EPIC : EMED

Web Site : http://www.emed-mining.com

6th June 2007 Broker Note : Link Click Here (PDF file)

5th June 2007 Hardman update : Link Click Here (PDF file)


The principal activity of EMED Mining is to explore for and develop natural resources, with a focus on copper and gold. The Company's region of interest spans from Europe to Iran which includes many past centres of mining and under-explored potential for many styles of mineralisation such as volcanogenic-hosted massive sulphide copper-gold, epithermal gold and porphyry copper-gold .

The Company has been listed on AIM (Code:EMED) since May 2005. Shareholders approved changing the Company's name from Eastern Mediterranean Resources Public Limited to EMED Mining Public Limited in September 2006.

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GECR also did a write up a few weeks back which went out on a free email shot, a more ambitious target price than the broker (broker saying 32p target for now).


From GECR:-

EMED Mining Option over Spanish Project : target price increased from 27.75p to 79.4p - Buy at 13p


Key Data

EPIC EMED

Total no of shares 126 million

Market AIM

Website www.emed-mining.com

EMED Mining has today announced the acquisition of an option over a copper mine in Southern Spain which is expected to accelerate its transformation from an explorer to a producer. The mine is fully developed and operated for many years but is currently dormant. So this deal will, by resurrecting the mine, bring much needed jobs to the area and hence should have strong local and regulatory backing . Other recently permitted mines in this world-class Iberian Pyrite Belt include the nearby Inmets Las Cruces and Lundins Las Blancas mine and its Neves Corvo mine in Portugal.

From the investors perspective, this is a mine which could plausibly generate 33 million in free cashflow annually from mid 2008 onwards and hence it creates real value for EMED on a heavily risked basis we believe that this acquisition increases our valuation of the group from 25.5 million to 100.5 million. The Spanish deal is being partially funded by the issue of equity but even on the enlarged share capital our estimate of fair value rises from 27.75p to 79.4p and we reiterate our buy stance.

The deal announced today is that EMED has secured an exclusive option to acquire 100% of Proyecto de Rio Tinto (PRT) copper mine and processing plant in Spain. The price of that option is to fund care and maintenance on this dormant operation which will cost 1-2 million pounds. The PRT mine has the potential to complement and add value to EMEDs exploration asset growing portfolio and generate early cash flow as early as the second quarter of next year.

The exercise price of the option to acquire 100% of the PRT copper mine and processing plant site is capped at 75 million euro (approx. 50 million pounds) and covers the costs of restart and clean-out of the creditors of the vendors debts and obligations. The project, originally built and operated by Rio Tinto (RTZ) within the Iberian pyrite belt, is adjacent to the town of Rio Tinto, 65 kilometres northwest of Sevilla, in the Andalucian region in Spain. The PRT mine, currently operating on care and maintenance since 2000 due to then-prevailing low copper prices (below $US1/lb), comprises a complete set of mine and plant infrastructure, mineral rights within the main tenements and exploration assets. The plant was expanded in 1996 and had a peak throughput rate of 9Mtpa in 1998, with head grade 0.49-0.61% Cu and concentrate recovery of approximately 23% Cu.

It contains in-situ JORC-compliant Resources and Reserves copper exceeding 1 million tonnes (1.2Mt) and 300,000 tonnes (342Kt) respectively, based on 209 million tonnes at 0.57% copper resource and 53 million tonnes at 0.65% copper reserve, independently verified by AMC consultants. The company expects to increase reserves during 2007 by completing pit-design and optimisation studies.

The companys objective is to trigger its option to acquire 51% of PRT in the fourth quarter of 2007. That, and the costs of restarting the mine will cost EMED 18 million but the option will only be exercised after EMED is satisfied that its stipulated conditions precedent have been satisfied. The option to acquire the remaining 49% can be exercised in tranches of no less than 10% per annum, during the next four years at a cost of 35 million. In addition, the company expects to invest further capital in environmental improvements in this site which was mined for over a century and in expanding production and in restoring and rehabilitating the site.

