Client Profile
A privately held international mining company with producing and development-stage assets in the United States, Zambia and Brazil experienced significant financial pressure following an aggressive period of international expansion. The company had invested heavily in mine development, exploration and processing infrastructure while simultaneously experiencing cost inflation, construction delays, working-capital constraints and weaker-than-expected production from several assets. The Board engaged our team to stabilize liquidity, improve operating performance, rationalize capital expenditures and develop a sustainable long-term capital structure while preserving the value of the company's international asset portfolio.
Key Challenges
- US$425 million of consolidated debt and project financing
- Significant near-term debt maturities
- Mine development costs substantially above original budgets
- Production below forecast at two operating properties
- Zambia operations affected by power availability and infrastructure constraints
- Brazil development project experiencing permitting and construction delays
- Substantial capital commitments across multiple jurisdictions
- Excessive corporate overhead and duplicated international functions
- Limited visibility into project-level cash requirements
- Liquidity projected to fall below minimum operating requirements within six months
- Lenders concerned about leverage and execution risk
Our Mandate
- Liquidity & Financial Stabilization
- Operational Restructuring
- Capital Allocation & Portfolio Optimization
- Stakeholder & Lender Management
Results
- Liquidity crisis successfully resolved
- No formal insolvency proceedings required
- US$88 million reduction in net debt
- EBITDA increased by approximately 109%
- Operating cash flow increased by more than US$40 million
- Production returned to above-budget levels
- US$65 million of capital expenditures reallocated toward higher-return projects
- Strategic capital secured for the Brazilian development project
- Company positioned for renewed growth and future strategic investment
Client Outcome
Following the restructuring, the company transitioned from a capital-constrained, highly leveraged growth strategy to a disciplined, cash-flow-focused operating model. The revised strategy prioritized producing assets, high-return development projects and financially sustainable exploration while establishing significantly stronger controls over international capital deployment. The successful restructuring restored lender confidence, strengthened the company's balance sheet and created a platform for additional strategic investment in its copper and critical-minerals portfolio.
RCP engagements are tailored to the facts, stakeholders and objectives of each situation.
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