Mining & Metals: Energy, Industrial & Strategic – AWR Lloyd

Mining & Metals: Energy, Industrial & Strategic

AWR Lloyd works with clients in the coal, uranium, industrial minerals and strategic minerals and metals sectors on industry studies, M&A transactions, capital-raising assignments and strategic planning.

With accelerated growth in the solar, electric vehicles and battery sectors, a number of strategic minerals are likely to see rapid demand growth over the next two decades including lithium, rare earths, cobalt and graphite. AWR Lloyd has worked with a number of clients to evaluate investment and acquisition opportunities in these sectors.

Coal has been one of the firm’s core areas of industry expertise. AWR Lloyd has been one of the leading M&A and corporate strategy advisors to the Asia-Pacific coal sector for nearly two decades. Our work has been wide-ranging from valuation and strategic planning to major merger transactions and IPOs. AWR Lloyd has experience working on assignments relating to the coal sectors of Indonesia, Australia, China, Mongolia, India, Vietnam, South Africa, East Africa and the US.

The firm has worked for a few coal sector clients on a multi-year basis. For example, AWR Lloyd has been instrumental in the development and expansion of two smaller players into multi-billion dollar coal producers – one in Australia, acquired by a Chinese group for $3 billion – and one in Asia, with coal and power interests in Indonesia, Australia, China, Mongolia, Thailand and Laos. The work for these companies has included a mix of corporate finance strategy, transactions and investor relations work over many years.

AWR Lloyd provides analysis of the ownership structure of the coal, industrial minerals and strategic metals and minerals industries in each country, profiles of both the larger and smaller players, resources, reserves, coal grades, logistics and infrastructure analysis, capital cost and operating cost estimates, new projects, trade flows and customers. Through our knowledge of the power, steel and specialist metallurgical sectors we can also model long term demand scenarios for industrial and energy resources.

Where clients need long range price forecasts, AWR Lloyd provides long term demand scenario analysis and long-term CV-adjusted FOB and CIF cost curve analysis in the main areas of future supply. The marginal cost of production forms a core fundamental benchmark for long term pricing analysis but we also factor in the potential impact of speculative influences on prices and the impact of market sentiment. Finally, for thermal coal, we analyze the historical and future substitution relationships between coal and alternative sources of energy for power, in particular gas (and oil) and renewable energy.

In Indonesia, AWR Lloyd and its principals have been active in the coal sector for two decades. For example, one principal was strategic advisor to PT Bukit Asam and a number of other clients in Kalimantan in the 1990s. AWR Lloyd has advised several clients on various aspects of their Indonesian coal sector strategies in Indonesia since 2000.

We advised on the $2 billion IPO of an Indonesian coalmining company on the Indonesian Stock Exchange in 2007. We have advised a power group on a $200 million investment in a coalmine in Sumatra. We have also conducted a number of other studies for other clients, including the Indonesian Coal Mining Association.

In China, AWR Lloyd was the advisor to a $0.5 billion acquisition of a coal mine and coal project in Shanxi Province. We also advised a Korean group in relation to investment in a coalmine and related power project in Shanxi Province. We have advised a private equity fund on investment in coalmining companies projects in China and Mongolia.

In Australia, we advised a coalmining company on five M&A transactions, two of which were successfully completed. We also advised the same company on aspects of its strategy and investor relations. We have advised a Southeast Asian power group on coal investments and acquisitions in the country. We have also advised an ultra-clean coal technology company based in Australia.