EMED Mining

www.emed-mining.com TICKER: EMED     EXCHANGE: L

EMED Mining is focused on the exploration and production of copper, gold and tungsten, in Europe and the Middle East. EMED makes use of previous mining locations to utilize under-explored resources, as well as developing new start-up ventures. The company is currently focused on two major projects in Spain and Slovakia; the Rio Tinto Copper Mine and the DETVA Gold Project respectively. EMED Mining is also a 19% shareholder in KEFI Minerals plc - a gold exploration company concentrated upon Turkey and Saudi Arabia.

LATEST REPORTS

 
Green light for Rio Tinto
Published: Apr 23 2014

EMED Mining owns 100% of the historic Rio Tinto Copper Project in Spain, and plans to begin restart operations of the first mine there later in the current year. The two vital regulatory pieces in the jigsaw have been put in place, with the grant of both Administrative Standing and Environmental Approval.
We expect first copper to be produced in Q4 2015 or Q1 2016, with ramp-up to production of 9m tonnes of ore pa within twelve months after that. Our assumed Target Plan would take the mine to 15m tonnes pa.
EMED has also recently made two key management appointments: Isaac Querub as CEO and Alberto Lavandeira as COO. Both are Spanish nationals, and are highly qualified to take EMED forward in the implementation of its strategy.
We have previously published two separate estimates of fair value for EMED, short term and medium term. Now we merge these into a more concrete single estimate, setting it at 21p per share, which does not take into account development of other assets within the Rio Tinto footprint.
 
Rio Tinto restart on track
Published: Sep 16 2013

EMED has today reiterated its confidence that the two key permissions of Administration Standing ('AS') and the Environmental Plan ('AAU') will be issued around the end of the year, triggering construction works then and restart of copper production from early 2015.
In what should be the final stages of the long drawn out process, the TMF plans have (14 September) been opened for public comment for a period of 30 days. After this, the draft AAU approval will be published and will be open to comments for a period of 15 days by parties with registered interest.
AS and AAU should be issued around the end of 2013, enabling development of a major mine within the world's largest VMS system, with initial JORC reserves of 1.1bn lbs Cu-in-concentrate, and resources of 1.4bn lbs. 
We maintain short term fair value at 17p per share, and longer term at 27p.
 
Waiting for Godot
Published: Jun 19 2013

EMED Mining's principal activity is the acquisition or discovery and then production of metals, with a focus on copper and gold. Its region of interest spans Europe and the Middle East. The company owns 100% of the historic Rio Tinto Copper Project in Spain.
Although bureaucratic frustrations continue and there is as yet no grant of Administrative Standing ('AS') for the Rio Tinto project, there are distinct positives to be gained from last week's news.
Any risk of short term cash flow problems are averted by the long-signalled offtake-linked financing which is an agreement to issue $15m  convertible loans to XGC and Red Kite.The agreed conversion price of 9p per share compares with a market price of 5.5p just before the announcement.
That Rio Tinto remains a viable and attractive operation is a reflection of the robust nature of the project. Not including the impact of further delays in our estimates of earnings still gives a medium term Fair Value per share of 27p, versus 6p currently.
 
Not just copper
Published: Apr 24 2013

EMED Mining's principal activity is the acquisition or discovery and then production of metals, with a focus on copper and gold. Its region of interest spans Europe and the Middle East. The company owns 100% of the historic Rio Tinto Copper Project in Spain, and plans to trigger the restart of the first mine there in 2013.
The long permitting process in Spain appears to be coming to a close and in this report we look at the longer term for the Rio Tinto site. 
Potential there includes:likely extension of reserves beyond Base Case, expansion of reserves, and possible exploitation of gold, silver and other metals in identified zones.
The recent sharp drop in the gold price has affected other metal prices. We have reduced our estimates but still put a short term value on EMED of 20p per share, and a medium term one of 32p, both well in excess of the present 9p share price.
 
Finance and Beyond
Published: Nov 23 2012

EMED Mining's principal activity is the acquisition or discovery and production of metals, with a focus on copper and gold. The company owns 100% of the historic Rio Tinto Copper Project in Spain, and plans to restart the first mine there in 2013.
Earlier this month it was announced that the Company and two of its subsidiaries had entered into conditional agreements  with a cornerstone customer,Red Kite, for an aggregate funding package of US$50 million. 
EMED has separately announced this week that the competent District Mining Bureau of Banska Bystrica, in Central Slovakia, has approved the Mining Lease Area over the mineral rights to the Biely Vrch Gold Deposit in Slovakia. 
We have updated our fair value estimate to 47p per share, based on our previously described upgrade case.
 
