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    <title>Edison Investment Research &#45; recent research</title>
    <link>http://www.edisoninvestmentresearch.co.uk</link>
    
    <dc:language>en</dc:language>
    <dc:rights>Copyright 2012</dc:rights>
    <dc:date>2012-02-08</dc:date>



    <item>
      <title>Wits Gold &#45; Cheap acquisition</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/wits-gold</link>
      <headline>Cheap acquisition</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Wits Gold: Since the arrival of CEO Philip Kotze on 1 August 2011, Wits Gold has redefined its strategies on exploration and project building to include acquisitions. The announcement on 30 January 2012 that it would acquire the operating Evander Gold Mine from Harmony for ZAR1.7bn (US$219m) in a 50:50 partnership with Pan African Resources is a case in point. In qualitative terms, it gives Wits Gold a 50% stake in an operating mine and forecast positive cash flow. In quantitative terms, it buys 1.3m measured, 22.7m indicated and 10.4m inferred ounces at a cost of US$6.37 per average ounce (at US$= ZAR7.75). This is 18% of, and an 82% discount to, the US$36.27/oz value of average Witwatersrand basin ounces, on which basis alone the transaction looks good value. The acquisition follows the 10 January announcement of a 27% increase in indicated gold and uranium resources at DBM, with the associated pre-feasibility study (PFS) now fast-tracked for completion in May 2012. <br />ISIN: ZAE000079703]]></description>
      <dc:date>2012-02-03T11:10:44+00:00</dc:date>
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    <item>
      <title>Amur Minerals Corporation &#45; District scale nickel?</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/amur-minerals-corporation</link>
      <headline>District scale nickel?</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Amur Minerals Corporation: While Amur pursues final approval for its Kun-Manie mining licence with the Russian authorities, recent exploration results achieved over its lease area have led management to believe that what might be at stake is not the exploitation of three discrete deposits (as stated in the November 2007 SRK PFS), but the mining of a new and incredibly rare nickel sulphide district. Although Amur&#8217;s licence area is not known to contain massive nickel sulphide, the extent of pervasive lower grade nickel mineralisation at surface lends itself to numerous shallow open pits being mined and, in all likelihood, a call for a new and improved revised feasibility study being completed. <br />ISIN: VGG042401007]]></description>
      <dc:date>2012-02-03T10:54:13+00:00</dc:date>
    </item>


    <item>
      <title>African Barrick Gold &#45; 27% discount to peers</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/african-barrick-gold</link>
      <headline>27% discount to peers</headline>
      <description>Edison Investment Research - <![CDATA[Mining - African Barrick Gold: On 27 January, African Barrick (ABG) announced a four-fold increase in resources at its 100% owned Nyanzaga Project (comprising the Tusker and Kilimani deposits), with a 1,012% increase in resources in the &#8216;indicated&#8217; category. In addition to increasing the declared resource at Nyanzaga, the upgrade increased ABG&#8217;s total resource base (based on its year-end 2010 numbers, excluding reserves) by 27.4%, to 14.5Moz, with a 48.4% increase in resources in the indicated category. <br />ISIN: GB00B61D2N63]]></description>
      <dc:date>2012-02-02T08:28:38+00:00</dc:date>
    </item>


    <item>
      <title>Red Rock Resources &#45; Growing clarity</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/red-rock-resources</link>
      <headline>Growing clarity</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Red Rock Resources: Red Rock Resources has continued its transition in 2011 away from a holding company function towards an owner-operator one. As such, it begins 2012 with three major assets over which it has operational control in Kenya, Colombia and Greenland, in addition to its residual 74.2m shareholding in Jupiter Mines &#8211; alone worth 1.6p per Red Rock share. <br />ISIN: GB00B0CQLF79]]></description>
      <dc:date>2012-01-31T08:24:49+00:00</dc:date>
    </item>


