MINE ACQUISITION DUE DILIGENCE

CLIENT

International Mining Client

OBJECTIVE

Xenco led a global search and evaluation of Copper and Copper-Gold mines as a key component of a client’s international investment strategy. The goal was to identify a mature asset with strong operational potential including where performance challenges were being experienced. Our objective was to provide a comprehensive assessment of risks, opportunities, and the mine’s capacity to generate sustained positive cash flow.

THE CHALLENGES

To make a sound investment, the client needed to navigate technical, operational, and strategic hurdles, ensuring that any acquisition aligned with their financial goals and long-term viability. The key challenges included:

• Ensuring the mine had the right geology, infrastructure, and production potential.
• Identifying an asset that fit with the client’s expertise and financial goals within a complex and competitive commodity market.
• Assessing the capital, skills, and execution strategy required to maximise an asset’s value.
• Evaluating regulatory, geopolitical, and operational risks associated with each potential acquisition.

APPROACH

To identify and validate the best investment opportunity, we deployed a comprehensive multi-disciplinary approach to ensure the best outcomes for the client:

OUR RESULT

Through technical expertise, commercial acumen, and a direct and honest evaluation of each opportunity, Xenco enabled the client to make a well-informed, high-value investment decision, minimising risk while maximising future profitability.

• Identified an optimal asset – a Copper-Gold mine with strong cash flow potential and operational feasibility, aligning with the client’s long-term investment strategy.
• Assessed and ruled out three unsuitable mines due to misalignment with strategic goals.
• Client successfully acquired the recommended asset.
• Our team of experts guided a high-value investment decision making process by combining technical insight and commercial strategy.
• We delivered a clear investment roadmap outlining risks, opportunities, and returns.

By ensuring a rigorous evaluation process, Xenco provided the client with the confidence and clarity to move forward with an asset that supports both immediate returns and long-term profitability.