A Mongolian company, Steppe Gold, just listed on the Toronto Stock Exchange (TSX) at a valuation of US$25 million. The exchange- known for its focus on mining- is popular amongst exploration companies. This project, though in its infancy, is viewed as a baby step in developing 140,000 of ounces of precious metals in the first year of production. Perhaps for this reason, Steppe’s leadership team have described it as ‘low cost, low risk.’
On 21st May, an economic forum was convened in Ulaanbaatar with the aim of encouraging investment in Mongolia through Public-Private-Partnerships (PPPs). PPPs can take many forms- with varying degrees of success.
China has a population of nearly 1.4 billion. The IMF project 6.6% growth in 2018 (IMF). It is overwhelmingly Mongolia’s largest trading partner, with nearly 80% of exports going south (NSO). With closure of mines in Northern China- due to environmental restrictions- it has a growing appetite for the many commodities Mongolia exports.
Mongolia is undergoing an economic boom thanks to mining, and there's
an urgent need for housing development in the capital, Ulaanbaatar.
International-standard, luxury ger camps, run with sustainability in mind, present perhaps the most exciting opportunity for future development in the Mongolian hospitality industry.
Mongolia has enormous potential for the development of renewable energy. After all, it is a country the size of Western Europe, with a population of only three million but with 250 days of sunshine per annum. It is also on the doorstep of both China and Russia.
We’ve written about the Mongolian Stock Exchange (MSE) and the remarkable returns it delivered in 2017. Though small and thinly traded, it provides a barometer of investor interest in the country since it is one of the simplest means to gain exposure to the industrial base of the country.
Speculation has been rife as to where the reclusive North Korean dictator, Kim Jong Un, and the US President, Donald J Trump will meet. Geneva? Too far. Singapore? Too Western. Beijing? Too sensitive. Ultimately, it’s too early to call, but Ulaanbaatar has been revealed by a South Korean diplomat to have made the short list.
Ratings agencies, though private organisations, wield enormous influence on investor perceptions of a country or economy. Whether Standard and Poor’s, Moody’s or Fitch, silky praise or clinical castigation, has a direct effect on the price of sovereign debt and bears heavily on investment decisions in Hong Kong, Singapore or London.
Mongolian Properties is the oldest, largest, and most reputable Mongolian real estate agent. We are a real estate intermedeiary and advisory firm offering agency, representation, property, management, property valuations, interior design, furnishing and financial intermediation services.
