mongolian risk-reward

Excerpt from AFR article yesterday quoting Travis Hamilton, who runs an open-ended investment fund set up to invest in Mongolia.

"...moves last week by the Mongolian government to suspend mining at Toronto-listed SouthGobi's coalmines are worrying. 'Unquestionably I think the issue of the SouthGobi transaction with Chalco is based on anti-Chinese sentiment which is a populist view in Mongolia."

Its just another "straw" to throw on to the back of the DRG camel...and I am not sure we will get any significant price uplift until this and other issues - such as general market disinterest - abate. I have not seen the spec end of the market this bereft since the GFC. I have been following markets since 1998 and the GFC is the only other time I recall it being this illiquid.

The gist of the AFR article was quite positive on investment in Mongolia and it does seem to be a few similar styled articles around lately, suggesting that maybe the "Mongolia Story" may have another leg-up ahead.

However, I sense we need the ASX to awaken from its slumber, and then for volumes to pick up before we start to see fair value reflected in the price of any number of small companies that have a good story to tell. Until then, deep pockets and patience are required.