Core Consultants

We consider each clients' unique requirements

Core's Consultancy Services

Core Consultants' focus is on providing personal customised commodity research and consultancy according to each client's specific requirements, as well as counselling on market access opportunities and strategies, particularly in Africa.

Strategy


Our services include:

Benchmarking

Benchmarking is an effective way to gauge a company’s competitiveness in a particular market. It assists a company in improving its performance by identifying and applying best demonstrated practices to its areas of operation. Benchmarking can be considered from the company’s operating costs, financial competitiveness or market dynamics in terms of regional or global market share analysis. Investors frequently use this tool to compare an array of possible investment options. Producers use benchmarking to understand their particular strengths and shortcomings. Understanding how your business compares with your direct competitors helps guide management decisions as well as company strategy.

Due Diligence

A due diligence is an independent audit of a potential mining investment and serves to confirm the material facts of the project. The main objective is to assist our clients in determining the assets’ true value as well as highlight any operational or economic risks to the project.

Market Entry Reports

In today’s world, most processes are technically feasible, though not everything is economically feasible. Often a particular deposit or project may lend itself to producing a variety of products. A prospective iron ore producer may for instance have the choice to produce ore or concentrates or pellets or sinter feed. A prospective lithium producer may have the option of producing technical grade lithium concentrates, lithium oxide, technical grade lithium carbonate or battery grade lithium carbonate. Often the best choice is not always the most beneficiated product nor is it necessarily a single product. A market study therefore seeks to understand the current global economic climate and consider how our clients can best position themselves so as to take advantage of the economic trends. This study often requires costing various freight options, a basic engineering to establish the costs of various product options, looking at whether the client could secure an offtake agreement, availability of finance and an outlook for demand/supply balance for each prospective product/process option.

Market Forecast Reports

A market forecast study is a long term economic analysis of a particular market with the goal of providing a price forecast range of a particular commodity market over the medium and long term. Core Consultants studies supply and demand data including end-user markets, new and planned project data, trade data and price volatility graphs in order to make a prediction of a commodity’s long term prospects. Our clients use these types of reports for IPO listing documents, informing analysts and portfolio managers, inclusion in prefeasibility and feasibility studies and to inform their own internal business development teams.

Shortlisting Potential Acquisitions Or Partners

Many prospective producers come to us with the need to either acquire a deposit or they may already own a deposit or mining concession and need a partner for financial reasons or to assist them in realising the project’s value. In this instance Core Consultants will conduct a review of the concession or producers and shortlist possible partners on behalf of our client.

Sourcing Potential Offtake Or Marketing Agreements

Many producers have the in-house technical capabilities to run the mine, but do not necessarily have access to end-user market participants. Core Consultants will therefore shortlist potential off-takers or marketing agreements with third party traders on behalf of our clients.

Supply Chain Risk

In order for a mine to deliver a final product, it involves inputs from a number of raw materials. Should any raw material not be available, it could result in a force majeure. Other supply chain risks could be the provenance of the raw materials used. The issue of conflict minerals is becoming increasingly concerning for OEM’s which may not use or procure a raw input directly, but rather through contracts with battery or magnet suppliers. However not having an understanding of where these materials originate, could have dire consequences for the OEM Company. As such Core Consultants analyses our clients’ entire supply chain and ensures that there is sufficient quantities of a raw material in order that the mine can continue operating smoothly. Similarly in the case of an OEM group, Core Consultants would conduct a due diligence in order to ensure that the raw material supplier is a socially responsible source.

Price Forecasting

Price forecasts may be short term, (1-3 months), medium term (1-5 years) or long term (10-20 years) depending on the need. Our clients use our forecasts as inputs into NPV project calculations, prefeasibility or feasibility studies or as part of determining the overall company strategy.

Financial


Our services include:

Cross Border Transactions

Companies are becoming more global and working across multiple jurisdictions has become the norm. It is not uncommon to have a company headquartered in Australia, the mine in Africa and the investors in Europe. This creates regulatory issues, additional company risk and presents issues with respect to forex flows.

Core Consultants, via its Core Africa division, offers an advisory service that assists clients with their cross border transactions across Africa and globally with a strong regulatory focus to ensure compliance at all times.

