Member Info for Dan_LSE

Https://www.facebook.com/photo/?fbid=2648527638853796&set=a.142942626078989

https://www.parliament.mn/en/cv/116/

Sunsteppe Power is a fully owned entity of Sunsteppe Renewable Energy (that's the JV entity), so I believe this is directly relevant to us. This entity then owns CCP Blue Energy (8338418) and Wolfson Energy (8343446
) where Bike is the ultimate beneficiary owner.

First "official" mention of Data Centres, about which ACWA talks plenty.

A meeting was held with representatives of Sun Steppe Power Company to exchange information on the activities and projects of the Khushi Valley Free Economic Zone. During the meeting, views were exchanged on the legal environment of the free zone, the current situation, and the progress of infrastructure construction. Sun Steppe Power Company expressed its interest in cooperating in the fields of renewable energy, hydrogen production, and data centers, and exchanged views on the possibilities of further developing cooperation.

Https://www.newcom.mn

https://www.bcmongolia.org/membership/all-members

https://www.linkedin.com/posts/business-council-of-mongolia_bcm-member-the-business-council-of-mongolia-activity-7442784563040485376-zP9F?utm_source=share&utm_medium=member_desktop&rcm=ACoAABB0Lp8BjYcF_IeVVjjxWWaoMBcQdECD0Z8

Newcomm group joins Mongolia's business council, meaning they will be in the same room with Petro Matad. They have experience from building large renewable projects in Mongolia. Could be just a competitor, but could be a partner too.

Https://fazencapital.com/insights/en/mongolia-pm-resigns-break-parliamentary-deadlock?utm_source=dlvr.it&utm_medium=linkedin

Mongolia's prime minister submitted his resignation on March 28, 2026, seeking to resolve a prolonged impasse in the State Great Khural after weeks of legislative deadlock (Bloomberg, Mar 28, 2026). The resignation follows repeated failures to pass key budgetary and governance measures and underscores the fragility of coalition politics in a 76-seat unicameral parliament (Constitution of Mongolia). For international investors and regional policymakers, the move raises short-term questions about continuity in policy execution — notably in the mining sector that drives Mongolia's external balances — and longer-term concerns over governance credibility.

The immediate domestic context includes stalled appointments and contested committee votes which prevented normal legislative functioning; the Bloomberg report cites the resignation as an explicit attempt to "end political deadlock" (Bloomberg, Mar 28, 2026). While the formal mechanics for selecting an interim executive and calling a confidence vote are defined in Mongolia's laws, execution depends on fragile cross-party bargaining. That process can create windows of heightened uncertainty for contract approvals, mining licensing, and fiscal decisions that have direct real-economy consequences.

Internationally, the political noise arrives when Mongolia's external position is highly concentrated: mining accounts for roughly 90% of merchandise exports and China takes approximately 80-85% of those exports (World Bank, 2024). Those two data points structure most analytical responses: when political risk rises in Ulaanbaatar, the transmission to commodity production and cross-border trade with China is disproportionately large. The interplay of domestic politics and international commodity dynamics makes this a national stability story with measurable implications for regional trade corridors and project financing.

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@Krok since I am invested I have a positive bias. Things that support the positive view:

-- Transformational Farm Out RNS --

I agree it may or may not happen, and we just don't know until it is done. To support your opinion, MATD has been trying for many years to do it and wasn't successful. What supports the positive view is that 4 parties were engaged recently with Heron field, 3 remained, and one is officially confirmed to be at the end of process. Whether it is transformational or not depend on if it it finalised, and what is everyone's definition of transformational. For MATD, the bar could be as low as "someone else is paying for our drilling season". I don't expect a 1000% rise in a year, but I don't see 100-300% as an unachievable dream only based on oil part of the business, assuming FO happens and drilling happens this season, and multiple producing wells are drilled. Our field has oil, prospects are identified near current producers (no wild cats), and it matches what PetroChina has done close to us. No massive reason why this would not be viable. About dilution - could you explain how FO is dulutive? Cash is exchanged for part of future production while number of shares remains the same. Farm out is a sale of part of production, not part of the whole company via share issue.

