Edison Investment Research Mining Sector Report: Gold - Valuation Benchmarks are Obsolete

Jan 28, 2010, 12:45 ET from Edison Investment Research

LONDON, January 28 /PRNewswire/ -- Edison Investment Research has re-run its analysis to determine differentiated values for 'measured', 'indicated' and 'inferred' resource ounces to include the Canadian, Australian and South African markets as well as the London one. In doing so, it has been able to determine that the average value of a 'measured' resource ounce globally is US$340/oz, while that of an 'indicated' ounce is US$159/oz and that of an 'inferred' ounce is US$34/oz (excluding Witwatersrand ounces). An average ounce is worth US$158.56/oz, which contrasts sharply with both its cost of discovery (US$8.81/oz, as determined by leading international accountancy firm BDO) and a historic benchmark valuation of US$35/oz.

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http://www.edisoninvestmentresearch.co.uk/sectorreports/GoldJan10.pdf

This report analyses a total of 132 mining companies listed on the London, Toronto, Australian and Johannesburg stock exchanges, including Randgold Resources (RRS), Barrick Gold (ABX), Newcrest Mining (NCM) and Anglogold Ashanti (ANG).

Edison is Europe's leading independent investment research company. It has won industry recognition, with awards in both the UK and internationally. The team of more than 50 includes over 30 analysts supported by a department of supervisory analysts, editors and assistants. Edison writes on more than 250 companies across every sector and works directly with corporates, investment banks, brokers and fund managers. Edison's research is read by every major institutional investor in the UK, as well as by the private client broker and international investor communities. Edison was founded in 2003 and is authorised and regulated by the Financial Services Authority.

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SOURCE Edison Investment Research