Preserving Shareholder Value Through Asset Conservation

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Unstable global credit markets and diminished project finance options make it challenging for mining companies to acquire funding for ongoing exploration and development projects. During an economic downturn, asset conservation is emerging as a short-to medium-term strategic option to preserve shareholder value. Following an assessment of possible financing solutions, it may be necessary to consider the rapid curtailment of exploration and/or development activities. By conserving cash resources, your company will have a better chance to weather the current downturn. Other alternatives may also be considered, such as the sale of the business or strategic partnerships.

This fact sheet explores a variety of business issues related to asset conservation, explains how PwC can help as your independent financial advisor, and outlines matters to consider when implementing an asset conservation program.