"1848 and
Beyond"
posted
August 4, 2005
"An
African Queen"
posted August 11, 2005
"Near Hit"
posted August 16, 2005
"Orko
Gold"
posted August 18, 2005
"Mr.
Smith Goes To Hungary"
posted September 1, 2005
"A
Letter To
President Bush"
posted September 8, 2005
"Mr
Clarke -
Call In The Boys"
posted September 12, 2005
"Orezone"
posted September 23, 2005
"U.S.
Gold Corp."
posted September 29, 2005
"Mr.
Prime Minister"
posted October 13, 2005
"The
Business of Hungary is Business!"
posted October 31, 2005
"Then
And Now"
posted November 9, 2005
"50
Relatives Worse Than Yours"
posted November 14, 2005
"Bunker
Hunt-Silver-China"
posted November 28, 2005
"The
Currency of Mass Destruction"
posted December 5, 2005
"Sonesta
International Hotels Corporation"
posted December 29, 2005
"Northern
Star Mining"
posted January 16, 2006
"Other
People's Money -Enron & Martin Siegel, Esq."
posted January 28, 2006
"Your
Money Is Not Yours"
-Enron & Martin Siegel, Esq.
posted February 9, 2006
"A
Tribute to
Rudy Giuliani"
posted February 15, 2006
"Interview
with
Robert McEwen-
U.S. Gold Corporation"
posted February 22, 2006
"Sparton
Resources"
posted March 1, 2006
"Harvest
Gold"
posted March 2, 2006
"Midway
Gold
Corporation"
posted March 23, 2006
"Pocketful
Of
Miracles"
posted April 8, 2006
"J.P.
Morgan Offers Advice To Ken Lay"
posted April 11, 2006
"The
Principal Guest Was Missing"
posted April 25, 2006
"Ken
Lay's Legacy"
posted May 8, 2006
"Gateway
Gold:
It's A Gold Story"
posted May 15, 2006
"Northern
Star
Mining Corp."
posted May 19, 2006
"I
Am An Immigrant!"
posted June 7, 2006
"Oil
& Gas
Energy Crisis Solution"
posted July 3, 2006
"Let
There Be Sunshine" -
Kirk Kerkorian
posted July 12, 2006
"The
Age of Mediocrity"
posted July 19, 2006
"Silver
In The
Twenty-First Century"
posted August 16, 2006
"Silver
Wheaton - SLW"
posted August 28, 2006
"A
Matter of Reasonable Doubt"
Ken Lay - Enron
posted August 30, 2006
"Brilliant
Mining Corp."
posted September 17, 2006
"The
Kennedy-Nixon debate revisited"
posted October 4, 2006
"The
Arrival of the
Nickel Billionaires"
posted October 18, 2006
"Global
Options
Group, Inc."
posted November 1, 2006
"This
Year I'm Voting For Dick Nixon"
posted November 7, 2006
"Aero
Mechanical Services, Ltd"
posted November 17, 2006
"Entree
Gold Inc."
posted December 13, 2006
"WisdomTree
Investments, Inc."
posted December 26, 2006
"My
Father Died In Auschwitz"
posted January 19, 2007
"Lexam
Exploration, Inc."
posted February 11, 2007
"Robert
Friedland -
The Man of The Year"
posted February 21, 2007
"Rubicon
Minerals Corp."
posted March 1, 2007
"Warren
Buffett - Franklin Roosevelt"
posted March 15, 2007
"Golden
Valley Mines, Ltd"
posted April 21, 2007
"Brilliant
Mining Corp."
posted May 22, 2007
"Bayswater
Uranium Corp."
posted May 30, 2007
"Ghengis
Kahn Was Hungarian"
posted May 31, 2007
"Portal
Resources"
posted June 12, 2007
"Aldershot
Resources Ltd."
posted July 16, 2007
"Entrée
Gold Inc."
Follow Up Report #1
posted July 24, 2007
"The
Age of Special 'Corporate' Relationships"
posted August 23, 2007
"Interview
with
David Hjerpe - Newmac Resources, Inc."
posted August 27, 2007
"Interview
with
Jim Davis - President of Leeward Capital Corporation"
posted September 4, 2007
"Interview
with Professor William Pfaffenberger - Torch River
Resources"
posted September 22, 2007
"Ghengis
Kahn Returns"
posted September 27, 2007
"Jasper
Mining Corporation"
posted September 27, 2007
"Gold
Indexed Bonds"
posted October 11, 2007
"Tagish
Lake Gold Corp."
posted November 1, 2007
"Stalin
& Chavez"
posted November 9, 2007
"Sanj
Bayar -
The Prime Minister of Mongolia"
posted November 15, 2007
"The
Mongolian Wakeup Call"
posted November 16, 2007
"Watergate
Saved Nixon's Life"
posted November 28, 2007
"No
More Munich -
The Mongolian Version of 1938"
posted December 11, 2007
"Sir,
Do Not Abdicate"
posted December 27, 2007
"Mongolian
Gold"
posted January 8, 2008
|
|
BERAL,
INC.
