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.
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