Managing financial risk in mining
By
Published: Friday, 27 May 2011
ABC’s story is a mining success intertwined with a cautionary tale of financial risk management, and the benefits and dangers of selling forward future production. Jeff Loehr demonstrates the importance of lessons learned on managing such financial risk
ABC Minerals International Ltd is a fictitious mining company,
but the following account of the challenges it faced with an
expansion project is based on a real case that impacted a major
mining concern.
ABC began life as an open cast miner with a long history of
success....