Jigsaw puzzle complete
Published: Aug 03 2012

EMED Mining's principal activity is the acquisition or discovery and then production of metals, with a focus on copper and gold. The company owns 100% of the historic Rio Tinto copper mine and plant in Spain, and plans to restart production there in 2013.
Today EMED has announced the purchase of land surrounding part of the tailings wall at the copper mine, which completes the land requirements both for the base case plan of operations and for expansion of mine life and annual output. EMED has also negotiated options to buy further plots of land for longer term expansion beyond Cerro Colorado.
We reiterate our medium term fair value of 32p per share, and longer term fair value of 49p per share.
 
A breakthrough deal
Published: Jul 09 2012

EMED Mining's principal activity is the acquisition or discovery and then production of metals, with a focus on copper and gold. Its region of interest spans Europe and the Middle East. The company owns 100percent of the historic Rio Tinto copper mine and plant in Spain, and plans to restart production there in 2013.

Today's announcement of a Sale and Purchase Agreement with Rumbo 5-Cero, S.L. removes one of the few remaining obstacles to the realisation of the Projecto Rio Tinto.

The Company  has also announced that major shareholder and cornerstone customer Yanggu Xiangguang Copper Co. Ltd has conditionally agreed to subscribe for 32.25 million new ordinary shares at a price of 10 pence per share for aggregate proceeds of USD5 million. 

On our estimates, EMED is trading on prospective earnings multiples in low single figures. Our longer term fair value price target is 49p per share.

ARCHIVE

2012
Funding and offtake point the way
Published: Mar 06 2012

EMED Mining's principal activity is the acquisition or discovery and then production of metals, with a focus on copper and gold. Its region of interest spans Europe and the Middle East. The company owns 100% of the historic Rio Tinto copper mine and plant in Spain, and plans to restart production there in 2013
EMED has put in place the first stage of funding for restart of Projecto Rio Tinto and, in the process, has acquired a significant new shareholder and 'cornerstone customer' in the form of Yanggu Xiangguang Copper Co. Ltd
The deal with XGC will bring in equity funds of $15m and a facility of a further $15m, with XGC acquiring offtake rights over 25% of currently stated reserves at market prices. This is part of the total project finance package, just now mandated to Goldman Sachs via a US$175m loan with a copper presale agreement for delivery over a seven year period
On our estimates, EMED is trading on prospective earnings multiples in low single figures. The share price has responded positively to the XGC and GSI announcements, but at 14p is still well below our medium and longer term fair values (35p and 53p respectively). 
2011
Iberian deal underpins value
Published: Nov 24 2011

EMED Mining's principal activity is the acquisition or discovery and then production of metals, with a focus on copper and gold. Its region of interest spans Europe and the Middle East. 
Corporate transactions concentrate the mind on value, particularly when they are in companies similar to or geographically close to a company being studied.The recent Trafigura offer for the equity in Iberian Minerals not already owned is one such case in point.
This suggests a lowest value for EMED of 23.4p per share on our base case, rising to 38.0p on our upgrade case: both are a multiple of the present share price of 7.4p.
These numbers do not take into account the value of the Biely Vrch gold asset in Slovakia, which we believe is worth the present share price on its own.We have left our fair value estimates as they are (55p / share in the long term), but will return to them in the New Year
Just about there...
Published: Sep 08 2011

EMED Mining's principal activity is the acquisition or discovery and then production of metals, with a focus on copper, gold and, more recently, tungsten

The lengthy permitting process for the Rio Tinto mine is near its end as the company has now submitted documents as requested by the Junta and Departments of Industry and Environment

EMED expects commissioning to start by end 2012, with ramp-up to 9m tonnes pa by mid 2013

We confirm our target prices of 41p (medium term) and 55p (longer term) against the current share price of 9.1p

Major approval and election impact
Published: May 24 2011

EMED has received approval from the Department of Culture and Heritage of the Junta de Andalucia (the regional government) for its plans to restart the Rio Tinto mine. This is the first such approval expected to follow from the announcement by the Junta in March that it recognises EMED‟s legal claim to the project‟s mineral rights. We expect remaining approvals to continue to be expedited and EMED to hit its target for first production in 2012.

