Invesco Emerging Markets Sovereign Debt ETF V.PCY

RE: Eurasia Capital Research Note on Mongolia

[Zebull]

Here's the relevant note.  It answers a lot of questions on the sales and marketing of PCY's coal production on a going forward basis. Did I hear ka ching $$$$?

Sojits Agrees with Prophecy on Joint Marketing of Ulaan Ovoo Coal

In June 2010, Prophecy Resource Corp. and Sojitz Corp. entered into an exclusive agreement to jointly market thermal coal from Prophecy's Ulaan Ovoo coal deposit. The Ulaan Ovoo project is located within 10km of the Russian border in northern Mongolia and is 120km east of the Central Mongolian Railroad, which links the project to the vast coal markets of Russia and Asia. The project contains 174.5mn measured tonnes, 34.3mn indicated tonnes and 35.9mn inferred tonnes of thermal coal. Sojitz will boost coal trading by about 18% after the agreement with Prophecy. Sojits will market the coal mainly to China through its subsidiary and is also looking to sell to Japan. In addition, a Japanese consortium of Itochu Corp., Sojitz Corp., Sumitomo and Mitsui had also expressed an interest in developing the Tavan Tolgoi strategic coal deposit before the Mongolian Government decided to hire a contract miner for the country’s strategic deposit. For further information on the Tavan Tolgoi deposit development, please refer to Eurasia Capital’s recent Tavan Tolgoi Research Note.

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