--Massive 'in ground' asset value v current mkt cap--

I agree it is not massive. If 30 bopd is commercial and 130 is above average, we are by no means in super lucrative position. However, if 2 wells can cover operational expenses of the company, cca 5 could finance sligh growth, and 20 could make MATD a significant producer of oil for Mongolia, the value in local context is good. Multiplied by 2 fields, the potential is there, and just in oil, not counting renewable energy. I agree current mcap fits the current situation, but I also think we can be one RNS from re-evaluation.

--Renewable arm attracting $ Multi-billions from the EU & Arab parties, inc Saudi Arabia--

Regarding noone caring about Mongolia - if this were true, then why would multiple banks and institutions at the same time work on big financing packages? Those are:

- EBRD - European Bank for Reconstruction and Development, invested over €2,5b so far, out of that €183m in just 2025, and EBRD director is clearly saying there is more to come, so it must be worth it for them.

https://www.ebrd.com/home/what-we-do/where-we-invest/mongolia.html

https://www.linkedin.com/posts/sule-kilic-32524441_mongolia-renewable-battery-activity-7443070013974159360-Ilid?utm_source=share&utm_medium=member_desktop&rcm=ACoAABB0Lp8BjYcF_IeVVjjxWWaoMBcQdECD0Z8

All projects can be found here by filtering on Mongolia + Energy (8 projects so far)

https://www.ebrd.com/home/what-we-do/projects.html#customtab-70eec7766a-item-4654c5d413-tab

2/2

- ADB - Asian Development Bank

Solar project outperforms expecations

https://www.greenclimate.fund/sites/default/files/document/fp046-final-evaluation-report-pub_0.pdf

- EIB - European Investment Bank

October 2025 Memorandum of Understanding (MoU) to unlock up to €1 billion (~$1.1 billion) for renewable energy, modern power networks, sustainable transport, and green transition projects.

https://www.eib.org/en/press/all/2025-387-eib-global-signs-memorandum-of-understanding-with-mongolia-to-unlock-up-to-eur1-billion-for-clean-energy-transition

- World Bank

Multiple ongoing and new commitments, including the $78 million Fourth Energy Sector Project (approved 2025, part of a broader ~$2.5 billion Multi-Phase Programmatic Approach for East Asia renewables integration). Focus on transmission lines/substations for renewable grid integration, plus broader support for governance

https://documents1.worldbank.org/curated/en/099091025184020288/pdf/P509161-be030ac3-9d58-4c8a-8d40-a692d074c350.pdf

"Very few RE projects have been realized despite abundant solar and wind potential, primarily because of the

absence of transmission lines to connect the RE resource areas with the demand centers."

Those power lines are now being built and expanded - just light through EBRD-financed projects, which sit around Choir, location where Sunsteppe plans to build.

ACWA power confirmed their intentions publicly multiple times

"With Saudi's ACWA Power there is a 10-gigawatt renewable energy project, then there is a possibility of a $5 billion green hydrogen project," Togmidyn Dorjkhand, said in an interview on the sidelines of the World Economic Forum in Davos. We're trying to move as quickly as possible... we expect to sign in the next few months," he added.

https://www.reuters.com/sustainability/climate-energy/mongolia-says-close-signing-major-green-energy-deals-with-saudi-arabia-2025-01-24/

https://x.com/Acwa_en/status/1972307692342448427

"Momentum is already visible. In 2025, the Government of Mongolia signed memoranda of understanding with international partners including the EBRD, ACWA Power, and UPC, covering renewable energy projects with an aggregate potential investment value in the multi-billion-dollar range. These agreements signal growing alignment between public-sector priorities and international capital providers."

https://capitalmarkets.mn/insight/127

The chairman states his intentions clearly - money is waiting for projects

https://www.youtube.com/watch?v=UpDbDFuN9Q4

--Early Dividend introduction strategy, facilitated by major Production / Revenue step up via the imminent Farm Out--

