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Corporate Finance services

Corporate Finance Solutions

Challenges mining companies face
Accessing cash: With mining projects invariably requiring significant investment to bring them into operation, having access to sufficient cash resources is key to the success of any mining company. While some miners are cash rich, others have to look to equity partners, capital markets and banks for cash, all of which are jittery after suffering losses in the global recession of 2008/09 and the looming economic troubles in Europe.

Growing through acquisition: Finding the right mining projects can be a significant challenge and ensuring all risks and opportunities are assessed as part of the deal process is vital in maximising shareholder value.

How does the Deloitte solution address the business issues?
The Deloitte M&A Mining Advisory network extends across the globe, and is effective at bringing vendors, bidders, investors and debt providers together at a key strategic level. Access to an effective global network with continuous enquiries from parties in the resources sector enables the Advisory team to make the right contact, at the right time, with key decision makers. Our Advisory team have experienced increasing levels of activity where Asia Pacific investors view Africa as a critical partner in developing and securing long term commodity supply. We use our network for the benefit of our clients and as a platform for mining M&A activity and debt and equity capital raising.

We have a track record of working closely with investments banks as part of multi-disciplinary IPO teams to ensure that mining companies extract the maximum value from initial and subsequent capital raisings. As well as traditional competent person, reporting accountant and sponsor roles, Deloitte also offers services such as IPO readiness reviews, capital structure assessments, drafting and coordination of listing documents and road show support.

Venmyn and Deloitte have recently merged to offer unique integrated technical, financial, legal and tax transaction services on mining assets. Venmyn is a leading specialist mineral valuation advisor offering full scope technical due diligence, as well as mineral asset valuation and economic assessments. We design an integrated due diligence scope tailored to specific project life-cycle stages (early to late stage exploration, development or operating mine). Our due diligence covers key areas that an investor and/or funder needs to consider as part of its decision making process. We provide one issue focused integrated due diligence report. The various outputs generated are used to determine impacts on purchase price and the sale and purchase agreement. Identification of issues and potential solutions for post-merger implementation are also vital outflows of this process.

Benefits to your organisation
Our clients include large mining concerns, investments funds and junior mines. We have a well-developed network with Deloitte offices in foreign markets, and are able to provide integrated services to ensure you obtain seamless support, irrespective of the country where you plan to transact.

Contact
Karin Hodson
Tel: +27 (0)11 806 5668
Email: khodson@deloitte.co.za

Michael Dale
Tel: +27 (0)11 209 6674
Email: midale@deloitte.co.za

Chris de Vries
Tel: +27 (0)11 806 5960
Email: cdevries@deloitte.co.za

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