The conditions precedent, include receipt of all regulatory approvals and the satisfaction of the company that all the vendors liabilities and contractual commitments to third parties have been settled . The various obligations are related to the ongoing care and maintenance funding over the past 6 years and from bankruptcy and litigation of related parties. Regulatory approvals from the regional Government of Andalucia, are linked to EMEDs consideration for undertaking responsibility for site restoration and rehabilitation, funding care and maintenance, and other social, environmental, technical and financial solutions. The completion of technical due diligence for planning the restart of the mine, processing plant as well as a fast track site restoration and on-going long term production plan, are part of the conditions precedent. The regional Government of Andalucia is very supportive of development and can be expected to support this transaction as long as EMED can clean up the baggage of the past bankruptcies. In this regard it is notable that the EMED Board includes not only a Managing Director with strong commercial experience but a Chairman who was previously head of investment banking at Rothschild.

After due diligence and other legal/technical advice from independent consultants AMC Consultants, Golders International, and legal advisers Baker McKenzie, Madrid, the company considers its feasible to restart production in the second quarter of 2008 at the initial rate of 27,000 tonnes per annum copper-in-concentrate. That would generate annual revenues in the order of 71 million pounds at copper price of $2.50/lb or 51million pounds at copper prices of $1.80/lb (current spot price of US$3.70 /lb). Plans to expand production over time to 40,000 tonnes copper in-concentrate throughout the site are also in the companys sights. Current operating costs are estimated to be $1.32/lb, or approximately 39 million pounds per annum at the initial production rate. At the initial production rate at a copper price of $1.80/ lb the free cashflow generated would be 13 million per annum. At $2.50/lb EBITDA would rise sharply to 33 million per annum. Of course, initially EMED would have the rights to only 51% of those cashflows but with such strong cashflows to borrow against it could easily gear up to buy out the minority shareholders at an accelerated rate.

EMED believes that the 18 million needed to exercise its option to buy 51% of the equity and to restart the mine and the 24 million it needs to expand output can be funded via a combination of project finance, pre-sales to customers and project cashflow.

To fund the option and to accelerate its exploration elsewhere in Southern Europe, EMED Mining has expanded its shareholder base through a 4 million placing, with the introduction of major mining company Gold Fields, project financiers Resource Capital Funds and Rand Merchant Bank, to its shareholder base. The 33.3 million new ordinary shares placing at an issue price of 12p, will raise 3.8 million net which will finance the initial due diligence and permitting phase at PRT (2.5 million) with the balance funding exploration expansion and advancement of projects in Slovakia and Cyprus.

Australias Oxiana has maintained its holding in EMED at 12% by supporting the placing but as a result of this offering of equity, Gold Fields now has a 10% stake, the management has 15% (27% fully-diluted) with financial institutions in Australia, UK and the USA holding 28%.

EMED has also announced that it intends to expand its current project operations, particularly at its recent gold discovery at Biely Vrch in Slovakia, where the company has applied for additional exploration license acreage. The company is currently drilling over 500 metres at Biely Vrch, with the best of only 5 drill holes to date assaying 1.2 g/t gold. Of significance, Gold Fields has being granted the first right of refusal if EMED Mining decides to joint venture its Slovakian interest within the next two years.

The progress made in Slovakia indicates that our existing valuation of EMED at 25.5 million was cautious. However it is the news from Spain which transforms the outlook for the company. Our valuation of PRT is based on copper prices of $2.50/lb which is well below the current price of $3.70/lb and our model is risk weighted to account for political uncertainties which may derail EMEDs plans as well as risks inherent in project financing such a large scheme. None the less we still value the PRT deal at 75 million and hence we are increasing our group valuation to 100.5 million or from 27.75p per share to 79.4p per share. The stance remains buy.

New GECR update out on all the companies on their free email ( via www.uk-analyst.com )

12th June 2007

EMED Mining has secured an exclusive option to acquire 100% of Proyecto de Rio Tinto (PRT), a copper mine and processing plant in Southern Spain, which is currently dormant. The option will cost the company between 1-2 million pounds for funding the care and maintenance of the dormant operation. The option gives EMED Mining the opportunity to examine and potentially acquire the PRT copper project in Andaluc, which is within a world-class Iberian Pyrite belt.
The mine could potentially generate 33 million pounds annual free cashflow as early as mid 2008 and create added value and serve as a perfect fit to EMEDs growing exploration and near term production asset portfolio. As a result we believe that this acquisition adds significant value to our group valuation, and as a result on a heavily risk weighted basis, our sum of the parts valuation is revised upwards from 25.5 million pounds to 100.5 million pounds. Our estimate of fair value rises from 27.75p to 79.4p based on the enlarged share capital, following the issue of 33.33 million shares, which will partially fund the PRT project.

