Due Diligence

Markets and Product Lines

Our due diligence services to the natural resources mining sector provides a suite of bespoke product lines focused on the requirements of companies (both private and public), individuals and the structured debt and equity capital markets. Supporting the increasing trend for enhanced scrutiny and risk management, SRK’s principal product lines include technical reports published for use in the:

  • Debt Capital Markets: As the appointed ‘Independent Engineer’ on behalf of the lead financial institution, representing the syndicate and the sponsor, SRK provides the following Project Finance related services:
    • Pre-financing technical due diligence and ‘Independent Engineer’s Reports’,
    • Environmental (Biophysical and Social) compliance assessments including Equator Principals, IFC Performance Standards and World Bank Guidelines,
    • Term sheet development including assistance in defining conditions precedent and conditions subsequent and Ore Reserve tail ratios and other technical-economic performance criteria,
    • Technical input to applications for Credit Committee approval,
    • Pre and post-financial close monitoring through construction completion, commissioning, and production ramp-up to name-plate capacity,
    • Technical certification for mechanical completion, production completion and cost completion,
    • Quarterly assessment services throughout the period of the loan facility; and
  •  Equity Capital Markets: As the appointed ‘Independent Competent Person’ on behalf of financial institutions and sponsors, to assist in the generation of regulatory documentation required by various international stock exchanges, SRK provides the following services:
    • Competent Persons’ Reports for inclusion in Prospectuses, Offering Memoranda, Offering Circulars and Private Placement Memoranda,
    • Technical Advisory in support of privatisation programmes, disposals and acquisitions including Information Memoranda and technical data room structuring and management,
    • Mineral Resource and Ore Reserve compliance opinions for inclusion in press releases and annual reports,
    • Mineral Asset Valuations for the entire suite of project development stages from exploration through feasibility study to operations.

Approach

Our structured due diligence approach is directed towards ensuring ‘appropriate investigations for the decisions at hand’ which provides for a multi-disciplinary team and approach to assess mineral assets at all stages of development. With over 100 technical staff located in the United Kingdom with direct experience for servicing the financial markets our geographic reach is further enhanced by access to the wider SRK Group’s consultant and associate network located in 38 offices on 6 continents. Our technical teams provide for discipline focused assessments to address the key areas of:

  • Geology;
  • infrastructure and capital projects;
  • mineral resources and ore reserves;
  • human resources;
  • mining engineering;
  • occupational health and safety;
  • geotechnical engineering;
  • operating and capital expenditures;
  • hydrogeology/hydrology;
  • engineering, procurement and construction management;
  • mineral/metallurgical processing;
  • environmental (social and bio-physical);
  • tailings/slimes deposition;
  • mineral economics.
  • refining and smelting;
 

Specialist input is also provided via our international associate network which also broadens our experience and global reach in this regard. Where requested we also undertake limited scope mandates where only specific disciplines are required to be covered by SRK or where we provide sub-contracted services to third parties.

Today’s globally integrated market economy requires that discretion and confidentiality is key. Accordingly through the SRK Group’s global network we are able to rapidly assess our confidentiality status as well as addressing conflict management issues.

Experience

Our recognition in the debt and equity capital market as a name brand independent consultant with experience in such commissions is exemplified by a combination of mandates which cover a wide geographic spread as well as representing the majority of spot traded and contract commodities. These mandates include:

  • An extensive portfolio of independent engineer’s reports prepared on behalf of syndicated project finance facilities in the debt capital markets specifically in respect of the European, Southern African, North American, Australasian and Asian financial centres;
  • Numerous technical reports published in support of: initial public offerings and secondary listings on the majority of international stock exchanges; as well as private placement memoranda and offering circulars for accredited investors and qualified institutional buyers;
  • Technical advisory services to facilitate privatisation programmes on behalf of national and local governments as well as international institutions such as the World Bank and the International Finance Corporation;
  • An established working relationship with:
    • private and public natural resource, commodity trading, downstream processing and vertically integrated companies operating in the mining and metals sectors,
    • premier financial institutions, reporting accountants and legal advisors in the majority of international financial centres,
    • national and international development financial institutions and export credit agencies;
  • A due diligence process which encompasses the full range of mandates from initial high level desk-top reviews based on public domain information to on-site inspection, validation/verification of technical and contractual documentation normally associated with Feasibility Studies completed to bankable standards; and
  • A thorough appreciation of reliance on technical information with respect to the financial decision making process for either debt or equity financing.
SRK Sweden