Beyond the prospectus
Published: Apr 04 2011

EMED Mining's principal activity is the acquisition or discovery and then production of metals, with a focus on copper, gold and, more recently, tungsten. Its region of interest spans Europe and the Middle East. The company owns 100% of the historic Rio Tinto copper mine and plant in Spain, and plans to restart production there in 2012.

Copper has now traded at more than $4.00/lb for about four months. EMED is a prime near term production play on the Cu price. Our estimates are influenced by the assumption that EMED will lock in current high Cu prices by forward selling of a proportion of production.

Our medium term target price of 41p is founded on a base case of 9m tonnes pa of ore treated, while our longer term target of 55p assumes a move to 15m tonnes pa (both within the current resource pit). We do not factor in the substantial expansion of reserves and resources to be expected from drilling in known mineralised areas outside the current resource pit at Cerro Colorado, or in historic underground mines on the Rio Tinto property. Currently the shares trade at 16p.

2010
Planned issue; TSX prospectus
Published: Nov 05 2010

Mining focus on copper and gold, in Europe and Middle East

Dual listing in Canada should raise awareness; up to Can$ 35m being sought

Value underpinned by strong copper price

Revised share targets: 36p medium term, 48p long term - versus current 9p
Re-rating due
Published: Jun 17 2010

Focused on copper and gold, in Europe and the Middle East

Shortly to be listed on TSX as well as AIM, highlighting value disparity

On track for restart of Rio Tinto mine in 2011; benefitting from costs and $ sales

Medium target per share 40p and longer term 56p - versus current 8p level
Looking forward
Published: Mar 01 2010

Re-evaluation of potential pushes longer term value to 54p / share

High probability that the Rio Tinto permitting process will complete successfully

Drilling can establish further resources; copper price holding up; US$ appreciation vs. is a positive

Winning through
Published: Jan 22 2010

Permitting well on track for Rio Tinto mine restart

Metal prices remaining positive

Fair value rises to 37p share (versus current 13p)

2009
Enhanced visibility
Published: Nov 30 2009

Progress in permitting for Rio Tinto mine: geotechnical drilling; mandates for rehabilitation, systems and plans

Copper trading favourably at $3/lb; gold hits new levels at $1183/oz

Fair value per share maintained at 35p versus current 11.5p level

Bouncing Back
Published: Nov 02 2009

Recovery in metals prices underlines value:

    Copper in the Rio Tinto Mine project,
    Scoping studies for Gold in Slovakia

Fair value seen at 35p / share vs. current 11p

Back on track?
Published: May 11 2009

Close to triggering restart of Rio Tinto mine (940,000 tonnes of copper - resource base)

Evaluating release of value in Slovakian gold discovery

Strong 2009 recovery in copper price not yet reflected in share price

Down but not out
Published: Feb 04 2009

When we last published on EMED the price of copper was $2.7/lb. Since then the price has collapsed in spectacular fashion, reaching a closing low of $1.255/lb on 24th December 2008 before beginning to stabilise. The current price is about $1.4/lb.

The EMED share price has reflected this fall, down from 17.25p to the present 4.5p. Clearly, the market is signalling doubts about the activation of the Rio Tinto copper project ('Rio Tinto'). Previous fair value calculations published by us  appear to be of academic interest at the moment.

However, the 2008 Q4 report just released by the company serves to counter the generally prevailing mood of pessimism. In an exercise of battening down the hatches, EMED has cut outgoings by more than 50%, renegotiated the terms for the acquisition of the Rio Tinto mine , and has outlined plans for a further capital injection . Staffing has been cut by more than 60%, and senior management personnel have embraced substantial salary cuts.
2008
100 percent ownership of Rio Tinto copper project in Spain
Published: Oct 06 2008

Cash outlay of £90m secures assets worth £500m at replacement cost

Dilution-affected fair value reduced from 70p to 65p

Fair value still more than double share price with copper at $2.2/lb
Value becoming clear
Published: May 14 2008

Close to acquiring Rio Tinto mine at attractive valuation

Recently raised £10m via equity

Fair value seen at 70p / share, but trading at 24p