Business case
Our client, a publicly traded company that owned two gold mine assets in West Africa, engaged us to provide an expert report following an application by the minority shareholders for relief, including the conversion of debentures into equity.
The purpose of our expert report was twofold:
1) To provide independent analysis of the evolution of the company’s financial situation, profitability and cash flow during the period relevant to the allegations in the petition for relief
2) To opine on the market financing terms in the mining sector on the African continent relative to the financing terms offered by the controlling shareholder regarding the debt instruments used.
We provided ongoing support to our client’s legal team on financial matters, including a thorough review of all relevant financial documentation. Our analysis established a clear link between the macroeconomic trends during the exploration period and their impact on cash inflows, as well as the characteristics and conditions of the related financing.
Our report addressed several key areas, including an analysis of the gold mine’s operating situation and its financing requirements. We provided a review of the economic, geopolitical and health context in the related African country, as well as an assessment of the company’s historical financial performance. We also examined the financing options available in the market and provided our opinion on the conditions proposed by the controlling shareholder.