Operate, Expand, Diversify or Divest
The Mining sector is facing headwinds from inflationary pressures and global market uncertainty despite robust demand outlook for key commodities
Auxilium Partners is pleased to present its views on the Western Australian Mining market having regard to its first-hand involvement assisting clients in the advisory and restructuring space.
Issues to consider as you operate, expand, diversify or divest
- Continued inflationary cost pressures with no material relief in the near term
- Tighter and more expensive lending availability
- Russia and Ukraine conflict continues to impact supply and pricing of certain commodities
- Critical minerals including lithium, nickel, aluminium, copper and cobalt are a focus with continued robust investment and demand outlook
- Skilled labour shortages – from drillers and drivers to mining engineers, geologists and metallurgists
- Maintenance of skilled and stable workforce – recruitment and staff management needs to be “smart”
- Supply chain delays and lead times for key consumables needs to managed appropriately
- Operating cost stabilisation and reductions remains challenging
- Increased cost of preparation for Environment Social Governance and ongoing compliance
- Ensuring selection of third-party mining service providers are financially robust and have capability to complete projects to schedule
- Merger and acquisition opportunities to enhance operational efficiencies and synergies
- Appropriate innovation and technology will help drive cost reductions and efficiencies
- Aus miners are seeking to strategically partner with those in the renewables space for future supply and end-users partnering directly with miners for strategic supply e.g major EV manufacturers. See lithium graph
- While share prices have been negatively impacted by global markets equity can be acquired by investors “cheaper” for project’s with the same underlying fundamentals
Key Data Insights
Our key services to mining clients:
- Corporate advisory & debt restructuring
- Independent project management
- Project risk planning
- Operational advisory
- Stakeholder management
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About Auxilium Partners
Auxilium Partners is a WA owned and operated insolvency, forensic accounting and mining advisory firm based in West Perth.
Our partners Bob Jacobs and Andrew Smith are Registered Liquidators with ASIC and Paul Cockburn is a Certified Fraud Examiner.
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