Mongol Meat Bond….

Posting this only for the levity and “hmmmm, that’s interesting factor”…

from Sainbayar sain@bdsec.mn
to xxxxxxxxxxxxxxxxxxxxxxxxx
date Fri, Sep 2, 2011 at 8:34 AM
subject: Mongol Meat Bond
mailed-by: bdsec.mn

We received this email from our brokerage(BDSec) in Mongolia, of which we have a very small amount of our portfolio allocated. They send some interesting e-mails and we about fell off our chairs laughing at the subject line of this one(Mongol Meat Bond). You can’t help but laugh picturing Goldman Sachs doing some of the things these guys do. To be honest they are very nice but certainly a developing company in a very small economy. The Mongolia investment thesis is compelling though…We obviously thought enough of it to allocate some money there.

There’s no sense in reinventing the wheel so if you’d like to read up on Mongolia and ways to invest you can visit http://www.adventuresincapitalism.com which is run by Harris Kupperman, who runs a fund called Praetorian Capital. He’s a smart guy and has been immersing himself in the topic at hand for a while now. Cheers.

And the full presentation for the bond offering(which is not an everyday thing in Mongolia) is below…it’s a quick powerpoint with some interesting Mongolian info, such as “Corporate Bond income is tax free for individual investors”

Mongol Meat bond offering

Urbana: if you liked it at $1.20 you’re going to love it at…

.97

Yes, after the dust has settled from the colossal meltdown and subsequent meltup of the markets over the last 2 weeks, Urbana corp has gotten hammered down to .97. And to this we’ll present a few things….

1) Urbana’s most recent NAV Calc http://www.urbanacorp.com/Documents/NAV/nav_aug_5_11.pdf

2) the current Market Value of their top two holdings CBOE and NYX as of Friday’s close? 90.6M

3) the current market value of Urbana as of Friday’s close URB.A and URB? 75M

Both the CBOE and NYX shares are fairly liquid. NYX avg.volume is ~3.5 million shares/day and CBOE is ~500k shares/day. So URB owns less than a days worth of NYX and a few days worth of CBOE. So pretty liquid stuff we’re talking about here. Assuming there’s no liquidation discount on the shares they could sell them at Fridays still depressed prices, pay down their debt of 14M to BMO(rate of 2.75% + prime) and still have 75M in the bank or .97/share.

The rest of the assets outlined in the NAV calc are a freebie. Cheers.

Urbana

just throwing this one out…credit goes to Kerrisdale Capital. However their write-up was in Feb and the I feel like people have forgotten about this one.

URB.A….basically paying for public shares of CBOE and NYX…and getting the rest of the holdings for free. I am not a huge fan of buying exchanges these days(volume is getting eaten up via other avenues) or buying anything right now but it’s compelling at 1.25 with a NAV of 1.93.  Not to mention they still have about 2 million worth of shares they can buyback before the end of august.

Below is the NAV Calc provided by Urbana. Regardless of how they come up with the private holdings values the public shares are easily valued and are in and of themselves more than the current price of $1.25

http://www.urbanacorp.com/Documents/NAV/nav_jun_10_11.pdf

Selwyn Resources Ltd. (CVE:SWN)

Who they are:

JV base metal explorer in the Yukon/Northwest territory.

Why you should care:

-The main project, Selwyn,  has scale potential to be one of the largest undeveloped zinc/lead mines

– Located in a politically stable part of the world.  Western Canada is as boring it gets and that’s a good thing.

-They have cash. 100 million Canadian dollars to be exact.  If there’s one over riding problem being an early investor in JV mining projects it’s constant dilution and the threat of running out of money.  The $100 million supplied by Yunnan Chihong Zinc and Germanium Co.  should go along way to funding the $85 million development program over the next 1.5 years.  For every 2 million supplied by Yunnan they will earn a 1% interest in the project. The  end result is a 50:50 joint venture.  Right now, I’m ok giving up 50%, the project is large and it takes alot of the risk out of being an early investor.

– The project is progressing towards bankable feasibility.  There’s already been ALOT of drilling and work done at the site to define the resource.

Numbers will follow.