The contract mining services and mining contracting industry has in the most part suffered decline over the past five years. Services include underground and surface mining, oil and gas extraction, specialist maintenance transport and rehabilitation services to downstream mining operations.
Industry operators in the mining support services industry depend heavily on capital investment in the mining division but limited demand and modest competition have caused many smaller businesses to exit the industry.
An increase in capital expenditure on mining in the 2019 year, in combination with a recovery in key commodity prices is expected to contribute to industry revenue growth in 2019 – 2020.
Demand from black coal mining is likely to also benefit the whole industry. Coal mining in Australia is typically open cut, which leaves mines vulnerable to adverse weather conditions and floods. The increased demand for black coal and the way it is extracted in Australia will assist industry growth in mining support services.
There are a number of factors that have a direct impact on the valuation of mining contracting and services businesses, such as:
- A diversified service offering;
- Quality systems, procedures and protocols in place which are regularly reviewed;
- Having a history of strong compliance to Government regulations;
- Proven ability to compete on tenders, and;
- Effective implementation and use of latest technology and techniques.
Expert Guide: Sale, Merger, Acquisition and Valuation of Mining Contracting and Services Businesses
Based on our significant experience in working with mining contracting and services businesses, Quinn M&A has developed an Expert Guide on the Sale, Merger, Acquisition and Valuation of Mining Contracting and Services Businesses. This guide is an invaluable resource, allowing mining businesses to understand the current state of their industry, how mining contracting and services businesses are valued and what factors need to be considered when selling a mining contracting and services business.
Our Experience and Expertise
At Quinn M&A, we have significant experience in advising on sales, mergers, acquisitions and valuations within the mining industry. Our advisors understand the industry, are acutely aware of the value drivers for the mining industry and have a track record of negotiating premium sale outcomes for shareholders of mining contracting and services companies.
Shareholders of mining contracting and services companies can trust Quinn M&A to provide expert advice in a range of areas, including:
- Business, company and shareholding valuations for mining businesses;
- Advice to assist with the acquisition of mining businesses;
- Due diligence advice for mining acquisitions or sales;
- Full brokerage service for mining businesses;
- Specialist taxation advice, and;
- Legal advice.
Clients and advisors who require assistance with undertaking the sale, merger, acquisition or valuation of mining contracting and services companies are encouraged to call us on 1300 784 667 to schedule a complimentary consultation with one of our Directors.