I agree about dividends, more like a carrot to me, but that has already been discussed

Https://www.linkedin.com/posts/sule-kilic-32524441_mongolia-renewable-battery-ugcPost-7443070010530467840-JF0n?utm_source=share&utm_medium=member_ios&rcm=ACoAABB0Lp8BjYcF_IeVVjjxWWaoMBcQdECD0Z8

More commentary

Https://energy.gov.mn/post/173600

Deputy Minister of Energy S. Dalkhaasuren received Shule Kilic, Director for Eurasian Energy at the European Bank for Reconstruction and Development, on March 24, 2026. During the meeting, the two sides exchanged views on projects currently being implemented jointly, as well as on projects planned for future cooperation.

Within the framework of the General Financing Agreement concluded between the Government of Mongolia and the European Bank for Reconstruction and Development, projects currently being implemented include the Choir–Sainshand 230 km transmission line and substation project, as well as the Ulaanbaatar district heating supply project. In addition, preparations are underway to implement the Sainshand–Tsagaansuvarga 220 kV transmission line and substation project, and projects to expand the 220 kV transmission line and substations on the Ulaanbaatar (Songino) – Darkhan corridor.

The parties also exchanged views on the possibility of implementing, in the Central region, a large-capacity solar power plant project with battery energy storage, designed to operate during peak load periods of the integrated grid, through a competitive international tender in line with international best practices.

Let's not forget we are dealing with Isle of Man. It may just be a solvency test that is needed to approve a cash distribution. In the UK it may not be possible, but Isle of Man has different rules.

Under the 2006 Companies Act from IoM, which does not require past profits for dividends. Directors can approve a cash distribution (dividend or other payout) at any time as long as the company will remain solvent after the payment. In short, no accumulated profit is needed – the key legal test is solvency, not retained earnings.

Under Isle of Man law, cash received from a farm-out agreement can legally be paid out to shareholders if the solvency test is satisfied. The 2006 Act eliminates the concept of “non-distributable” reserves, so any incoming funds (whether from operations or asset deals like farm-outs) are available for distribution provided the company’s assets will still exceed liabilities and debts can be paid in the normal course after the payout. In other words, a farm-out cash injection could become distributable to shareholders under the IoM framework.

https://www.isleofman-companies.com/isle-of-man-companies-act-2006/s50-distributions-subject-to-solvency-test/

I don't know if jurisdiction matters here, but Asiamet (ARS) is selling their project and plans to distribute part of the cash to shareholders. They are not calling it a dividend as such, but seems like the same thing. From RNS 6/11/25:

"The Board currently expects that the net proceeds received from the sale shall be substantially utilised to effect a cash distribution to Shareholders following Completion."

So it may be possible... But I am am not so sure it is the best thing for us. I would rather see the cash retained and used to build up the company. Seems like a better return longer-term to me.

Re @Krok

I don't want to agree or disagree, I am only supplying figures so we can share our own estimates of what the JV could look like, especially if you disagree with Krok on figures.

From Envoi we know:

Dry hole = ~$2m

Producer = ~$4m

Cost of 250 km^2 3D seismic = ~$5m

Based on price of $65 per barrel:

NPV10 of Heron-1 is ~$70m

NPV10 of Gazelle and Heron updip upside is ~$90m

Minimum commercial flow = 30 bopd

Average flow in Mongolia = ? (100?) There were some comments from Mike saying our current wells are somewhat above average, right?

Maximum flow if assistend using the pump is around 300 bopd (info is from the recent call, feel free to correct)

10% increase in the price of oil can increase NPV by 40%

Drilling success rate - 33%? 1 in 3 wells? Better for Heron as it is already proven?

In 2020 Petro Matad was seeking a partner for an initial drilling and seismic costing up to $20m.

If all of this is somewhat correct, then using the conservative numbers:

To have 5 new producers, we need to drill 15 wells. Not accounting for future water injectors.

