Edison Investment Research - EMED Mining (EMED) Update: Commercial production by January 2016

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Edison Investment Research

Update: Commercial production by January 2016

The Riotinto copper project achieved first concentrate production on 31 July and following a commissioning phase is expected to start commercial production in January 2016. EMED is on track to complete Phase 1 expansion to 7.5Mtpa by mid-2016 and contemplates a further upgrade to a 9.5Mtpa throughput by the end of 2016. Having updated our copper price assumptions, we revise our valuation of the company to US$326m, or 6.0p/share, using a 10% discount rate. Based on our estimates, the stock trades at an undemanding 2016e EV/EBITDA of c 4.0x.

16/09/2015 6 EN

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EMED Mining

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Cyprus

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Other Reports on these Companies

Edison Investment Research

Update: Equity offering to fully fund the Rio Tinto project

EMED has completed an equity offering to fully fund the development of the Rio Tinto copper project to 7.5Mtpa and pay down debt. Following the placement, four strategic investors control 72.5% of the company. With Phase I construction 80% complete, first production is expected in H215, 5.0Mtpa capacity in Q116 and 7.5Mtpa run-rate by mid-2016. We update our valuation of the company to US$353m, or 6.5p/share on a funded basis, using a conservative long-term copper price assumption of US$2.75/lb. On our estimates, EMED trades at an attractive 2016e EV/EBITDA of 3.1x.

July 14, 2015 July 14, 2015 10 EN

Edison Investment Research

Update: Production in late 2015-early 2016

Following successful completion of the permitting process at the Rio Tinto project, EMEDâ€™s focus now shifts to securing a funding package. While we have little doubt that the company will be able to raise the required funds, we note considerable progress on refurbishing the project using available equity and debt financing. We value the Rio Tinto copper project at US$262m on an NPV10 using a copper price of US$2.75/lb. Trading on a fully-funded steady-state EV/EBITDA of 3.5x, the stock looks attractive.

March 11, 2015 March 11, 2015 10 EN

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Update: Commercial production by January 2016

Update: Equity offering to fully fund the Rio Tinto project

Update: Production in late 2015-early 2016

Basilea Pharmaceutica - Cresemba milestone payments continue to roll in

AAC Clyde Space - Solid start to the year with further order growth

Tinexta - Typical seasonality in Q124

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