When acquiring assets in another country Growing Demand is a...

When acquiring assets in another country Growing Demand is a important ingredient. A growing demand increases the value of any resource without any cost to the business developing the asset. All the companies I like to invest long term with have the underlining support of Demand.

Just as growing Demand for sound currency is helping Gold explorers and producers. Coal is going through a real boom in Developing Nations. The irrational carbon tax will be considered in the future as one of the single worst economic decision in Australian history in my opinion. Mongolia is not afflicted by such stupidity.

Carbon Dioxide is part of the life cycle of the planet, the same bad science which said we were going into an ice-age now says we are all doomed from rising temperature caused by man. Actually an increase in temperature would be great for feeding millions of starving people right now but the Breathing Tax to unelected bankers and elites is not the topic of this post! (Google Climategate!)

Synergies of Scale: A Vision of Mongolia and China's Common
Energy Future By: Nathan Borgford-Parnell1

This PDF is a great place to start talking about Demand. Demand alone makes licenses in Mongolia very interesting IMO. I certainly don't agree with everything in the Document but we can all agree that the energy Demands support these asset acquisition in Mongolia.

Looking at the past few years China's rapid economic growth has been accompanied by a large increase in demand for energy. As approximately 65 percent of China's total energy consumption is sourced from coal, a number of coal-related economic stimulus measures have been put forward by China's National Development and Reform Commission (NDRC) over the years. The first tranche of $34.3 billion of central government stimulus funding was allocated in April 2009.

Mining is crucial to Mongolia's development and the mining sector has been a major contributor to the country's GDP. Once major mining projects go into production, Mongolia should see a significant increase in GDP growth, estimated at over 13% for 2011-12.

Led by Demand in China, Energy Use Is Projected to Rise 53% by 2035 -

http://www.nytimes.com/2011/09/20/business/energy-environment/energy-demand-is-expected-to-rise-53-by-2035.html

Coal has won the energy race last decade and will win it this decade without a doubt. The sheer volume alone in China makes any acquisition in Mongolia a very desirable asset. This direction of the Company means a massive amount of leverage through Demand alone. Without doing anything the license is increasing in value.

How does this apply to ROB. ROB has quite rightly seen the potential of this growing market and has the ability to raise the capital to look at more licenses. A very good sign over the next 6 months!

In my opinion ROB has a very long potential uptrend as coal demand will, by all accounts, be spiking 2012. This Demand means that ROB may be undervalued for some time to come. Still obvious early days but the next 6months are going to be a very sound uptrend.

PS - DYOR! This is all just my research and opinions and could be all wrong!

Kind Regards