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Press release from PR Newswire

Edison Expands its US Mining Sector Presence with Launch of Coverage of Duluth Metals

Monday, June 03, 2013

Edison Expands its US Mining Sector Presence with Launch of Coverage of Duluth Metals

08:46 EDT Monday, June 03, 2013

LONDON, June 3, 2013 /PRNewswire/ --

Edison Investment Research, a leading international investment research firm, announces the initiation of coverage of Duluth Metals (TSX: DM), a mineral development company focused on developing its Twin Metals Minnesota (TMM) copper-nickel-platinum group metals project.

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Edison's comprehensive report, Steadily unlocking value, was published today, and examines the investment case for Duluth.

Highlights from the analysis by Gavin Wood, an analyst on Edison's mining team, include:

After a 60% increase in its 'indicated' resource in December, TMM is one of the largest Cu-Ni-PGM polymetallic sulphide deposits in the world, amounting to 2.4bn tons at 0.52% Cu, 0.17% Ni and 0.48g/t (3PGE).

A preliminary economic assessment of the project, conducted in 2009, envisaged a 40kt per day operation, producing 19ktpa Ni at a negative cash cost of US$0.72/lb over 22 years in return for an investment of US$1.3bn in initial capex. However, this will be superseded by a pre-feasibility study (PFS), currently underway, which is aiming to define a large-scale, vertically integrated mining complex with a phased underground mine plan and could potentially indicate a doubled throughput rate of 80ktpd.

From July 2012, Antofagasta is contributing 65% funding for the TMM JV, thus reducing Duluth's cash requirements. Cash is currently around C$32m and, assuming Antofagasta exercises its option to acquire a further 25% of the TMM project, we estimate that Duluth requires only a further C$126m to fund TMM through BFS and pre-construction alongside its exploration programme, which it should be able to fund through equity.

Edison's base case valuation of Duluth is C$3.53 after dilution, or C$5.01 with the completion of the TMM project PFS.

Duluth Metals is a mineral development company focused on developing its Twin Metals Minnesota copper-nickel-cobalt-platinum-palladium-gold-silver project via a joint venture with Antofagasta.

For the full report see:

The launch of coverage on Duluth Metals marks a further expansion of Edison's worldwide mining coverage. Edison provides research coverage on more than 100 mining companies across the UK, mainland Europe, North America and Australasia. All reports published by Edison are available to download free of charge from its website

About Edison Investment Research

Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals works with leading companies, fund managers and investment banks worldwide to support its capital markets activity. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Berlin, Sydney and Wellington. Edison is authorised and regulated by the Financial Services Authority (

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact: Gavin Wood Edison Investment Research +44-(0)20-3077-5700

SOURCE Edison Investment Research

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