1. Metallurgical Coal Sales Contract Assessment - Large Coal Mining Company
Customized investigation of the future potential of a metallurgical coal sales contract. On behalf of our client, a steam coal company who was engaged in acquisition negotiations, we made discrete inquiries as to the economic rationale for a metallurgical coal sales contract, which on the surface did not appear to make economic sense. By means of a discrete investigation of the competitive situation, we were able to advise our client as to the future potential of the contract without disclosing any confidential information. (700-2)
2. Assess Potential Partner Capability - Natural Resources Investment Company
Our client had recently signed an agreement with the Indonesian Government giving it back to back contracts - one to develop a geothermal project and the other to sell the output of the geothermal project to an Indonesian electric utility. Our work focused on determining the reliability and suitability to our client's Indonesian partner to perform the services set forth in his contract.
In doing the work we reviewed all of the agreements between (a) our client and the Indonesian partner, and (b) our client and the Government of Indonesia. We also reviewed the geothermal project's feasibility study; the financing arrangements; the management arrangements and the timetable, with a broad focus on determining the interface between our client (a U.S. company) and the Indonesian partner and the requirements for service from the partner by the U.S. company. (By Indonesian law, each foreign investing company in Indonesia must have a local partner.)
Our work also included analysis and evaluation of the political structure and future economics of Indonesia based in part on interviews with CEOs doing business in Indonesia and, in part, on our own research.
We also used two local Indonesian professional service firms (one a consulting firm and the other a law firm) to assist us in our inquiries regarding our client's Indonesian partner. (728-1)
3. Technical, Operating and Strategic Inputs - Natural Resources Investment Fund
A&S was engaged to provide a natural resources investment fund affiliated with a major global investment bank, with a basic understanding of the minerals industry as well as strategic advice relating to the expected future for various segments of the industry. The fund plans to invest in timber and paper, oil and gas, chemicals and mining. A&S wrote the mining portion of the prospectus, which gave a brief history and description of the global mining industry, discussed the financial impacts and characteristics of the industry, identified the major players and reviewed of the consolidation trend in all segments of the industry. In addition, A&S conducted an intensive seminar for the fund's two senior officers. This seminar, using A&S employees and Associates, provided a comprehensive analysis of the coal, iron and steel, copper, fertilizer, base metals, industrial minerals and precious metals segments of the global minerals businesses. (766-1)
4. Preparation of Industry Position Paper - Major Multi-Industry Company
A&S was hired by a major multi-industry company to prepare a position paper concerning the current status of the metallurgical coal business, the future outlook for metallurgical coal and the alternatives for the client's existing coal business. The paper was worldwide in scope and built upon earlier A&S work for this client. Supply, demand, selling prices, transportation costs, quality and exchange rates were included in the analysis. (760-4a)
5. Assessment of Its Australian Coal Business - Major Independent Oil & Gas Producer
The client wanted an independent assessment of the potential of its Australian coal business. The assessment involved the review of the mining and marketing potential of several coal properties, all of which were in the development mode. The Australian Federal and State Government tendering process for new steam coal supplies was also reviewed. We worked with an Australian coal mining and marketing data house in developing operating cost and sales information on the subject properties and operations and on competing properties. (729-1)
6. Environmental Requirements of the North American Minerals/Metals Industry - Major Public Accounting Firm
The focal point of this study, done for a big six accounting firm, was to assist them in determining the future markets for environmental consulting services. Our work involved getting interviews with, and interviewing in conjunction with our client, the top managements of fourteen major mining companies in North America.
