View the Resources insight into the current economic climate »
What’s happening?
Whilst many initially thought the resources sector would be largely immune from the impact of the credit crunch, it now appears that this is not the case. The credit crunch has prompted the postponement of some capital raisings in the resource sector, particularly for some of the middle to smaller size companies. In light of the tougher environment for raising capital, some companies are considering joint venture opportunities with international players, or the considering the sale of non-core assets.
The economic situation has put the spotlight on cost management, as well as organisational efficiency and effectiveness, including in the area of contract governance. At the same time, the volatile Australian currency is prompting many businesses in the resources sector to re-evaluate their hedging strategies, all the while considering how to maintain margins when commodity prices are falling.
How we can help
- Project viability assessments, risk management and governance programs.
- Debt funding and liquidity management strategy
- Connection with Chinese Inbound investors.
- Tax advice and restructuring.
- Operational effectiveness and cost simplification including contract governance.
- Equity raisings and IPOs.
- Due diligence and M&A services.
Questions for the resources sector
- What hedging strategies should be implemented?
- Which projects are still viable?
- What are my funding options?
PwC understands the issues your business is facing and the questions you need to ask in the current business environment. Contact us today to find out how we can help your business prosper.
PricewaterhouseCoopers is the leading provider of professional services to the resources sector and has been advising energy, utilities and mining companies for over 100 years.
Our global practice ensures we appreciate the international trends impacting on the resources sector, while our Australian team has the local industry knowledge to truly understand the environment in which Australian companies do business.
PwC’s Resources Group services metals and mining and oil and gas clients operating in highly competitive, rapidly changing markets and is ideally placed to help Australian energy and utilities companies take advantage of global industry developments.
How PwC can help you
Our professionals match industry experience with proven business solutions to resources sector issues like profitability, environmental matters, shareholder value and the changing regulatory environment.
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