Resources and Mining Services
Australia is beyond the peak of strong levels of mining investment. While substantial investment in committed projects will continue, project deferrals or cancellations have occurred across a broad spectrum of commodities.
Driven by global supply excesses, margins for various commodities have declined to the point where cash margins are breakeven or negative for many operators with weaker cost structures.
Throughout the industry all companies have switched from an expansion/investment focus to one of driving down costs, improving productivity and for some, financial survival.
Throughout Australia, oil and gas continues to be the focus of mining investment, with much of the investment relating to LNG mega projects.
The Ferrier Hodgson resources and mining services team has a strong understanding of the investment market for mining assets and the appetite of key participants to add value to existing and future projects.
Ferrier Hodgson is regarded as a market leader in resources advisory services in Australia and a trusted industry adviser to operators, lenders and financiers to the resources sector.
The resources and mining services team provides clients with the best professional resources to achieve commercial and strategic objectives, at the same time providing value to the company’s management.
Our senior team members and specialists have considerable expertise and experience in the resources sector, having managed the administration of some of Australia’s largest resources restructurings, asset sales and advisory assignments.
Our approach to assignments in the resources sector recognises that mining is at the high end of the risk spectrum, generally requiring an understanding of the components of mining investment analysis to determine optimal strategy.
Understanding the investment analysis and getting the strategic direction right means that stakeholders benefit through reduced costs, timely completion and expedited returns on investment or recovery.