Our goal in the interviews was to gain insight and understanding of the needs of the North American metal mining industry to meeting its environmental requirements, and further, the characteristics of the consulting services they felt would be needed to meet these needs. The judgment to be made is whether the market sizes and characteristics were such that the accounting firm could enter this business on a profitable basis and, if so, how. (706-5)
7. Strategic Briefing - Major U.S. Mining Company
Strategic briefing to a newly appointed minerals company CEO. Our client was the newly appointed CEO of a one-commodity minerals firm that had decided upon an acquisition and diversification strategy. We were engaged to brief the CEO and his investment bankers on our view of the investment potential of up to 100 minerals commodities, including our view of those commodities that offered the best opportunities. (654-5)
8. Litigation Support - U.S. Government
We were retained by a major agency of the United States government to provide support in litigation between the U.S. Government and a major oil company involving a major block of coal reserves focusing on the tax consequences incurred in the sale of the reserves. The essence of our support involved the following: review of the proposed mine plan; review of the valuation; identification of all risks involved in the business venture, of which the reserves were an integral part. The case was ultimately settled out of court and the Justice Dept. expressed satisfaction with the result. (727-1)
9. Market Suitability and Assessment Study - Process Development Company
Our client, a development company, has, over the last decade, developed innovative proprietary biotechnology for processing minerals and environmental remediation. The technology encompasses processes for recovering gold from refractory ores and concentrates, recovery of base metals from sulfide ores and concentrates, desulfurizing coal and environmental remediation of contaminated soils. Patents covering the technology have been granted, or are pending, in the United States and other countries.
The company is currently conducting pilot scale tests of the technology on sulfide gold concentrates from mines in North America and is planning pilot scale tests for desulfurizing coal and decontamination of soils, with the objective of demonstrating the capabilities of the technology at large scale. The company intends to license the technology to mining companies for commercial use. The company also is planning to build custom biooxidation plants in the United States and other countries to process and recover gold from refractory sulfide gold concentrates for third parties for a toll fee.
In light of this background, it was key for the company to find out - and accordingly they commissioned us to do so - the availability of refractory gold concentrates in North America and the economics pertaining to the sale of such concentrates to North American smelters. Thus, a key component of our work output was our projections of the price and tonnage of such refractory gold concentrates that would be sold to North American smelters.
To do the work, we launched a two-pronged approach. First, we surveyed base metal smelters in North America to learn aspects of their commercial arrangements with mining companies. Second, we launched an exercise to identify gold concentrate produced in the United States and Canada.
In light of this two-pronged approach we were able to learn about refractory gold concentrates from the point of view of potential customers and potential competitors. Using these data as a base, we ultimately provided a forecast of tonnage and price for these refractory gold concentrates. (738-1)
10. Industrial Minerals Analysis - Investment Fund Manager
Our client retained A&S to develop a historical and current data base for two industrial minerals; perlite and diatomite. Data was developed on a worldwide basis for:
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Physical and chemical properties, |
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Reserves, |
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Mining and processing methods, |
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Uses and applications, |
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Annual production, |
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Health and environmental risks, |
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Competing products and technological advances, |
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Selling prices. |
11. Review of Financial Model - Large International Accounting Firm
Acting on our client's instruction we reviewed its client's financial model of a major diamond project to determine the sophistication of the modeling techniques and to analyze the validity and appropriateness of the input data. Results from the client's initial modeling indicated that the project would have returned a respectable positive NPV; however, our independent review and analysis suggested a less positive result could be expected. The client elected not to proceed with the project at this time. (706-31 ASA)
12. Market Survey and Analysis - Major Metals Association
Develop concepts, ideas and designs to improve U.S. marketing practices. Evaluation of the U.S. copper and brass industry and the outlook for its future. Here we identified leading fabricators and interviewed them off the basis of a tight interview questionnaire to determine their perception of the U.S. copper and brass industry in terms of both its strengths and weaknesses, as well as their views as to the outlook of the future. Following these interviews we developed summary findings covering the attitudes towards the basic industry, the industry's strengths and weaknesses, and finally the survey respondents' perception of the future and our analyses of these responses. (528-1)
13. Provide Litigation Support in a Coal Contract Arbitration Case - Major U.S. Law Firm
The client was a major U.S. coal company whose coal supply contract with a major southeastern utility was in dispute. We provided to the law firm representing the coal company, engineering and geologic oversight and critical review of opposition testimony. (731-1)
14. Litigation Support - Major Law Firm
Litigation support to a major law firm that was engaged in the defense of a major accounting firm against a suit filed by a global base metals mining company that had lost a substantial sum in uncollected accounts receivable when a client of the accounting firm went into bankruptcy. Our role was to provide an industry expert to demonstrate that the plaintiff's loss was due to his failure to follow good commercial practices as these are used within the copper industry. We provided such expertise. The suit was settled out of court. (712-1)
