Edison Gold Report 2010 - How to Value those Ounces in the Ground

As regular readers will know, when reviewing gold miners, we have often paid tribute to the Edison Research gold report from October 09. This report analysed 41 companies listed on the London market and provided a weighted average metric for attributing a value to their measures, indicated and inferred ounces in the ground.

This was the first time a report of this type ( directly focussed on  the value of ounces in the ground), had been seen during this market cycle and it provided investors with a very useful tool for research and reference purposes.

We are therefore delighted to see than Edison have now updated their research and expanded their coverage to include 132 gold companies (with a combines resource of 2 billion ounces) in each of the four major global mining finance centres - London, Canada, Australia and Johannesburg.

The new report is now able to compare valuations not only within, but also between the four major markets. As far as valuations are concerned, the story hasn't changed all that than much (that said, "indicated" ounces in London have had a bit of a filip - up from $30 to $159 per ounce!). But with the coverage now going Global, it will certainly have a much broader reach.

We think it makes for very worthwhile reading and if you appreciate the Edison valuation metric, you will no doubt find the extended cover even more relevent (you may want to link this into your favourites). The conclusions drawn should not come as any surprise either. As the report title suggests:

Gold - Valuation Benchmarks are obsolete!

To see the full Edison report, click here; Gold - Valuation Benchmarks are obsolete!