Iberian Minerals Corp. | Orest Wowkodaw, CA, CFA, 1.416.869.3092

IZN : TSX-V : C
.47 | C$158.5M | Buy , Target C$1.20

•Q3 results; US$50 million credit facility in the works; maintaining BUY rating;

target trimmed to C$1.20

Event

Iberian reported an adjusted Q3/09 operating loss of
.05 fd, slightly below our estimate

of earnings of
.01 fd and the First Call consensus of a loss of
.02 largely due to higher

taxes. Iberian also reaffirmed its 2010 production guidance. While the company’s expected

funding shortfall during ramp up has increased to US$40-45 million (from US$20-30

million), Iberian has awarded a US$50.0 million revolving credit facility mandate, which is

anticipated to close in January 2010.

Impact

Mixed.

Action

We reiterate our BUY rating but are modestly reducing our 12-month target price to

C$1.20 (from C$1.25). Our revised $1.20 target is based on a 2010 EV/EBITDA multiple of

4.5x. Our BUY rating is based on the company’s very attractive relative valuation and low

risk/cost asset base. A successful ramp up at Aguas Tenidas and the roll off of low priced

copper hedges are critical milestones required to achieve a re-rating in the shares over the

next 12 months.

Valuation

Iberian is currently trading at very attractive 2010E and 2011E EV/EBITDA multiples of

2.3x and 1.4x and at a massive 72.0% discount to our revised 10% NPV valuation of $1.68

per share, which compares to our mid-tier base metal producer coverage universe average

of 5.5x, 3.6x and a 5.7% premium to NPV.