Erdenes Tavan Tolgoi to pay dividends within this quarter


2019-02-02 12:00 GMT+8


Prime Minister Khurelsukh Ukhnaa has reportedly ordered the Minister of Mining and Heavy Industry Sumiyabazar Dolgorusren, Minister of Finance Khurelbaatar Chimed and the authorities of Erdenes Mongol LLC to wrap up the dividends distribution of Erdenes Tavan Tolgoi JSC (ETT) within the first quarter of this year.

14.75 percent of the ETT stakes were distributed to all citizens at the Parliamentary resolution of April 11, 2012. Each citizen was granted 1072 shares of ETT, which were valued at MNT 933 per share respectively to fulfill an electoral pledge of disbursing MNT 1.5 million to the public; however, the company has been running on a deficit due to commodities market bust until 2017. ETT managed to settle most of its debt in 2017, which allowed the company to allocate dividends for the first time this year from the 2018 profits.

Mr.Khurelsukh remarked, “Mongolians should benefit from the minerals revenue. The first step is to distribute the dividends of Erdenes Tavan Tolgoi JSC. It is well-advised to administer the dividends within the first quarter of this year. The distribution must be properly organized within the legal frames. Let us congratulate the authorities of Erdenes Taval Tolgoi JSC. It is monumental that the debt-ridden company has stabilized its operations, increasing its net profit to MNT 720 billion. Now the profit has to be rendered to the public. I perceive that we should focus on allotting minerals revenue to our citizens.

This is not a cash incentive, but the Government’s obligation to provide the profits earned from natural resources in our country. This will have its merits on Mongolians’ livelihood. It is important that we install the practice of distributing dividends in the first quarter of every year.”

ETT has a total of 15 billion units of outstanding shares; thus, the earnings per share stands at MNT 48. If the board decides to distribute the entire net profits as dividends, Mongolian citizens will be granted a total of MNT 51,456.

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