Andrew G. Racz
Director of Research
300 East 54 Street, Suite 26C
New York, New York 10022
Telephone: (212) 319-6949
Fax: (212) 753-1944
E-mail:
mlikar@aol.com
February
4, 2008
"The Unexpected Mongolian Dilemma"
We
are not the best friend you have
got …
We
are the only friend you have got! |
|
|
New forces have entered the picture.
Last week, China jumped into the Rio Tinto saga. Chinalco
and Alcoa, both at 12 percent stake in Rio Tinto. Aluminum
Corp. of China, Tinto put up $14.5 billion for a minority
stake of Rio. China is obviously interested in the world’s
mineral resources and it is forcefully entering global
business.
The following issues should now be considered.
The purchase by Chinalco has been approved by the Chinese
authorities at the highest level. Furthermore, the combination
of various banks in China could regiment $120 billion
necessary to consider buying the control in Rio.
Up until this event, Mongolia negotiated
with the Ivanhoe group which is 42 percent owned by Rio.
The negotiating team was lead by the representatives of
Rio. A smaller third party, Entree Gold, is 16.5 percent
owned by Rio, 15.5 by Ivanhoe, or approximately 20 percent
owned and controlled by Rio.
The negotiations are likely to terminate
by the end of June. The Prime Minister Sanj Bayar stated
that he wants to conclude an agreement with foreign investors
by the parliamentary elections in mid 2008.
Now comes the unwelcome Chinese connections.
China is the most commodity hungry country, China has
money, and China does not necessarily adopt the interest
and methods of the board or Rio Tinto when it comes to
Mongolian minerals. Among others, China is pro-gold. It
has recently established the Shanghai Gold Market. It
has very little gold, but it is acquiring gold at government
level, banking level, and retail trading level. Five years
from now, they may be the second largest gold players
and reserve asset owners in the world.
China’s appetite for copper is insatiable.
The liquid resources for the Far Eastern
and Middle Eastern nations maybe $2,000 billion of which
they invested in western financial institutions about
$85 billion.
It should be mentioned that the so-called
financial agreement between Mongolia and the Ivanhoe Group
is only about $3 billion. The rest is coming from future
mining. If one assumes an eventually $2,000 for gold,
the 32 million ounce suspected in Mongolia represents
$64 billion, a negligible sum to the free floating liquid
assets of $2,000 billion in the hands of the far eastern
and middle eastern countries.
The logical question comes up:
Who calls up whom? Who pays whom?
Keeping the value of gold both at the
current $1,000 price and the eventual $2,000 price, I
have brought my idea “gold-indexed bonds”
to pertinent parties.
If a powerful investment banker would
monetize Mongolia’s gold reserves and raise against
future production, $1 - 2 billion, Mongolia could start
its development program immediately, and the potential
$64 billion gold reserves would be reflected in the balance
sheet and market price of Rio Tinto.
Mongolia’s other assets could also
be monetized as well.
The re-evaluation of Mongolia’s
gold would strengthen the hands of the Ivanhoe Group and
enable Mongolia to sign an early financial agreement with
its current western partners instead of permitting itself
to be a soccer ball in Wimbledon.
Ivanhoe and Rio Tinto must maximize its
resources and its potential resources in Mongolia.
Correspondingly, Mongolia may consider
speeding up its current negotiations as it is possible
that the Ivanhoe Group is not the best friend Mongolia
has, but the only friend it has.
Andrew Racz

(Article
74 - posted February 4, 2008)
DISCLAIMER
Information
contained herein is based on data obtained from
recognized statistical services, issuers reports
or communications or other sources believed
to be reliable. However, such information has
not been verified by us and we do not make any
representation to its accuracy or completeness.
Any statement non-factual in nature constitutes
only current opinions which are subject to change.
BERAL INC. or their officers, directors, analysts
or employees may have positions in the securities
or commodities referred to herein, and may as
principal or agent buy and sell such securities
or commodities. An employee, analyst, officer
or a director of BERAL INC. may serve as a director
for companies mentioned in this report. Neither
the information nor any comment expressed shall
constitute an offer to sell or a solicitation
of an offer to buy any securities or commodities
mentioned herein. There may be instances when
fundamental, technical and competitive opinions
may not be in concert. This firm may from time
to time perform investment banking or other
services for or which investment banking or
other businesses from any company mentioned
in this report. |
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e-mail: mlikar@aol.com
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