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The prime focus of AIM and TSX Listed EMED Mining (LSE:EMED) is on restarting the huge Rio Tinto copper mine in Spain but it was set up in Cyprus (it initially targeted a small copper deposit there) and so lo and behold it still has some Cypriot bank exposure. And yesterday the company announced that as a result it will fall victim to the great EU bank robbery. The following explains…
The company reports that, based on its preliminary enquiries, it is likely to face a levy of circa €20,000 if applied to its bank deposits in a Cypriot bank, with a potential further circa €250,000 liability if applied to a UK bank deposit which the company administers via the bank’s Cyprus branch. Since Spain will almost certainly require another bailout soon, and with the precedent set, I would hope that EMED is running an exceptionally low bank balance in that country and is holding most of its cash in a country outside the Evil Empire.
That said, in the greater scheme of EMED bank balances, the present news is a pain but not really material – reflected in a share price only a touch lower on the week so far, at a present 12.125p. Click here for a prior view from a leading broker of EMED’s potential
My own detailed analysis can be found here when I suggested I buying EMED with the shares at 9.625p
My current view is that a share price heading towards 30p is very possible down the line and that there will be a decent re-rating when permits arrive; the company focused on attaining these “during the first two quarters of 2013”. In a share tip with the stock at 11.25p the other day the rationale behind this is explained in detail as you can read HERE
Tom Winnifrith writes for 10 US and UK financial websites. You can get alerts on all of his articles by following him on twitter @tomwinnifrith
You can also follow his thoughts on his own website at www.TomWinnifrith.com
