Rakhimov
sherzod.rakhimov@eurasiac.com

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
PROPERTY PRICE
Residential Property Prices in Ulaanbaatar
Source: Eurasia Capital
M&A DEAL SUMMARY
Target Company (TC) Buyer
SWFs Deals
US$/sqm
Iron Mining China Investment Corp.
Iron Mining Temasek Holdings/ Hopu
Investment Management
Buyer
Country
TC Listing TC Sector TC Reserves Stake, % Deal Terms
www.eurasiac.com 13
Announce
Date
CHN N/A Iron ore N/A N/A US$700mn 29.10.09
SG/ CHN N/A Iron ore N/A N/A US$300mn 01.04.08
SouthGobi Resources China Investment Corp. CHN N/A Coal 122.3mn tn N/A US$500mn 26.10.09
SouthGobi Resources China Investment Corp., CHN/SG N/A Coal 122.3mn tn N/A US$50mn each in 29.01.10
Temasek Holdings
HK IPO
Recent EBRD Deals
Energy Resources EBRD Int-l N/A Coal N/A N/A US$180mn loan 19.02.10
APU EBRD Int-l MSE Food & N/A N/A US$25mn
22.01.10
Beverages
convertible loan
Petro Matad EBRD Int-l AIM Oil & Gas 638mn bbls
17 US$6mn
18.12.09
resources
convertible
Leighton Mongolia EBRD Int-l N/A Mining N/A N/A US$35mn loan 10.11.09
Private Equity Deals
Well Delight Holdings
Ltd/ Tugrugnuuriin
Energy LLC
North Asia Resources
Group
Ikh Shijir Erdene LLC/
Sun Progress
1000
950
900
850
800
750
700
Ming Hing Waterworks
Holdings Ltd
HK HKSE Coal, Copper,
gold
Green Global Resources CHN HKSE Iron ore 148.9mn tn
iron, 180,000
tn copper*
Solartech International
Holdings
Two Tungsten mines Bestway International
Holdings
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
CHN HKSE Gopper, gold,
silver
N/A 100 US$245mn 30.05.10
1.44mn tn
copper, 4 tn
gold, 196 tn
silver
100 US$227mn 16.12.09
N/A US$192mn 04.05.10
HK N/A Tungsten N/A 100 US$122mn 03.07.09

