-
Business consulting
Our business consulting services can help you improve your operational performance and productivity,…
-
Business risk services
We can help you identify, understand and manage potential risks to safeguard your business and…
-
Data analytics center
Unlock the power of data with our expert Data Analytics team. We are a dedicated group of professionals…
-
Asset management
Grant Thornton’s profound experience and deep knowledge of asset management (AM) systems…
-
Human capital advisory
Grant Thornton Armenia's human capital advisory services are designed to deliver the results you…
-
Sustainability and ESG advisory
Embark on a transformative journey with our comprehensive Sustainability and ESG services,…
-
Recovery & reorganisation
We provide a wide range of services to recovery and reorganisation professionals, companies and their…
-
Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome…
-
Cybersecurity
Grant Thornton will assist you with raising the level of your protection, offering services in the area of…
-
IFRS
At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting.
-
Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
-
Global audit technology
We apply our global audit methodology through an integrated set of software tools known as the Voyager suite.

-
Legal advisory
Legal advisory involves a wide spectrum of corporate legal consultancy ranging from…
-
Business process solutions
Our business process solutions team provides a range of services to support clients of all sizes, from…
-
Tax advisory
We advise our clients on all aspects of corporate tax strategy development and tax planning, tax…
-
Energy & environment
Energy and resources markets worldwide are undergoing major changes. With growing energy…
-
Oil & gas
Oil & gas
-
Mining
Rising operating costs, challenging capital markets and falling commodity prices are putting…
-
Private equity
We bring together international teams from corporate finance, restructuring and turnaround, taxation and assurance services that provide bespoke solutions –…
-
Asset management
Grant Thornton’s profound experience and deep knowledge of asset management (AM) systems and registers development is based on successful…

Linda Beal: Mining Shake-Up Sparks M&A Opportunities
As I and Grant Thornton colleagues head off to the Investing in African Mining Conference 'Indaba 2015' in Cape Town this week, thoughts turn to the health of the South African and wider regional mining sector. It is certainly a far cry from the bedrock of the economy that it had been in decades gone by. Hardly a week goes by without an announcement from both mining majors and juniors on changes to assets, strategies and investments. However, I see a healthier mid-term future.
Even a casual observer of the South African mining sector will have noted, the extreme upheaval which the industry has undergone over the past few years. A series of factors have contributed to this, not least of which have been industrial action, oversupply of commodities and declining market prices.
Corporate reshuffling and realignment has accelerated year on year, as can be seen by announcements from the likes of AngloGold Ashanti, Goldfields, Anglo Platinum and Glencore. Activity among the mining juniors across the full spectrum of commodities is equally strong albeit of a smaller magnitude.
However, as we see on the ground, and highlighted in our recent 'Gathering Momentum – the resurgence of M&A in global mining”, a near perfect alignment of factors globally is heralding a new era in mining mergers and acquisitions (M&A). By the middle of 2014, 1,132 deals valued at more than US$106-billion have been concluded, surpassing the US$85 billion registered (from over almost 2,000 deals) the previous year.
The report reveals that 10% of junior miners globally anticipate entering administration, and a quarter of major mining companies expect challenges with financial covenants. This situation is expected to lead to distressed assets and low valuations. A third of executives from both junior and major mining companies are considering acquisitions, while an almost equal number are looking to sell assets. Falling commodity prices are a key driver for M&A activity, as companies aim to consolidate assets to achieve scale, lower production costs, enhance effectiveness, and reduce overheads.
The survey responses from South African mining companies are broadly in line with the global results, although there are some material differences with nearly 39% of local companies saying they are quite likely to acquire a unit or division of another miner, compared with 16% globally. On the other side of the coin, 12% of local respondents say they are highly likely to be sold or taken over versus the 6% global average.
One of the factors that is expected to drive global M&A activity is the estimated US$8 billion that global private equity firms have raised for which they are seeking investment targets.
Despite the turmoil in the local industry, African mineral riches remain attractive to miners and investors who are able to execute strategies that aim to minimise costs and maximise the long-term returns these assets will invariably deliver. We continue to see keen interest from Chinese clients to acquire mining assets in Africa, spurred on by the low valuations.
At Indaba I look forward to hearing more and discussing how mining executives can position their businesses as attractive for buyers or sellers, developing strategies to access funding by exploring alternative sources such as earn-in and funded related joint venture arrangements as well as the traditional bond market. Key to this will be the need to drive cost efficiencies and productivity improvements to enhance the likelihood of attracting funding or optimal valuations. The commodity supercycle may have ended but the mining industry can still be optimistic for future growth.
Global events
Grant Thornton is pleased to support mining events worldwide.