MacCormick was mandated to audit a mine project against the equator bank principals and other social indicators on behalf of a debt financier for social performance activity, identification of risks and to make recommendations for conditions of financing. Context Due diligence requires research and analysis of a company or organization in preparation for a business transaction (as a corporate merger or purchase of securities). Whether it’s a major mining company acquiring or merging with another or smaller mine company, or a financial institution or private equity fund looking to finance a project, best practice will denote review, benchmarking and gap analysis to ensure continuous measurable improvements and accountability.

Quality

MacCormick benchmarked the equator bank principals (EP) in addition to other social performance indicators not currently included in the EP to determine exposure to certain risks and gaps in operational risk of the mine project.

Quantity

The comprehensive report identified SWOT and Gap analysis and made recommendations to inform the investment decision.

Time

This review was conducted over a 4 week timeframe. Two weeks in the field and another two weeks of reporting.

Resources

MacCormick’s expert audit team conducted the full review and prepared the report in accordance with the framework.

Outcome

MacCormick’s assessment assisted the lender in making an informed decision about their investment. Additional costs associated with the development of the mine were identified in order to mitigate certain exposed risks. Strategies were recommended on how to best address some of the issues and implementation of these strategies was mandated as a condition of the financing. MacCormick offered training and review services to manage the process through its adoption.