    <item>
      <title>Alkane Resources &#45; Dubbo very robust</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/alkane-resources</link>
      <headline>Dubbo very robust</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Alkane Resources: Media attention concerning the rare earth group of elements has dragged negative sentiment towards Alkane&#8217;s flagship Dubbo Zirconia Project (DZP). Indeed, prices for the DZP basket of goods (Zr, Nb, LREE and HREE based concentrates) decreased in Q411 (resulting in a 40% and 22% decrease in LREE and HREE Dubbo concentrate prices respectively between Q311 and Q411). However, our base case valuation (A$3.02/share excluding McPhillamys value of A$0.42) is based on significantly more conservative price estimates (indicative of those seen in Q111), and, maybe surprisingly, if we apply the &#8216;depressed&#8217; rare earth prices seen in Q411, our base case increases by 129% to A$7.05/share. <br />ISIN: AU000000ALK9]]></description>
      <dc:date>2012-01-26T12:14:54+00:00</dc:date>
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    <item>
      <title>Sirius Minerals &#45; SM2 drill result</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/sirius-minerals</link>
      <headline>SM2 drill result</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Sirius Minerals: Sirius Minerals has released preliminary core results for hole SM2, targeting the Fordon polyhalite seam at its York Potash Project. Based on the two polyhalite seams intersected (totalling 67.6m) and applying the same valuation assumptions as our November 2011 update, we value the net area of influence of both SM1 and SM2 at &#163;0.62 (including &#163;0.09/share for the implied tonnages of the Boulby and Sneaton seams intersected in SM1; these were not recovered in SM2 to reach the Fordon Seam quickly after delays in drilling the upper parts of the hole). This is a 129% uplift on our &#163;0.27/share valuation of SM1 alone (announced November 2011). <br />ISIN: GB00B0DG3H29]]></description>
      <dc:date>2012-01-25T13:45:46+00:00</dc:date>
    </item>


    <item>
      <title>Goldplat &#45; Kilimapesa gold pour</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/goldplat</link>
      <headline>Kilimapesa gold pour</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Goldplat: Goldplat has announced it has poured first gold at its Kilimapesa gold mine in Kenya after successfully commissioning the elution plant that allows Kilimapesa to smelt and produce gold bullion on site. This first pour is a significant milestone towards forecast production of 3,829oz of gold in the first year, and 10,000oz per year thereafter. The focus for Kilimapesa is now to increase the JORC resource at the project towards 500,000oz of gold and increase the plant capacity to 3,000 tonnes per month. This should be a significant catalyst for value generation for Goldplat in FY12 (see our 5 October 2011 update note). <br />ISIN: GB00B0HCWM45]]></description>
      <dc:date>2012-01-20T10:51:11+00:00</dc:date>
    </item>


    <item>
      <title>African Barrick Gold &#45; Q4 production results</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/african-barrick-gold</link>
      <headline>Q4 production results</headline>
      <description>Edison Investment Research - <![CDATA[Mining - African Barrick Gold: In the fourth quarter of 2011, ABG reported the production of 160,020oz of gold to bring its total for the year to 688,278oz. This is in line with guidance at the time of its December announcement, when it recognised that continued power disruptions (which affected three of ABG&#8217;s four mines) would cost it 35,000-40,000oz in lost production. We have adjusted our earnings fractionally in the light of the company&#8217;s announcement. In the meantime, it has indicated that it expects production for FY12 to be >700koz with inflationary pressure on costs running at c 10-15%. <br />ISIN: GB00B61D2N63]]></description>
      <dc:date>2012-01-19T09:51:40+00:00</dc:date>
    </item>


    <item>
      <title>Hambledon Mining &#45; Marked improvement</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/Hambledon-Mining</link>
      <headline>Marked improvement</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Hambledon Mining: Hambledon (AIM: HMB) has released an operational update for its Sekisovskoye gold mine in Kazakhstan. Of most significance is that initial production from the new underground mine phase (initiated December 2011) has increased the overall processed gold grade by 22% (Q311: 1.05g/t Au cf Q411: 1.28g/t Au). This has allowed the company to somewhat mitigate the plant shutdown (which occurred in November due to a small leak in a tailings pond lining) and still record a 5% improvement in FY11 tonnages processed over that achieved in FY10. Stated production for Q411 was 5,446oz Au with total 2011 production recorded at 21,029ozs, 3.4% higher than our 2011 forecast of 20,338oz. 2011 annual financial results are due around May 2012. <br />]]></description>
      <dc:date>2012-01-18T10:16:01+00:00</dc:date>
    </item>


    <item>
      <title>Arian Silver &#45; Drilling results</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/arian-silver</link>
      <headline>Drilling results</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Arian Silver: Further to the release of drilling results last October, this week Arian released the assay results of an additional 15 holes and an IP survey that we estimate is consistent with the potential for an additional 55.6Moz of silver &#8211; a 63% increase on its current JORC-compliant resource. Assuming the 55.6Moz are categorised in the same proportion as existing resources, we estimate their value (at sector average valuations) to be c US$148m, or US$0.49/&#163;0.32 per share. At Arian&#8217;s currently discounted valuation of US$0.733 per ounce, a resource increase of 55.6Moz would equate to a valuation uplift of US$41m, or US$0.14/&#163;0.09 per share. <br />ISIN: VGG0472G1063]]></description>
      <dc:date>2012-01-18T09:57:27+00:00</dc:date>
    </item>