Independent Price Estimates

Core Consultants produces independent assessments of commodity prices. Our prices are trusted by the industry to provide and independent reference as a basis to settle contracts with counterparties, track trends, value inventories, uncover issues of transfer pricing, evaluate projects, or opportunities and understand the market dynamics.
If you would like to contribute to Core Consultants’ pricing or have comments on the prices of specific markets, please contact Lara Smith, prices@coreconsultants.org

Prefeasibility And Feasibility Studies

Core Consultants has unique relationships with major engineering and EPCM firms and in many cases, is able to carry out a pre-feasibility and feasibility study, which is then reviewed to bring the study up to JORC/NI 43-101 standards. This saves our clients both time and considerable expense.
Core Consultants also partners with global engineering firms on prefeasibility and feasibility studies, offering support for primarily the economic, financial and risk evaluation sections.
Prefeasibility studies are designed to select the base case for developing a project. This includes potential mine access points, process methods, assess internal and external risks and establish whether there is a business case for the product.
The second stage is a feasibility study and is intended to evaluate whether the project is possibly from a technical, economic and financial standpoint.

Valuations

An independent valuation Is critical to attracting prospective investors and ultimately completing the transaction. An independent valuation helps create transparency to prospective buyers and present and unbiased and credible opinion that provides a measure of comfort with the listing prices.

In general, our clients use Core Consultants’ independent valuations of mineral properties for the following reasons:

  • Mergers and acquisition transactions, including mineral asset disposals
  • Fair and reasonable opinions,
  • Litigation
  • Security considerations for debt provisions by a financier,
  • Expropriation considerations
  • Insurance claims
  • Accounting purposes
  • New listings and equity raising including rights offers or private placements

Operational


Our services include:

Pre-Development Of Process Flow Diagram Options

Core Consultants’ assists clients during the appraisal phase of the project. During this phase, a series of process alternatives is developed and further assessment of the process value, risk and uncertainty is conducted. Some examples may include alternatives such as batch versus continuous processing, use of different types of separation techniques (extraction versus distillation, pressure filtration versus a centrifuge), etc. The most promising development concepts progress forward to the selection phase and may be tested by a third party. Using Core Consultants’ for the pre-development of basic flow diagrams and then choosing only the most viable process to be reviewed and tested, instead of leaving this up to a multinational EPCM, often saves the client considerable expense.

Assessment Of Relevant Capex And Opex

Part of a project’s assessment is an estimation of the capital and operating costs. Clients use these independent estimates as inputs into valuation models, as part of the pre-feasibility and feasibility studies, to present to an investor or financial institution, more accurately forecast the long term price of a commodity or to benchmark their project against their competitors.

Assistance With Tendering Process And EPCM

It is often challenging to understand the requirements of a project and compare one EPCM proposal from another. Core Consultants undertakes a thorough assessment of the project and assists their client with the selection of the correct service providers including EPCM’s and contractors that will prove the best value to the client.

Our Approach


We understand that in providing consultancy services we are essentially offering an intangible service and therefore honesty and integrity, transparency and reliability is of paramount importance to the Core Consultants team. We work hard to deliver client value and ensure that trust continues by adopting the following principles in all our projects:

  • 1We only accept assignments where we have knowledge and expertise
  • 2We ensure we have the most recent data available and the necessary information to assist our clients in their decision making process.
  • 3Rigour and intuition are combined in a fluid and continuous process that brings structure to our valuations.
  • 4Most strategies are technically feasible, few are economically feasible. Therefore often it is the economics which drive the technology or processing method. We work in collaboration with engineers and geologists in order to find an optimal solution for our clients. We have proven that this multi-disciplined approach has ensured that our clients have made a considered decision which resulted in their increased profitability.
  • 5Strong communication with the client is vital. Our team first strives to fully understand the goals and objectives of the commission. In this way we come to understand our clients' real objectives as well as any challenges that they may be facing and are thus able to structure our proposal and deliver our report accordingly. Core Consultants will never take on a project nor push a client into commissioning work which will not be to the client's benefit.
  • 6We always maintain our independence, and are not afraid to go against consensus. Our opinions are therefore based on sound data rather than rumours or hearsay.
  • 7We promptly respond to all our clients' requests and provide realistic schedules for our projects. Since the company's inception in 2009, we have completed over a sixty projects, all of which were high quality work, delivered timeously.
  • 8Over 60% of our projects come from returning clients whilst over 80% of our clients come to hear of us via word of mouth and our high standing in the market. Reputation is of paramount importance to us and we regularly seek feedback with the objective of constantly striving to develop our expertise and hence deliver an even better service to our clients.

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