Short-term challenges to the mining and metals market offer longer-term opportunities. Our specialists understand the new and old financial, operational and regulatory problems you face and offer practical and relevant solutions to help your business succeed.
Our team is dedicated to providing advice and services to a range of business within the mining and metals sector across the world. Our knowledge and experience from working with privately owned businesses, private equity backed and quoted businesses, enables us to help you to achieve your strategic goals.
Understanding your needs
The mining and metals sector has an attractive long term future but is facing new challenges in the short term. The perennial problem facing the sector is matching the short- and long-term pressures of supply and demand so that there is a fair balance between the owners, the explorers and producers and the end users of the world's finite mineral resources. This results in a highly competitive and cyclical environment in which companies in the sector operate. Whilst dominated by major global players, there is a significant role to play for the junior mining companies who identify and explore assets at the margins and at early stages. This creates significant investor opportunities as well as facing the decision whether to sell to larger players or develop their mining assets themselves as a strategic play.
The prospects for the global economy are still challenging with the weakening of Chinese Yuan, rising oil prices and a fall in demand from China. This needs to be balanced against the mid to longer term pressures of security of supply of key resources and strong growth forecasts for developing economies over the next decade. Those countries that are resource rich, particularly those in Africa, are looking to retain more of the benefits from the industry beyond royalty and tax take and are expecting to retain a greater equity share of their mining and metals industries, whilst recognising that they still need the technical know-how and demand from foreign investors to properly exploit the resources. Mining and metals companies bravely face these continued challenges together with increased environmental concerns, skilled labour shortages and political risk, but the sector as a whole remains attractive to investors and companies alike.
Key areas where we can work with you to help you to overcome challenges and maximise opportunities include:
- practical experience of capital markets transactions and an understanding of the technical requirements involved, including liaison with competent persons and other specialists;
- identifying the most efficient corporate tax structure for a global resources group;
- understanding and complying with the UK Bribery Act and the Modern Slavery Act by a review and implementation of appropriate systems;
- understanding the necessary board procedures and how best practice corporate governance can work for the natural resources sector;
- how to ensure the operation of good financial controls when dealing with remote operational locations;
- audit; and
- financial modelling.
Get in touch today to discuss your growth plans or for advice on best practice