The cost of this is (5x4) + (10x2) + 5m seismic = $45m

Out of the new production we would retain 60-70% let's say.

So for $45m we would estimate we get 5 new producing wells at 100 bopd each = 500 bopd, out of which attributable to MATD would be 300-400 bopd, while also getting the best understanding of the geology so far, and a much better measure of the overall value of the field.

There are 2 farm-ins of this kind pending, one for Heron field, one for Borzon (where we have way less info as it is nearly unexplored).

From a risk point of view of the farm-in entity, I would want to have the option to invest more, once the initial run shows its success rate.

We know much larger production >10,000 bopd is possible, as our neighbours are doing just that. The question is what will be the risk appetite of the farm-in partner(s) and how much they want to show in cash at once. I do see this as something increasing the value of the core asset and reflection of the future benefits in the share price, while not having overly optimistic expectations around production figures and % success rate.

Any feedback welcome.

Real quote on HL is for 1.063 to sell and 1.189 to buy, so real spread is almost half the amount shown here on LSE. Still not small, but not as massive.

@Hamm

Unfortunately nothing interesting from me on that front yet.

When it comes to views and likelihoods, my internal track record is 100% wrong, so I will prefer not to add to it even though I can't make it worse, hah.

Best I can do is a teaser of spring activity.

https://x.com/DanMavr/status/2036750034683797829?s=20

Thanks @SenatorPrime

Looking for more info now on your post:

The UK explicitly backs Mongolia’s Nationally Determined Contributions (NDCs), renewables expansion, and net-zero goals. UK “advocacy and footprint in renewable energy in Mongolia supports a diversified energy portfolio and reducing reliance on Russia.” Material support includes UK Export Finance (UKEF) financing of renewable projects where possible. The UK also contributes to multilateral efforts, such as the Green Climate Fund (which has approved US$460.6 million across 11 projects involving Mongolia for climate mitigation/adaptation) and the NAMA Facility (for energy-efficiency retrofits in Ulaanbaatar apartment blocks)

https://www.gov.uk/government/publications/uk-mongolia-development-partnership-summary/uk-mongolia-development-partnership-summary-march-2024

Specific projects listed so far are only about animal protection.

Solar power is a success story in Mongolia, based on the project completion summary from August 2025, focusing on the utility-scale solar project in Choir.

The result of the project is overachievement in all key metrics. Only helps our case, as finance is being proven to be put to a good use.

Green climate fund acts as a funding source that the Asian Development Bank can draw upon for climate projects.

www.greenclimate.fund/project/fp046

Location is here on page 38, right next to the substation which was upgraded (see my previous post today).

https://www.greenclimate.fund/sites/default/files/document/fp046-final-evaluation-report-pub_0.pdf

KEY PROJECT INFORMATION AND LESSONS LEARNED

Mongolia's first utility-scale solar project achieved landmark success as a 10MW facility in Sumber soum,

financed with USD 17.6 million including GCF concessional funding through local commercial banking.

Despite COVID-19 pandemic challenges that reduced national electricity demand and caused delayed

disbursements, the project exceeded all performance targets by generating 34,124 MWh of clean

electricity—10.8% above projections—while achieving 29,722 tCO2eq in emissions reductions, 21.1% higher

than expected. The facility now powers 20,000 Mongolian households annually.

Key lessons emphasize concessional financing's critical importance for renewable energy development, as

high costs remain major barriers for local developers. The project demonstrated strong social impact with

47% female employment (vs. 18% sector average) and 55.5% local hiring from Choir area, proving

renewable energy's capacity for rural economic development and community engagement in Mongolia.

SUMMARY: PERFORMANCE AGAINST GCF INVESTMENT CRITERIA

Impact Potential: Generated 34,124 MWh (10.8% above target) and achieved 29,722 tCO2eq emissions

reductions (21.1% higher than projected), powering over 20,000 households with 47% female employment.

Paradigm Shift Potential: Became Mongolia's first utility-scale renewable energy project financed

domestically with GCF support, proving local technical capacity and transferring knowledge to XacBank

while reducing transaction costs through AE fee coverage.