The company can trigger its option to acquire 51% of PRT in the fourth quarter of 2007, after it has examined the mine and completed technical due diligence on the economic viability of the project. The purchase of the 51% and the costs of restarting the mine will cost EMED 18 million pounds, subject to stipulated conditions precedent being satisfied. The option to acquire the remaining 49% can be exercised in a tranche-structure of no less than 10% per annum, during the subsequent four years at a cost of 35 million pounds. The company expects to invest further capital in expanding production and in restoring and rehabilitating the site and estimates that it would cost around 24 million pounds to restart and expand the mine, with that cost met from a combination of project finance, pre-sales to customers and project cashflow

The PRT mine, originally built and operated by Rio Tinto, closed in 2000 due to then- low prevailing copper prices (below $US1/lb) and had a peak throughput rate of 9Mtpa in 1998, with head grade 0.49-0.61% Cu and concentrate recovery of approximately 23% Cu. The mine contains in-situ JORC-compliant Resources and Reserves copper exceeding 1 million tonnes (1.2Mt) and 300,000 tonnes (342Kt) respectively, based on 209 million tonnes at 0.57% copper resource and 53 million tonnes at 0.65% copper reserve, independently verified by AMC consultants.

The restoration of the mine is welcomed by the local Andalucian authorities, as it is going to create jobs for locals and improve the economic conditions of the area. Regulatory approvals will be forthcoming from the regional Government of Andalucia, subject to EMED undertaking a responsible approach towards site restoration and rehabilitation, whilst it invests in social and environmental initiatives. The company is expected to pick up the baggage of past bankruptcies and cover the costs of re-start and clean out of the vendors debts and other obligations. On the other hand, EMED Mining expects to proceed with the proposed acquisition only if the company is satisfied that it can operate the mine with a clean bill of health, having received confirmation that all vendors liabilities and contractual commitments have been settled.

It is feasible to restart production of the mine in Q2 of 2008 at initial rate of 27,000 tpa copper-in-concentrate, which would generate approximately 71 million pounds pa at copper price of $2.50/lb or 51million pounds pa at copper prices of $1.80/lb (current spot price of US$3+/lb). The company has plans to expand production over time to 40,000 t/pa copper in-concentrate throughout the site. Current operating costs are estimated to be $1.32/lb, or approximately 39 million pounds per annum at the initial production rate. At the initial production rate at a copper price of $1.80/1lb the free cashflow generated would be 13 million per annum. At $2.50/lb EBITDA would rise sharply to 33 million per annum. It is expected that with such a strong cashflow, EMED will opt to scale up its stake at an accelerated rate.

To fund the option and to accelerate is exploration elsewhere in Southern Europe, EMED Mining has expanded its shareholder base through a 4 million pound placing, with the introduction of major mining company Gold Fields, project financiers Resource Capital Funds and Rand Merchant Bank, to its shareholder base. The 33.3 million new ordinary shares placing at an issue price of 12p, will raise 3.8 million pounds net which will finance the initial due diligence and permitting phase at PRT (2.5 million pounds) with the balance funding exploration expansion and advancement of projects in Slovakia and Cyprus.

EMED has also announced that it intends to expand its current Biely Vrch gold discovery in Slovakia, having applied for new exploration licences covering a combined area of 1312 square kilometres, compared to the current 490 square kilometres. The company is currently drilling over 500 metres at Biely Vrch, with the best of only 5 drill holes to date assaying 1.2 g/t gold. Gold Fields, now a 10% shareholder, has being granted the first right of refusal if EMED Mining decides to joint venture its Slovakian interest within the next two years.

Our valuation of PRT is based on copper prices of $2.50/lb which is well below the current price of $3/lb and our risk weighted model accounts for political uncertainties and project financing inherent risks. Nevertheless we still value the PRT deal at 75 million pounds and hence we are increasing our group valuation to 100.5 million pounds or from 27.75p per share to 79.4p per share. The stance remains buy.

looks like its got some new momentum from the update with some new buyers coming in ??

5th June Hardman Update

http://emed-mining.com/site/dmdocuments/EMED_Mining_Hardman_Research_5June07.pdf


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Bought some of these today. Like the figures and broker targets.

going to take something special to achive the brokers forecast of 80p+

The Slovakian gold project looks pretty special on it's own. Not looked in too much detail yet at their other mid/east-europe projects.
The Spanish coppermine is an awesome prospect, in more ways than one. It looks quite risky, but if they can pull it off the rewards will be immense. The key here I think will be the support from the other parties involved such ie Spanish authorities, industry partners and of course the financial institutions who are going to be putting up the cash. On these fronts, the relationships they have developed so far look encouraging.

