DUE DILIGENCE
Due diligence consulting, done largely for financial institutions and
investors, but also including minerals producers, is one of our core services
and is done off the base of being retained typically by the company's investment
banker as an independent expert to provide objective views, supportable in
a technical and industry context, on the quality of the company's mineral
assets as translated into projections of cash flow, profits and investment.
Typically, the work that we do would:
| Involve site visits by us to the company's principal assets to review the company's projections for its operating costs, capital costs, mining schedules, level of production, mine life, considerations of environmental compliance/costs, development plan and budgets and technical and operating viability. | |
| Cover all significant mining assets, to include mine, mill (smelter or refinery, if relevant), infrastructure, mine plans, technology considerations, environmental compliance, etc. | |
| Provide for exploration properties where our work extends beyond development and analysis of the data enumerated above to provide a complete independent valuation. | |
| Provide global, regional and company projections of production and prices. |
We then prepare a report
in draft form encompassing the above and review it with the client management.
Based upon their inputs to include any due diligence that the client may have
done, we may adopt all or some of these views in our draft report, prior to
the development and submission of our final report.
