Between Heaven & Hell…While after reading STGO’s regulatory “X” files, what i was thinking is OSC & TSX maybe “Heaven” to them. Selective disclosures for material events, sold 39% for only $8.3M even reasonable higher offers lined up, breaking basic IFRS rules – non comparable 11X more financial costs eating EBITDA & FCF, 2-5 times more debt than equity, adding + 50M to Phase-II without any meaningful explanation & so on……STGO can do whatever they want at TSX……..But seems in MSE might not be like TSX…..More tight control & in-depth analysis expecting at MSE for STGO’s 69,533,717 common shares that waiting for its register. TSX 68,422,607 + MSE 1,111,110 shares. Why? In my opinion:
- Mongolia is developing country comparing to Canada. That’s why they under pressure international organizations regularly. Latest well known case is FATF (Financial Action Task Force) grey list. Mongolia has been added in that list 2 times before. Last year mongolia has been removed from the that greylist … https://jargaldefacto.com/article/mongolia-has-been-removed-from-the-fatf-greylist
- Almost most of financial sector’s participants affected FATF’s guidance, I guess. ……. https://www.mondaq.com/money-laundering/885948/legal-briefing-on-combating-money-laundering-and-terrorism-financing-of-mongolia ……. “…Under the Procedure, the reporting entities broadened as banks, financial institutions, insurance companies, licensed security market entities, natural persons or legal persons conducting pawnbroker activities, savings and credit cooperatives and natural or legal persons conducting foreign currency exchange activities etc.”
- Found very interesting article in one page………. https://defacto.mn/wp-content/uploads/2020/01/191227-Gazette-English-No.12-125.pdf ….. first page dedicated to FATF, but in last page, headline ”MSE update“…The State Department Store has never distributed dividends to their small shareholders claiming that the company has been operating at a loss for numerous years. However, the Financial Regulatory Commission found that the company was profitable and the losses were by design….” Seemed, minority shareholders requested their dividend and claimed that majority shareholders violating their right. Then that case escalated, “…The Financial Regulatory Commission approached the District Court alleging that the State Department Store is misusing the interests of 44,000 shareholders whose shares equate to 15% of the store with the remaining 85% of the shares are concentrated within one family who are not distributing dividends to the smaller shareholders …”
TSX shareholders may not interested in dividend, however, both bagger & dividend creating value to shareholders. Even MSE CEO said: … enjoy the benefits of growth in share prices and getting dividends…..
https://www.mongolianminingjournal.com/a/71536 What if all that losses were by design? Illogical when positive EBITDA & cash everyday couldn’t create EPS….IMO