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Three friends who were in Senior position of mining Co.decided to form their own mining operation to process Pure Nickel. They decided to raise equity through Aim listing and a loan of $100M. They will transport the Nickel Ore to another location where the procesing will take place using the acid-leach method. Their is a growing demand in China and India but they are also face with other alternative products which have the same use as Nickel and are cheaper. They incurred cost for equipments and other start off assets and also made provisions for environmental damages which they anticipate and are being confronted by environmentalist who believe that the mining operation will be bad for the environment.
The expensenses of the operation is in dollars but they desire to receive payment in pund Sterling.
Questions:

1 Identify the key Operational, Currency, Inflation and Economic Risks associated with Company
2 Assess those risks and indicate how they can be managed.

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Solution Summary

Three friends who were in Senior position of mining Co.decided to form their own mining operation to process Pure Nickel. They decided to raise equity through Aim listing and a loan of $100M. They will transport the Nickel Ore to another location where the procesing will take place using the acid-leach method. Their is a growing demand in China and India but they are also face with other alternative products which have the same use as Nickel and are cheaper. They incurred cost for equipments and other start off assets and also made provisions for environmental damages which they anticipate and are being confronted by environmentalist who believe that the mining operation will be bad for the environment.

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