Sector reports

Below is a list of sector reports.

Sector report cover
Mining

25/03/2015
Tungsten sector update
Download via: Website

In this report we provide our feedback on the recent site visit to Wolf’s Hemerdon tungsten project. We also discuss the latest sector news, with Wolf upgrading mineral reserves, Ormonde signing a funding agreement with Oaktree Capital, while Almonty has made another approach to Ormonde as well as reporting mixed Q115 financial results. At the same time, Northcliff continues to make progress on the permitting front.

Companies mentioned

Sector report cover
Mining

06/02/2015
Mining sector report: Gold: The value of gold and other metals
Download via: Website

In past publications, Edison has derived differentiated values for Measured, Indicated and Inferred gold resource ounces listed in London, Canada and Australia. This report updates these numbers and extends the methodology to other metals and minerals. In addition (and in collaboration with BDO), it calculates unit costs of discovery for uranium resources on both a differentiated and an undifferentiated basis.

Companies mentioned

Sector report cover
Consumer Support Services

19/01/2015
The Social Stock Exchange – Connecting impact companies with investors
Download via: Website

Impact Investment is a small but fast-growing investment approach within the larger socially responsible investment field. This report surveys the characteristics of this approach as well as the role played by the Social Stock Exchange (SSX) in connecting investors and companies, via increased transparency and awareness of its member companies and soon also by providing capital raising opportunities. Finally, we present the 12 member companies of the SSX

Companies mentioned
MITIE

Sector report cover
Mining

09/12/2014
Tungsten - Small sector for big returns
Download via: Reuters | Thomson | Website

Global tungsten demand has enjoyed strong historic growth due to the metal’s increasing usage in tooling and a variety of other engineering solutions. Despite slower growth ahead, we expect global tungsten consumption to expand at a CAGR of 3.5% in 2014-18e. Coupled with lagging supply, this leads us to see potential for an APT price recovery. Our view is supported by incentive price analysis suggesting that an APT price above US$350/mtu is required to bring new mine capacity into production. At the equities level, we see a number of producing and advanced tungsten projects that offer good industry exposure.

Companies mentioned
Show companies...Carbine Tungsten (CNQ), King Island Scheelite (KIS), North American Tungsten (NTC), Northcliff Resources (NCF), Tungsten Mining (TGN), Vital Metals (VML)

Sector report cover
General Retailers

12/05/2014
Retail sector report - Challenging the internet premium
Download via: Website

This report looks to challenge the superior rating that successful e-tailers currently stand on relative to multi-channel retailers. Within our selected universe, average benchmark valuations for e-tailers are 5.1-5.6x higher than multi-channel retailers for calendar year (CY) 2014 and 3.6-4.1x higher for CY15. Yet average forecast total shareholder return is just 3.1x higher for CY14 and 3.3x higher for CY15. With no dividends and earnings estimates already in mid-double digits, we query the scope for upside forecast surprise or a relative re-rating for the listed e-tailers.

Companies mentioned
ASOS PLC , French Connection , Next , See more..., AO World, Inditex, Marks and Spencer, Mothercare, Ted Baker

Sector report cover

14/01/2014
Edison white paper - The future of equity research
Download via: Website

Edison Investment Research and Frost Consulting publishes a white paper, The future of equity research, following the publication of the 'Conflicts of Interest' document by the Financial Conduct Authority (FCA) in 2012, and the subsequent consultation paper, Consultation on the use of dealing commission rules, in November 2013. It finds that regulatory change has had a significant impact in shaping the equity research ecosystem. The current proposed changes to the regulations in the FCA papers have the potential to be one of the most significant catalysts for change the industry has seen in a century. If the FCA's proposals remain intact, the authors see six key short-term impacts on the equity research industry.

Companies mentioned

Sector report cover
Mining

20/11/2013
Gold – US$2070 by 2020
Download via: Website

This report is constructed in four distinct sections. In the first, Edison considers the macroeconomic environment within which gold exists and, in particular, the interrelation (both historic and future) of quantitative easing, inflation and interest rates, which it then uses to predict the price of gold until at least 2020. In the second part, Edison updates the in-situ value of exploration resource ounces listed in London, Canada and Australia, differentiated by category (ie whether 'measured', 'indicated' or 'inferred') and compares these with previously calculated global average costs of discovery. In Part III, Edison updates its analysis of mining companies under coverage to derive three series of risk-adjusted discount rates for companies and projects at different stages of development. Finally, in Part IV, Edison combines all of these parameters to create a notional gold mining company, NonSuch Gold Ltd, which it then values at each stage of its development from initial capital raising to treating stockpiles at the end of the life of operations and unwinding working capital and then compares this with the same analysis last year.

Companies mentioned
Carpathian Gold , Hummingbird Resources , Papillon Resources , Atlantic Gold NL , Condor Gold , Ariana Resources , Mariana Resources , See more..., A1 Consolidated, Gold Klondex Mines, AEM SPA (IRS), Kolar Gold, Ampella Mining, Kryso Resources, Anova Metals, Lexam vg Gold, Ariana Resources, Lupaka Gold, Asanko Gold, Mariana Resources, Atlantic Gold, Matsa Resources, Azimuth Resources, Metals Exploration, Azumah Resources, Millennium Minerals, Beadell Resources, Moneta Porcupine mns., Bonterra Resources, Northern Freegold res., Bullabulling Gold, Novagold Resources, Carpathian Gold, Nyota Minerals (lon), Castle Minerals, Oromin Explorations, Chaarat Gold, Orsu Metals (lon), Chesser Resources, Ovoca Gold (lon), Condor Gold, Papillon Resources, Conroy gold & Natural Resources, Patagonia Gold, Coral Gold Resources, PC Gold, Dacian Gold, Perseus Mining, Detour Gold Sage Gold, Doray Minerals, Scotland Resources (lon), Entree Gold, Seabridge Gold, Excalibur Mining, Serabi Gold, Exeter Resource, Shanta Gold, Galantas Gold (lon), SML, Golden Queen mng., Strated International, Goldrush Res., Sulliden Gold, Greatland Gold, Trans Siberian Gold, Gryphon Minerals, Viking Ashanti, Guyana Goldf ields, Hill End Gold, Hummingbird Resources, Indophil Resources, Kalnorth Gold Mines, Kef i Minerals, Kermode Resources

Sector report cover
Oil & Gas

10/10/2013
Fallen angels, rising stars: Old LatAm basins creating fresh opportunities
Download via: Website

A new production trend has been emerging in Latin America. Smaller independent E&P companies have significantly contributed to increased production levels in Colombia, with similar results possible in Argentina, Peru, Paraguay and Trinidad. In this report we introduce three valuation screens based on cash flow, market value and risk, from which we segment our universe of 18 independent oil companies. Our top picks for the region are GeoPark, Americas Petrogas, Madalena, Canacol, Petroamerica and Suroco. Also seen as high potential but slightly higher risk are Crown Point, President, Touchstone and Range.

Companies mentioned
Range Resources , President Energy , Touchstone Exploration