Mining Financing Mining financing has changed dramatically over the past few years but mining capital is still available in substantial quantities if a client has a good project and they are committed to completing the funding process. A common mistake many mine owners make is prejudging what is possible and not investigating all types of financing. There have been many mining projects financed from new sources of capital that did not even exist before 2015.
Types of Projects We will consider all types of mining projects but most clients have the following types of ventures:
The Current State of Mine Financing Most traditional mining lenders are, for all intents and purposes, out of the business right now. Equity capital is also harder to source but it can still be done if the project is exceptional. We are not out of the funding business; we want good projects even in these hard times. If you have a good project and are willing to follow the rules you can get funded.
Why We Are Unique Unlike banks, factoring companies and traditional hard asset lenders, we are active in specialised areas of corporate finance that lend themselves well to mining financing. These specialized types of mining financing also have two advantages over traditional funders First, strong mining projects are actually being funded instead of shunted to the side “until things improve”. And second, the terms of the fundings are attractive even when other forms of funding are demanding terms that would never be considered in normal times.
Alternative Capital Financing In some situations, a new mining client may request funding in a program we normally offer only to our existing clients. The strength of the client's project is a major factor in determining if this option is available. The funding is non-recourse and in most situations repayment may be made before maturity. Please click here for more information about alternative capital financing.
Energy Financing We completed our first energy financing in 1978 and over the past 40 years we have helped our clients during the good times and through the hard times. We understand what it takes to keep going when energy prices have fallen and the industry is faced with a problem raising enough capital.
We are now in the down segment of the energy cycle and everyone is wondering if we have seen the bottom. It is our opinion that weak commodity prices, additional Iranian capacity coming on-stream, bulging inventories, high debt loads and a softening world economy are factors that will be with us for a while. The wisest course of action now is to consider different financing methods that are better suited for today's economic environment.
If you are thinking of refinancing, divesting assets or acquiring energy assets we may be able to provide financing for your transaction with terms far better than what you are currently expecting in today's challenging times. Show us your project and we will tell you what is possible.
Types of Projects We consider projects in the following energy sectors:
Oil and Natural Gas Exploration & Production
Oil Field Services
Alternative Capital Financing In some situations, a new energy client may request funding in a program normally offered only to existing clients. The strength of the client’s project and its management team are major factors in determining if this option is available. The funding is non-recourse and in most situations repayment may be made before maturity. Please click here for more information on alternative capital financing.