Case study 1:
Introduction
This discussion and analysis around Antipodes Mineral Resources company (AMR). This report will associate with the possible types of investment projects, the working activities of an aspiring position in a CFO office, analysing the effect of Stock exchange market on the goal of the company and will lead to address the accountabilities apart from the responsibilities towards the firm’s owners. This will also outline potential project and what the financial manager should prepare for investment.
Purpose
This report is intended to test the understanding of basic financial concepts and applying it to AMR Company. The main objective why investors would like to invest to each company’s project is gain profit. They
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The main fund for future potential project based on drilling at the WKP Gold Project, a huge amount of mining resource found in ten km from Newmont Mining’s Waihi gold mines that also estimated daily gold mining process. Previously, it has been acknowledged as of joint venture with current owner of land, however, renegotiation stated to restructure on shareholders to change 51% of total shares will owned by AMR. Actual potential market is estimated over 260 thousand ounces of gold that inferred by NI43-101 compliant, high grade mineralized vein structure and WKP has been drilled around 15 wholes already. The company of AMR is reaching the decision that raise the fund to achieve potential development and extension of workload, especially, potential of underground mining including with technical improvement that consists with drilling, environmental evaluation and metallurgical inspection.
2.2. You will be working in the CFO’s office if you obtain this job. What activities do you expect are undertaken in this office?
Working in the CFO’s office as a Financial Analyst will be responsible for:
Making and managing principal credit and equity investments.
Researching, analysing data and performing due diligence in evaluating potential mining property investments and specialty
EEC calculated the amount of time involved the anticipation of its cost ($3 million). The timeline in recovering their cost of investment ($2 million) initially for the foundation of this investment any profit made in the future of this investment will be justified as a profit for the company. If EEC can anticipate a fast return on its investment it is a profitable wise decision in making the investment financial, it is considered to be an easier way of formulating investments financially. On the basis of one year all cash flows is added together equal to the sum of $2 million originally invested, then it is divided by the annual cash flow of $500,000. The calculation of the payback period would equal four years. After this time frame any financial proceeds will be considered profitable for the company. I conclude that the timeframe is adequate in comparison of the investment in this worthwhile investment financial venture for the company.
• Valuation of the company—application of sophisticated quantitative valuation models, IRR, net present value and forecast of future cash flows.
You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.
Mining has strong increase in revenues and investment in the mining sector and for other industries aligned to mining and resources. Modelling undertaken for this document estimates that the mining increase has on average delivered 0.62 per cent to whole funding
You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.
To create a competitive advantage, a mine has to properly manage its exposure to gold price fluctuations. This is not an easy thing to do since there are so many factors to consider: when, how much, and how to hedge the gold production. Firms in this industry differentiate themselves based on the risk management strategies they implement. Furthermore, mines should also be able to minimize the cost of gold production along with making large sunk costs. Operating in
Financial data from past periods of a company, provides a perspective for future outcomes. Investors give proper attention to different ratios. In this report I am analyzing the financial position and financial performance of AT & T, a US. Telecommunication Company. The objective and conclusion of this analysis will be, if is either good or not to invest in the company.
One of the target areas especially in East Asia is the ongoing mining projects that provide a fertile ground for Caterpillar Inc. to establish itself by marketing its equipment. In Pakistan for example, there are 23 mining projects
The company embraces innovation to increase its financial performance and create new opprotunities for profitable growth. It produces a statemnet of financial positions which provides investors and analysts with information regarding the company’s resources and assets as well as the sources of its capital. It also shows the future earnings capacity and an indication of cash flows that may come from inventories and receivables. While catering to the needs of its customers, the company also strives to ensure the satisfaction of its investors. Maintaining attractive profits also serves as an attraction for more investors. Making its financial statemets public is one of the ways to attract potential investors. This is because the investors will be able to know if his/ her money will be well invested or whether it is worth taking the risk. The future projections of a business is one of the factors that potential investors consider before making an investment (Rowley, 2003). The investor also needs to consider his own financial situation and assess their risk tolerance levels. The mode of operation of the business should also be known in order to determine if the company observes organisational ethics in its operations. A company that is subject to public scandals related to its poor running, for example, harming the environment, is not a suitable target for investment.The company’s goals and ojectives should be in line with those of the potential investor to ensure full cooperation thereby achieving the set goals. The qualifications and skills of the people put in charge of the business should also be made public. The potential investor will therefore be able to know how qualified the workforce is. This will prevent the investor from placing his money in the hands of inexperienced and underqualified
The purpose of the response is advise the investor about the companies he is considering to invest in. The investor wishes to learn more about the profitability, liquidity and asset efficiency of the said companies along with a recommendation of which company would be most beneficial to invest in.
Exploration drilling is the first step in determining the position of a mine and whether it is a viable business opportunity. Drilling determines the exact positions of ore bodies suitable for mining. This also achieves samples which are tested to find out the quality of the ore body. Drilling is performed within a set area to find the size of the ore body.
Decision Making Area 3:Investment Decisions * Table of Articles * Summary of Articles * Observations * Conclusion
1. Is the capital investment proposal described in Exhibit 3 and attractive one for Quality Metal Service Center?
Thus the purpose of this report is to analyse how AngloGold Ashanti can successfully establish its mining business in Chile with minimum risk.
Due to complications in gaining access to risk capital and lack of expertise wanted for resource exploration and production, most developing nations with oil and gas reserves grant development right to foreign companies, which have adequate expertise, technology and capital to fund the project including the capabilities to manage