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

By Edison Investment Research, PRNE
Wednesday, January 27, 2010

LONDON, January 28 - 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.

Please click here to view the full report:

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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