News & Analysis

EMED Mining Public Ltd (EMED: AIM) review and analysis

By PSQ Analytics

EMED Mining Public Ltd (“EMED”) along with its subsidiaries (together called “the Group”) is engaged in exploration and development of natural resources, with a focus on copper and gold. With its corporate headquarter in Cyprus and operations base in Spain, EMED operates in Europe and Middle East regions. The company was listed on AIM in May 2005. It changed its name from Eastern Mediterranean Resources Public Ltd to EMED Mining Public Ltd in September 2006.

EMED’s current exploration projects are in Cyprus, Georgia, Spain and Slovakia. It is currently focused on two key projects Rio Tinto Mine in Spain and Biely Vrch Prospect in Slovakia. EMED also holds a 25% stake in AIM-listed KEFI Minerals which explores for gold and copper in Turkey and Saudi Arabia.

Rio Tinto Mine Project: EMED has a 100% ownership of the Rio Tinto Mine in Spain. This is an established open-pit mine, with a copper-concentrator plant and other infrastructure, which offers an opportunity to bring a large copper mine into production at a relatively low acquisition and start-up costs. EMED has initiated the process with the regulatory authorities for securing permission to initiate production activities at the mine and expects that production commissioning will start in early 2011. EMED has verified its mineral resources and ore reserves in compliance with JORC. The Rio Tinto Mine has around 940,000 tonnes of contained copper in resources with around 585,000 tonnes of contained copper estimated in reserves.

Biely Vrch Project: EMED holds a number of 100%-owned licences at the Biely Vrch project in central Slovakia. The initial JORC Code-compliant mineral resource for the Biely Vrch porphyry gold deposit is estimated to be 41.7 million tonnes at 0.79g/t gold, containing 1.1 million ounces of gold. The Group continues to explore the surrounding porphyry gold district within its large 695 sq km licence areas in Slovakia.

Copper exploration in Cyprus: EMED’s 95%-owned project owns the largest portfolio of exploration licences (for copper and zinc) in Cyprus. The JORC compliant estimates put the project’s Inferred resources at 4.5 million tonnes (mt) at 0.41% copper and 0.74% zinc in Klirou, and at 2.1 mt at 0.95% zinc in South Mathiatis. EMED plans to restart its exploration activities in Cyprus once the Rio Tinto Mine gets operational.

Gold exploration in Georgia: EMED’s 100%-owned project in Georgia has large Russian gold resources. However, the Group halted the exploration activities at the project due to its other priorities and un-viable political situation in Georgia recently.

Key recent news

16 February 2010: Announced that regulatory authorities had completed the preliminary reviews for the proposed start of production at Rio Tinto Mine. The Group also received clearance from regulatory authorities to submit the full set of detailed reports and applications for permission to start-up production.

4 December 2009: Raised GBP3.27 mn through issuance of 27,727,273 new ordinary shares at an issue price of 11 p per share to its existing and new shareholders. The amount raised will be used to fund the permitting process in relation to its Rio Tinto project in Spain. A portion of the funds raised would also be used to finance mine development and exploration activities, which EMED is carrying out in Slovakia, and for general working capital requirements.