Insight Valuations (Australasia)

The (large) rotary platform blast hole drill rig market is dominated by Epiroc, Sandvik and Caterpillar with both Epiroc and Sandvik having acquired a few previously known brands such as Atlas Copco, Ingersoll Rand and Tamrock to narrow the supplier market. The main users of larger blast hole drill rigs are miners and contract miners predominantly in the larger pit mines typical of coal and iron ore. Once a drill rig is set up for a particular commodity it is unlikely to be transferred to another due to conversion cost. Further limiting a transfer is transportation cost from East coast coal to West coast iron ore. Thus, there is a distinct market on each coast for these assets. Larger dill rigs are heavy wearing with crack management required from early in their life however they are long living with some components replaced up to 4 times over this life. A drill rigs value depreciates rapidly to a core underlying value with further value heavily influenced by component hours and alignment of future capital expenditure. A complete rebirth is not typically undertaken for this asset due to the expense, rather a renewal as required approach, with electricals and hydraulic wear triggering a more comprehensive expenditure. Miners may use OEMs' to undertake renewal rather than replace with new but it is dependent on cost, if not they will sell to contractors. Sales of used rigs occur on a needs basis i.e. contract in hand and to a contractor who can effectively manage the refurbishment cost effectively. Some smaller start up miners may also enter this market when commodity prices are buoyant. Used sale lead times are typically long, and a fleet disposal would be challenging in a liquidation event. Functional or technical obsolescence is a factor in younger asset values but less so in older renewed units where mechanical functionality and ease of maintenance are preferred. The assets end of life will result in scrapping at the mine site to limit costs of transport or the sale of components in overseas market. Reach out to Ben Roden for a deeper understanding of market conditions. #miningindustry #mining #miningequipment #heavyequipment #miningaustralia 

Telling the asset story by providing asset-based valuations and diligence across complex infrastructure and plant & equipment. 

In the field image capturing port and forestry aligned logistics and infrastructure…deep sector experience across capital intensive industries allows us to test actual free cash flow and valuation scenarios. #forestry #valuations #agriculture #privatedebt #privatecapital 

In the demanding world of mining and in the midst of refinancing, understanding the value of the mining equipment is essential…arguably just as important as operational reliability and efficiency. This case study explains how we supported the refinancing journey for a mining equipment hire business. Ben Roden Greg Hardiman

Our asset valuations, maintenance OPEX and CAPEX diligence supports acquisitions, divestitures and changes in control or ownership. This case study highlights the benefits of diligence to both the sell side and discerning buyers.   

We have recent form in the forestry aligned logistics sector throughout AUS & NZ…What makes us different is our deep understanding of industry fundaments and physical operations. We use our expertise and unique in-depth methodology to undertake valuations to help clients meet strategic goals.

Frequent updates to inventory valuations and liquidity projections are key to managing risk, as the over-supply and shortages of different assets, across inventory classes, is creating challenges in managing working capital. Read the case study to find out how our client sourced working capital with insightful valuation advice. 

Retail is one of the most dynamic aspects of the economy, whether ballet attire or luxury consumer goods, frequent updates to inventory valuations optimises outcomes when sourcing capital. 

Signing the deal to buy or sell a company can be the most memorable moment for those involved in an M&A transaction. However, it is only one of the stages within the M&A lifecycle, one additional key step includes the 'purchase price allocation’ or PPA. This case study https://t.ly/KYqQ_ takes a closer look at a valuation that mapped all critical inputs to support a valuation opinion across a mining fleet. #mining #mergersandacquisitions

In the field with hands-on engagement assessing logistics and port infrastructure providing practical insights from the team with extensive and broad exposure to business, operations and assets.