Mining 窶� Recent Growth Strategy Observations
2020 was dominated by managing the impact of the COVID-19 pandemic. The initial impact on the mining sector was a tightening of the equity markets between February and May which led to some distressed equity raisings and a number of our clients investigating specialist debt funding options for refinancing. Interestingly this highlighted the availability of flexible, covenant-lite debt options both nationally and internationally at competitive prices. The second half of the year has seen a strong rebound in the equity markets led by continued strong gold and iron ore prices and the focus of many of our clients has shifted strongly to accelerating growth (exploration, project development and acquisitions). COVID-19 is still presenting challenges, with the WA border closures exacerbating skills shortages more broadly in WA and contributing to the current shortage of availability of exploration drill rigs.
S&P/ASX 300 Metals & Mining
Many of our mining clients are focused on maximising the opportunity presented by the current 窶藁ini boom窶� by updating and challenging their strategic plans and ensuring they understand their critical paths, and having robust implementation plans in place to deliver on accelerated timelines /milestones and value creation. One key theme that has increasingly been a focus item for Boards, management teams, and importantly institutional investors, has been Environmental, Social and Governance (ESG) strategy, targets and reporting. Understanding best practice for a company窶冱 stage of development, setting clear ESG targets and developing an implementation plan that enables companies to demonstrate leadership is coming under increasing scrutiny from external stakeholders.
The emergence of the next group of junior developers and producers in mining is evident in market announcements and was highlighted at Diggers and Dealers 2020. The demand for gold, copper and iron ore and the growing demand for battery minerals globally is widely expected to continue to support Australia窶冱 mining sector in the short to medium term.
Mainsheet works with explorers, developers and producers the mining sector to support challenging and developing robust strategy and implementation plans; M&A strategy/planning, debt financing/ efinancing, detailed financial modelling for financing or business needs and support with commercial analysis and decision making (major contracts, offtake agreements, logistics solutions, significant operational investments).
Mainsheet continues to grow and extend its offering to the mining sector. If you need support to develop, track or implement your plans, please contact us here.