Edison mining quarterly: April 2012

Published on 25 April 2012

Welcome to the Edison mining quarterly, which contains profiles of 47 companies under coverage.

The book opens with an introduction from sector head, Charles Gibson. He explains that looking at share prices today, it would be easy to forget that there has been a commodity price boom in train for the past decade, let alone the past two years. Yet, while margins, earnings and cash flows have risen in the past two years (in some cases to record levels), driven by commodity prices, share prices have slumped. Not only has this slump been in relative terms, but sometimes also in absolute terms. Hence, there are major gold producers recording record revenues, earnings and cash flows, the share prices of which have underperformed not only the gold price, but are also trading at record lows. Among explorers, there are companies with 10x the resource of two years ago, trading at lower share prices.

Yet the broader economic environment remains one of continued stimulation. In our inaugural mining quarterly, we highlight some of the anomalies that have been created in the current environment and some of the opportunities that exist as a result.

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