Due Diligence

Our clients are private entities and international financing institutions.  We   provide advice in the form of business and technical reviews to identify potential risks associated with the asset to be acquired.    We identify and assess elements which could affect the future operation of a processing plant or mine from a technical, environmental, economic, and social viewpoint.  The Scope of a Due Diligence Study covers the following:

    • Analysis of the Company ownership; business activities including: financial data, earnings, share price, holdings, growth and general business dealings.
    • Evaluation of the market, capacities, energy usage and fuel sources, logistics, products and services; involvement with local communities, culture and values, commitment to social responsibilities and sustainable development, waste management practices, environmental footprint and concerns, environmental and social impacts; current or future potential negative issues.

Our due diligence covers geologic resources and mining operations. It begins with a Desktop Analysis, followed by fieldwork where an assessment is made of resources and reserves, mineability, equipment selection, productivity, CapEx and OpEx, the operational organization (team & organization); environmental, safety and security; audit of process systems and equipment.

The Scope of a Technical Mining Due Diligence Study, or Coal Mine Due Diligence Study, will also include the different aspects related to the property such as the geology, hydrogeological, geotechnical, surface terrain and how these physical characteristics impact the reserves, mining plan, mining operations, infrastructure, logistics, environmental issues, safety, etc.

PEC Consulting’s specialized Consultants are involved in the due diligence process starting at project inception and are exceptionally qualified to prepare and deliver a comprehensive Report. The Report will provide company benchmarking against similar operations, an economic analysis, and management review.

Our Mining and Process Consultants are highly experienced professionals with former operational and technical backgrounds working for world class mining organizations.  They have conducted technical due diligence reviews, developed mine and mine access layouts, evaluated and selected mining plans, mining equipment, and provided other mine support to our clients.

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Mineral Exploration: Prospectivity

The first step in exploring for any mineral resource is to determine the area where the exploration will take place. The selection of the best area will increase the probability of finding a deposit. Mineral prospectivity is a predictive tool used in choosing the location for the exploration efforts.

Economic Evaluation of Projects

The most common way to assess the economics of a project is the discounted net present value (NPV) of cash flows. Before budgeting a new project, a company must assess the overall level of project risk relative to normal business operations. Higher-risk projects require a larger discount rate than the company’s historical weighted average cost of capital (WACC) and vice-versa for lower risk investments.

Explore more of our articles and research on industrial minerals and other topics of interest.