New Earth Mining Inc Case Solution

Posted by John Smith on April 5th, 2018

New Earth Mining is among the biggest producers of gold and silver within the U.S. As the firm works mines mainly within the U.S. and Canada, it's also made substantial opportunities in gold exploration projects around Australia and Chile. New Earth continues to be very effective and it has a lot of money on the total amount sheet, an easy debt structure, along with a reasonable leverage ratio without any chance of liquidity. Having a strong budget, the firm views reducing its reliance on gold and silver by diversifying into base metals along with other minerals. A good investment chance for mining iron ore in Nigeria looks promising but nonetheless carries substantial risk. A bad risk of civil war in neighboring nations together with strong fears the South African government will nationalize mining procedures mix to produce an unsound political atmosphere. The tentative financing package is complex and produces challenges for identifying something for that project. Students must develop a quantitative analysis of four plans with various valuation techniques prior to making your final recommendation.