Golden Dragon Capital assists its clients with Asset Divestments. Divesting non-core assets is a key factor in upholding responsible capital management for junior resource companies. By making the sale of an asset for financial, legal or personal reasons. Asset Divestments can assist in raising capital or to consolidate the business to focus on its core assets. Separating core assets from the non-core has become a vital way for junior resource companies to raise capital and re-position themselves to ensure that they are in line with strategic goals and corporate objectives.
Golden Dragon Capital corporate advisory business has been built on conducting asset divestment and acquisition programs for a wide range of mining clients. Since our inception, we have participated in several project transactions where we oversaw client’s divestment non-core assets, our divestment services include:
- Project Evaluation
- Preparation of promotional material in Simplified Chinese
- Garner interest from capable investors
- Reviewing and represent the client on their preferred option
As commodity prices fluctuate daily, a mining company must always be vigilant in its understanding of the economic conditions of its underlying commodity value. Such examples include the iron ore and nickel market where they are heavily correlated to the stainless-steel industry. A good case example is result of the modernisation and urbanisation of the People’s Republic of China which caused a shortage in iron ore, thereby spiking the price for several years, followed by a downturn.
A one commodity mining company may need to re-adjust its focus if the market is not receptive to pursuing an oversupplied market. Whereas a mining company with a diversified asset base could divest its non-core assets to focus on more value driven projects.
Golden Dragon Capital also provides advisory services for mining companies seeking to acquire new resource projects. Using our Golden Dragon Capital Commodity and Market Research network, we can provide strategic advice using a range of valuation practices. For more information about our services please click here