Due diligence
Our due diligence services offer a focused and multi-disciplinary investigation that spans various depths of analysis into the technical disciplines integral to the mining value chain. This includes geology, mining, plant operations, on-mine and bulk infrastructure, ESG (environmental, social and governance), permitting, and financial performance.
From a mining perspective, a technical due diligence study is a focused and multi-disciplinary investigation that spans different depths of analysis into the technical disciplines that are part of the mining value chain.
The outcome is an assessment of the operation or project typically in the form of a report, which provides the assurance that a particular project or asset is capable of delivering the stated outcomes, or what must be put in place to deliver these outcomes. Due diligence can be a broad term and it is important to understand the type of due diligence and the required confidence in the estimate.
Accuracy level of investigation
We apply a matrix approach based on four levels of due diligence to match the client's requirements with the depth of review and resulting confidence in the estimate.
When considering a due diligence study, international reporting code compliance must be expressly stated and never be assumed, and noncompliance with associated risks must always be stated.
Our approach
The due diligence process relies firstly on the historic mine technical study data and historic production data; and then on the research and experience of the independent technical experts that form part of the due diligence team.
For early development projects, mines in business rescue or mines under care and maintenance and internally funded mines and projects that have not previously met the minimum threshold for public reporting processes, the mine data as basis for the due diligence could be insufficient and/or inappropriate. This significantly increases the due diligence level of effort (time and cost) for the same level of confidence and exposure to risk. Here, we work closely with our clients to select an approach balancing their requirements with the appropriate level of technical work required.