    <item>
      <title>Cluff Gold &#45; Q4 production report</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/cluff-gold</link>
      <headline>Q4 production report</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Cluff Gold: In the full year to December 2011, Cluff reported a 23.3% increase in ore mined, a 7.7% decrease in the stripping ratio and a 6.2% increase in ore processed compared to 2010. As a result, and despite a number of operational headwinds, gold produced during the year exceeded its target of 70,000oz by 2.2%. <br />ISIN: GB00B04M1L91]]></description>
      <dc:date>2012-01-17T10:42:07+00:00</dc:date>
    </item>


    <item>
      <title>South American Silver &#45; Hi&#45;ho silver!</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/south-american-silver-corp</link>
      <headline>Hi&#45;ho silver!</headline>
      <description>Edison Investment Research - <![CDATA[Mining - South American Silver Corp: South American Silver intends to enter the ranks of the world&#8217;s top silver producers by developing its Malku Khota (100%) silver-indium-gallium project in Bolivia (commissioning due Q115) and exploring for gold-copper-silver at its Escalones (100%) project in Chile. Based on the 10 May 2011 Malku Khota Preliminary Economic Assessment (PEA) findings and valuing the recently announced Escalones maiden resource (using a US$59/t inferred Cu multiple on the 4.5BIbs CuEq resource), our total valuation for South American Silver is US$10.09/share (10% discount and US$25/oz Ag). <br />ISIN: CA8363071082]]></description>
      <dc:date>2012-01-10T16:07:29+00:00</dc:date>
    </item>


    <item>
      <title>African Eagle Resources &#45; Dutwa project manager</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/african-eagle-resources</link>
      <headline>Dutwa project manager</headline>
      <description>Edison Investment Research - <![CDATA[Mining - African Eagle Resources: African Eagle has announced the appointment of Aidan Schoonbee as project manager for the development of its flagship Dutwa nickel project in Tanzania. Mr Schoobee, with his experience in extractive metallurgy, bolsters African Eagle&#8217;s project management, which recently saw the appointment of Trevor Moss as CEO (former COO at Nevsun Resources&#8217; Bisha Mine in Eritrea). Mr Schoonbee has considerable experience in plant operations and technical feasibility works, most notably progressing the Morupule Colliery Expansion in Botswana from feasibility to operation for the Debswana Diamond Company. <br />ISIN: GB0003394813]]></description>
      <dc:date>2012-01-09T16:04:29+00:00</dc:date>
    </item>


    <item>
      <title>Aureus Mining &#45; Imminent DFS/site visit</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/aureus-mining</link>
      <headline>Imminent DFS/site visit</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Aureus Mining: The New Liberty project is one of the highest grade developments in West Africa with an estimated indicated mineral resource of 1.5Moz at 3.72g/t of gold. The December 2010 preliminary economic assessment pointed to an 8.5 year mine life from H213 with production of 100,000oz in the first five years. A site visit by Edison in December has since confirmed that Aureus is moving towards finalising its feasibility study for the first quarter of 2012, including an announcement of reserve estimates. In the meantime, diamond core drilling for the feasibility study has been completed and an updated NI 43-101 compliant resource update is also scheduled for release in Q1. <br />ISIN: CA0515471070]]></description>
      <dc:date>2012-01-09T08:08:44+00:00</dc:date>
    </item>


    <item>
      <title>Wolf Minerals &#45; Pre&#45;development works</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/wolf-minerals</link>
      <headline>Pre&#45;development works</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Wolf Minerals: We attended a site tour of Wolf Minerals&#8217; world-class Hemerdon tungsten project in Devon, England, on 16 December 2011. Media reports of the UK&#8217;s increase in mine project development have been well documented, with the notable examples of both Wolf Minerals and Sirius Minerals (AIM:SXX, potash in North Yorkshire). However, Wolf still appears low on the investor&#8217;s radar, perhaps due to Hemerdon being a tungsten project, therefore concerned with a relatively unknown (but strongly demanded) commodity. During our site visit, we were impressed by Wolf&#8217;s efforts to develop Hemerdon, with planning permission in place, link road development almost underway and 50% of the &#163;110m capital requirement all but secured (via senior debt facilities). Wolf now faces the crucial challenge of raising the remaining money to develop Hemerdon on the equity markets (expected early 2012), and potentially through subordinated debt secured with its eventual tungsten off-take partner(s). <br />ISIN: AU000000WLF3]]></description>
      <dc:date>2012-01-06T10:59:34+00:00</dc:date>
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    <item>
      <title>MDM Engineering Group &#45; Interim dividend increase</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/MDM-Engineering-Group</link>
      <headline>Interim dividend increase</headline>
      <description>Edison Investment Research - <![CDATA[Mining - MDM Engineering Group: MDM Engineering Group&#8217;s (MDME) strong results for the six months ended 30 September 2011 includes a fivefold increase in interim dividend, pointing to a prospective yield of 4.7%. MDME&#8217;s return to profitability over the last 12 months is on the back of seven execution projects representing some US$600m of confirmed contract value work with leading mining industry names. In its accompanying statement management expressed confidence about second half earnings, and points to a pipeline of potential projects valued at c US$1.5-2.0bn. <br />ISIN: VGG5941V1058]]></description>
      <dc:date>2011-12-16T10:17:35+00:00</dc:date>
    </item>


