Our Approach

Understanding Total Risk

Total Risk = Sovereign and Social Risk + Technical Risk + Permitting Risk + Business Risk

We subscribe to the view that risk management is the key to success in mining: the proper understand of, and management of risk is the most important aspect in developing a project.

  • We believe in spending as much time assessing real risk as determining valuation.
  • Our team has considerable experience in de-risking mining projects in several regions.

Sovereign and Social Risk

  • Is the Government open for business and investment?
  • How stable is the economy, the government and political infrastructure?

Technical Risk

  • Each stage is required for a project to become a mine:
  • Discovery Delineation PEA Pre-feasibility study Final feasibility study and Permitting Project Financing Construction Production Optimization Normal Operations Closure
  • After every phase of the project’s life, the risks are lower and valuation increases.

Permitting Risk

  • Mining companies must earn a social license to operate and that process must start before the actual permitting process officially begins:
    • We believe in partnering and engaging the local community from day one.
    • What are their concerns and how can we support their local objectives: Employment, safety, community support and environmental protection.
    • We understand that proper communication is one of the most important parts of the permitting process.
    • Good companies do this well and assessing this is a key part of our due diligence.

Business Risk

  • Are business and government regulations and the political climate appropriate to support business objectives.
  • Risk is mitigated by full transparency to build strong relations within governmental bodies.
  • Is the company resourced with necessary skills and expertise to execute?