EMED presenting tomorrow :

http://www.wallstreetreporter.com/sdc/


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Cheers Papal. The CEO's speech should be starting in half an hour.

An idea why the weakness in the price at the moment, the lack of buyers, and the largish sellers?

No idea.......

Article on Minesite today about Kefi minerals. Mentions EMED's Biely Vrch gold discovery, saying that it "still seems strangely unrecognised by the market."

Audio transcript of CEO's speech in NY yesterday (26 minutes) available here:

http://www.investorcalendar.com/IC/CEPage.asp?ID=118118&CID=

Very interesting and well worth a listen.

Looking a bit stronger all of a sudden.

This seems under the radar of a lot of investors? But for how much longer?

Nice to see a few ticks up into close on a Friday.

http://www.investegate.co.uk/Article.aspx?id=200707090701078623Z


EMED Mining Public Limited 09 July 2007

9 July 2007

PORPHYRY GOLD SYSTEM IDENTIFIED AT BIELY VRCH

EMED Mining Public Limited ('EMED Mining' or 'the Company') announces further
drilling results from the drilling program at the Biely Vrch Prospect at the
Company's Detva Licence in central Slovakia, as well as the recognition of the
deposit as a classical porphyry gold system.

Highlights

Drillhole DVE8 has extended known mineralisation to the west with an
intercept of 0.94g/t gold over 258m from surface, including 154m at 1.3g/t
gold from surface.

Drillhole DVE9 has extended known mineralisation to the north with an
intercept of 41m at 0.7g/t gold from 62m down hole.

Current drilling is aimed at extending mineralisation north and south,
as well as testing nearby prospects analogous to Biely Vrch.

Biely Vrch is a classical porphyry gold system which is a deposit type
rare globally and exemplified by several multi-million ounce deposits in the
Maricunga belt of northern Chile.

Porphyry gold deposits typically occur in clusters and are usually
large ( > 100 million tonnes), low-grade (0.7g/t to 1.8g/t gold),
bulk-mineable deposits.

Results to date have defined a zone of mineralisation estimated to
contain 15 to 23 million tonnes at an average grade of 1.0g/t gold, containing approximately 0.5 to 0.7 million ounces. Further work is required to define a JORC-compliant Mineral Resource.

Several other prospects within the Company's Slovakian Licence have
been recognised as having potential to host porphyry gold mineralisation.

Assay results have now been received for five (DVE5 to DVE9) of the six
drillholes completed at Biely Vrch during 2007. This program was designed to
follow-up the Company's first four drillholes at Biely Vrch which all
intercepted gold mineralisation over their entire length.

Drilling results have confirmed the presence of gold mineralisation underlying
the first target at Biely Vrch, a 300m by 500m soil geochemical anomaly. Gold
mineralisation is contained in a broadly pipe-shaped quartz-veinlet stockwork
zone associated with an andesitic porphyry intrusion.

Drillhole DVE8 extended known mineralisation (to 250m east-west in total) with
an intercept of 154m at 1.3g/t gold from surface. Drillhole DVE9 extended known
mineralisation (to 350m north-south in total) with an intercept of 41m at 0.7g/t gold from 62m down hole.

Commenting on the results, Managing Director Harry Anagnostaras-Adams said:

'Mineralisation at Biely Vrch continues to be extended and is open in several
directions. This drilling provides encouragement for the ultimate delineation of a significant Mineral Resource.

'The recognition of Biely Vrch as a porphyry gold system is exciting as this
style of deposit typically occurs in clusters. Our geologists are now applying
the porphyry gold model to our large Slovakian tenements and defining drill
targets on several prospects relatively quickly.

'Drilling continues at Biely Vrch and initial drilling of nearby prospects is
also planned.'

Broker update out :

http://www.minesite.com/fileadmin/content/pdfs/Brokers_Reports_5/EMEDMining9July2007.pdf

For those that have not seen it :

http://www.wallstreetreporter.com/view_videos.php?id=48


EMED Mining Public Limited KEFI Minerals Plc
AIM: EMED

Interview with:
Harry Anagnostaras-Adams Managing Director EMED

lot of buying today up 15%, is it in the papers as no news at present.