02 Sep 2013

Mining trends emerging from Africa Down Under 2013

With Africa Down Under 2013 wrapping up, Mark Paganin shares his insights from this year's conference and what he sees as the key developing trends in the African mining sector.

Mining trends emerging from Africa Down Under 2013
Mark Paganin, Partner, Corporate Advisory / M&A

My observations of Africa Down Under Conference this year, 2013, I'll give them now but just on the back of this context. I've been at the conference for the last three or four years, the market sentiment as we all know is subdued, a more discerning investor base now, but the ironical part about all this is that the Australian companies in Africa are a lot more advanced than what they've ever been; quality projects, quality management and value creating. So with the focus that a lot of these executives have had and management and expertise that they've developed, not only from within their own corporate groups, but from the sharing of information experienced with other Australian corporates in Africa. And it's part of human nature I think that when times are a bit challenging there's a lot more sharing and frankness about conversations and sharing of that information, for the benefit of each company; whilst maintaining confidentiality of course. I see that these companies are very well placed that as when the equity capital markets and debt markets improve having said that I've heard some good stories at this conference about debt provision which is encouraging for the right projects, but as they recover I think you'll find that they have been quality assets, better value and a more experienced management, translating into a diminishing, of course not eliminating risks associated with these projects. That's what's coming out of this conference and I think it's been more buoyant than what I thought it would be.

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Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.