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
Winsway Coking Coal Hopu Investment/ two
Chinese firms
CHN N/A Coal N/A 20 US$110mn 02.04.10
Millennium Hong Kong Mongolia Energy Corp Ltd HK N/A Ferrous 504mn tn 100 US$35mn 24.06.09
Group Ltd/Concession
area
Resources
Taishen Development
LLC
North Asia Resources Group HK N/A Iron ore 79mn tonnes 100 US$25.1mn 29.07.10
Polo-Peabody JV Winsway Coking Coal
CHN N/A Uranium, N/A 50 US$25mn 26.05.10
Holdings
Coal
Aspire Mining Ltd SouthGobi Resources CN ASX Ovoot Coking
Coal Project
N/A 20 US$20.10 25.10.10
Gobi Coal and Energy Origo Partners Plc UK N/A Coal 320mn tn
resources
21.3 US$15mn 27.11.09
Khurgatai Khaikang
LLC
Aspire Mining Ltd AUS N/A Coal N/A 100 US$7.73mn 25.11.09
Land Mongolia Corp Gloworks Co Ltd SK N/A N/A N/A 50 US$7.63mn 13.07.09
Mongolia Resource
Company
Alamar Resources AUS ASX Gold projects N/A 100 US$4.85mn 27.10.10
MKMN HandySoft Corp SK N/A N/A N/A 51 US$4.19mn 21.12.09
Kinkora Ltd Origo Partners PLC UK N/A Bronze Fox
copper-gold
prospect
N/A 25 US$3mn 13.09.10
Ovoot Coking Coal Windy Knob Resources AUS N/A Coal N/A 100 US$3.5mn
26.11.09
Project
+ Shares
Mongolian BML LLC Blina Diamonds AUS N/A Coal 250mn tonnes 100 US$2.18mn 30.09.10
Erdenetsogt project Mangreat Ltd British
Virgin
Islands
N/A Coal N/A 5 US$2mn 01.11.10
"The Mongolian
Company"
Xanadu Mines AUS N/A Thermal Coal N/A 100 A$1mn Jun-10
Troy Mongolian Alt Meritus Minerals CAN N/A Gold N/A 100 US$0.5mn + 20.01.10
Resources
Shares
Lotus Minerals
Company of Mr. James N/A Plus Fluorspar N/A 100 GBP200,000 29.10.10
Mongolia
Rodriguez de Castro
Markets projects
Argalant Gold-Copper Voyager Resources AUS N/A Gold, Copper N/A 100 US$50,000
19.01.10
Project
+ Shares
PanAsian Petroleum Sunwing Energy Ltd CAN N/A Oil, gas N/A 100 All Shares 18.11.09
"The Mongolian North Asia Resources
HK N/A The Land N/A 100 N/A 01.07.10
Company"
Group/Golden Pogada LLC
rights licence
to build Dock
Buyan Coal Project Hunnu Coal AUS ASX Coal N/A 60% N/A 08.06.10
Tsohio Coal Project Hunnu Coal AUS ASX Coal N/A 60% N/A 02.06.10
Amguulan LLC Lotus Resources PLC UK N/A N/A N/A N/A N/A 19.06.09
Erdenes Thermal Coal
Project
Hunnu Coal AUS ASX Coal 140-180mn tn 80 N/A 11.03.10
Tsant Uul Coal Project Hunnu Coal AUS ASX Coal 50-100mn tn 90 N/A 26.05.10
Other Deals
Western Prospector CNNC CHN Delisted Uranium 20mn lbs
(9,525 tn)
69 US$18.5mn 15.04.09
Red Hill Energy Prophecy Resource Corp CAN TSX Coal 1.5bn tn
100 Merger
21.01.10
resources
All Shares
SMG Oil & Gas BKM Management
AUS ASX Oil, gas N/A 100 All Shares,
A$0.01/share
offered
10.03.10
Source: Bloomberg, Eurasia Capital
www.eurasiac.com 14

Mongolia Weekly (August 15-19, 2011) August 22, 2011 (Monday)
CONTACTS
Research:
Sardor Koshnazarov Head of Research, Oil & Gas sardor.koshnazarov@eurasiac.com
Dosbergen Musaev Chief economist dosbergen.musaev@eurasiac.com
Temuulen Munkhbaatar Analyst temuulen.munkhbaatar@eurasiac.com
Akmal Aminov Associate, Metals & Mining akmal.aminov@eurasiac.com
Rentsendorj Yondon Associate, Mongolian equities rentsendorj.yondon@eurasiac.com
Sales and Trading:
Zhyldyz Sadyralieva Associate zhyldyz.sadyralieva@eurasiac.com
Bolor Ulziisaikhan Associate bolor.ulziisaikhan@eurasiac.com
Hoosniddin Hakimov Associate hoosniddin.hakimov@eurasiac.com
Addresses:
MONGOLIA
Suite 65, 6 th Floor, Grand Office Center
Jamiyangun Street 12, 1 st Khoroo,
Ulaanbaatar
Tel: +976 7013 0078
Fax: +976 7013 0078
HONG KONG
33/F One International Finance Centre
1 Harbour View Street, Central,
Hong Kong
Tel.:+852 2824 8716
Fax: +852 2166 8999
Eurasia Capital is a pan-regional investment bank with a focus on Mongolia and Central Asia. Headquartered in Ulaanbaatar, the
Firm offers cross border M&A and advisory, capital raising, sales & trading and research services to its international and regional
clients including government agencies, major energy and resource companies, sovereign wealth funds, private equity groups and
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This 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 any
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www.eurasiac.com 15