Sustainable Development Potential: Delivered significant environmental benefits including 160,000 tons

annual water savings, 277 construction jobs, and strong community engagement including COVID-19

response donations.

Needs of the Recipient: Successfully addressed Mongolia's energy security needs, though pandemic

highlighted requirements for additional concessional financing during demand shocks, leading to early

refinancing.

Country Ownership: Contributed 3.3% toward Mongolia's 20% renewable energy target with strong policy

alignment and stakeholder engagement throughout implementation.

EBRD have started progressing financing for an energy project in Mongolia. This is not related to the upcoming EIB finance. EBRD have already financed quite a few projects there in multiple areas.

https://www.ebrd.com/home/work-with-us/projects/psd/55916.html

"The provision of a sovereign loan of up to $30 million for the construction of the 214 km Sainshand Tsagaan Suvarga 220 kV transmission line and the extension of the existing 220/22 kV Tsagaan suvarga substation (the "Project"). The Project would enable access to reliable, affordable and cleaner electricity in the southern region of the country and strengthen the transmission network."

A related project from 2022 is here. You may notice it is in Choir, where one of the Sunsteppe project is planned (BESS). The overall goal is to significantly improve the reliability and resilience of power supply across the Gobi region.

https://www.ebrd.com/home/work-with-us/projects/psd/51505.html

Https://energy.gov.mn/post/173304

ZTT, the company Sunsteppe JV has partnered with to deliver the Choir Battery Energy Storage Storage System (BESS), has won and singed another project in Mongolia. From previous RNS:

"To strengthen SRE's competitive readiness, an MoU has been signed with ZTT International, one of the top Chinese EPC contractors and the one that built Mongolia's first utility-scale BESS financed by the Asian Development Bank. With SRE having the only approved feasibility study for Choir and ZTT having a proven track record of project delivery in Mongolia, the partnership is well placed to be highly competitive in this process."

Relevance to MATD is in seemingly securing the right partner - clearly being able to navigate Mongolia's processes and remain competitive. Let's hope they do the same for the Sunsteppe project.

Not yet (no intention yet from me), but I have emailed MATD now to ask about the purpose of this new entity, will keep you posted of course.

Https://services.gov.im/ded/services/companiesregistry/viewcompany.iom?Id=SN2faX4GGHTYNIh8VESGZg%3d%3d

Since Dec 25 we've had a new entity set up in Isle of Man, Petro Matad Resources Limited, company number 023052V. No search results anywhere yet for it except for the Isle of Man paperwork and I didn't find it in previous discussions so hopefully it is "new" for everyone. Are we awaiting any new PSCs or something like that, or did I miss anything?

Https://www.linkedin.com/posts/fredericlernoux_banking-finance-mongolia-activity-7439581261771239424-GzRU/

"The challenge now is upstream structuring. Not just raising capital—but ensuring the financial system is ready to deploy it strategically."

https://www.facebook.com/EuropeanInvestmentBank/posts/strengthening-eumongolia-cooperation-on-green-and-sustainable-investment-today-i/1366257925535365/

"For the European Investment Bank, this dialogue is about moving from ideas to implementation."

"EIB shared a Term Sheet outlining possible parameters for future cooperation to support Mongolia’s sustainable economic development and strengthen access to long-term green finance."

https://open.kg/en/news/in-the-world/82539-sotrudnichestvo-es-i-mongolii-v-oblasti-zelenyh-i-ustojchivyh-investicij-ukrepljaetsja.html

"The parties discussed further development of cooperation between Mongolia and the European Union, as well as with Belgium in areas such as trade, investment, renewable energy, rare earth elements, tourism, and digital infrastructure.

During the meetings, opportunities for joint work with European partners to strengthen Mongolia's energy security were also considered, including the implementation of modern technologies such as battery-based energy storage systems."

Https://x.com/DanMavr/status/2034907102590718223?s=20

First term sheet received between banks.