Edison Initiates Coverage on Amur Minerals

Jul 23, 2015, 08:50 ET from Edison Investment Research

LONDON, July 23, 2015 /PRNewswire/ --

Edison Investment Research, a leading international investment research firm, announces the initiation of full coverage of Amur Minerals 

Highlights of the analysis on Amur Minerals by Edison's metals & mining analysts, Charles Gibson and Tom Hayes, include:

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Amur Minerals is an exploration and development company focused on base metal projects located in Russia's Far East. The company's principal asset is the Kun-Manie nickel sulphide deposit in the Amur Oblast, containing more than half a million tonnes of contained nickel in at least five deposits.

After accounting for likely future dilution to meet the equity funding requirements of the projects, the respective values per share for the concentrate, low-grade matte, high-grade matte and refined metal options are 56 US cents, 72c, 61c and 73c, respectively. Of note is the fact that the concentrate option captures 77% of the maximum potential value of the project (as represented by the refinery option), but that the low-grade matte option captures 99%. By contrast, the additional 'value' associated with the high-grade matte and refinery options is largely dissipated by the extra dilution associated with the larger equity funding required to achieve them. In the meantime, Amur's resource multiple of US$231 per tonne of contained nickel equates to 2.0% of the current nickel spot price.

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For more information please contact:
Charles Gibson
Edison Investment Research

Tom Hayes
Edison Investment Research

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SOURCE Edison Investment Research