Business
Mongolia Growth Group Ltd. Publishes April 2013 Monthly Letter to Shareholders
Mongolia Growth Group Ltd. Publishes April 2013 Monthly Letter to Shareholders Calgary, Albe...
About this update from Mongolia Growth Group Ltd.
[{"type":"text","content":"Mongolia Growth Group Ltd. Publishes April 2013 Monthly Letter to ShareholdersMongolia Growth Group Ltd. Publishes April 2013 Monthly Letter to Shareholders\nCalgary, Alberta CANADA, June 04, 2013 /FSC/ - Mongolia Growth Group Ltd. (YAK - TSX Venture), is pleased to announce the release of its April 2013 letter to shareholders.\nApril 2013 Shareholder Letter\nTo the Shareholders of Mongolia Growth Group Ltd.,\nDuring the month of April, we did not purchase or sell any properties. However, we have remained busy in terms of leasing properties and undertaking preventative maintenance that will likely save us substantially in terms of future maintenance expenditures. We have also undertaken a strategic review of our operations with the goal of improved business focus and reducing our costs. In particular, we are looking at disposing of additional assets that are either difficult to manage or too small to be material to our operations. Over time, we want to focus our company on those assets that are larger and have better returns.\nSwitching into economics, the last few months have been quite busy for Mongolia in terms of news flow and I think it's important to look at some of these events and what they mean for Mongolia's economy.\nRepeal of SEFIL or Strategic Entities Foreign Investment Law- The repeal of this law will open numerous sectors of the economy to foreign investment as long as the investor company is not a state-owned entity. In addition, the repeal of SEFIL reduces restrictions on the sizes of various investments. The goal of repealing SEFIL is to allow numerous deals to move forward more rapidly and should lead to increased foreign investment in Mongolia. This repeal is part of an overall trend to attract foreign investment. \nTurquoise Hill Funding Negotiations- Rio Tinto is in discussions with various lenders including the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC),  Multilateral Investment Guarantee (MIGA),   14  banks from 7 countries and sovereign trade organizations from the US, Canada and Australia in order to obtain approximately USD $4 billion in funding to continue the expansion of the Oyu Tolgoi mine1. Mongolia's GDP in 2012 was $10.0 billion2. This increase in funding will clearly impact future GDP growth substantially.\nChi...