    <item>
      <title>Bezant Resources &#45; Focus turns to Eureka</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/bezant-resources</link>
      <headline>Focus turns to Eureka</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Bezant Resources: Bezant shareholders have approved the disposal of the Mankayan project in the Philippines via a cash and option agreement. The option agreement, valued at US$70m, is for the disposal of Asean Copper Investments to Gold Fields. The disposal is a sound choice for Bezant as it has arguably developed the Mankayan project close to the constraints for a company of its size. In the event that the option is exercised, Bezant intends to release the funds to be used on developing the less capital intensive Eureka Project in Argentina, with the balance of the funds to be returned to shareholders in a special dividend. <br />ISIN: GB00B1CKQD97]]></description>
      <dc:date>2011-12-15T16:31:29+00:00</dc:date>
    </item>


    <item>
      <title>Gemfields &#45; Sales remain strong</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/gemfields</link>
      <headline>Sales remain strong</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Gemfields: The November 2011 auction of lower-quality emeralds generated revenue of US$11m giving year-to-date revenues of US$42.6m with high-quality  auctions scheduled for March 2012 and June 2012 still due in the current financial year. This reflects continued strong demand and the success of management&#8217;s marketing initiatives, which have raised the global status of Gemfields&#8217; ethical Zambian emeralds. The operational update for the quarter to 30 September reflected the planned transition phase with a significant increase in waste rock removal and consequent reduction in emerald output, likely to result in improved security, operational efficiencies and production outputs in the longer term. <br />ISIN: GB00B0HX1083]]></description>
      <dc:date>2011-12-15T13:18:06+00:00</dc:date>
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    <item>
      <title>Afferro Mining &#45; Putu sale confirmed</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/afferro-mining</link>
      <headline>Putu sale confirmed</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Afferro Mining: Afferro has announced the sale of its 38.5% interest in the Putu iron ore project to Severstal for at least US$115m. The company plans to spend the proceeds of the sale on further development of its 100%-owned flagship Nkout iron ore project in Cameroon. We believe the deal is value accretive for the company as it values Putu&#8217;s attributable contained Fe resource at US$0.25/t compared to the company&#8217;s &#8220;pre-deal&#8221; multiple of only US$0.05/t. We believe the significant cash cushion will provide greater flexibility, reducing the company&#8217;s liquidity and execution risks. <br />ISIN: CA00818V1031]]></description>
      <dc:date>2011-12-15T10:21:42+00:00</dc:date>
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    <item>
      <title>Cluff Gold &#45; Record Q3/Q3 preview</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/cluff-gold</link>
      <headline>Record Q3/Q3 preview</headline>
      <description>Edison Investment Research - <![CDATA[Mining - Cluff Gold: Cluff Gold&#8217;s Q3 results were characterised by a high level of (softer) stacked ore at Kalsaka, improved grades at depth and a sharp (24.5%) reduction in the strip ratio to 5.83 (waste:ore), leading to record quarterly revenue and profit before tax. As a result, basic earnings per share increased from a loss of 1.77c in Q2 to a profit of 4.82c in Q3. We forecast that production will fall back again in Q4 as a result of pit wall failures in the wake of seasonal rains, which has both sterilised and removed mineable ore, and necessitated additional waste rock clean-up. In addition, capacity utilisation is likely to fall as Kalsaka commissions a new crushing circuit. However, having produced 55,129oz in the year to date, barring exceptional circumstances, Kalsaka will exceed the 70,000oz target set for it in FY11. <br />ISIN: GB00B04M1L91]]></description>
      <dc:date>2011-12-14T09:08:25+00:00</dc:date>
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