Due Diligence Or Short Shrift: The Depth Of Commercial Feasibility In Acquisitions

The subject is "Mergers, Acquisitions and Divestitures in Industrial Minerals, but my remarks could also be applied to new product development, resource development and other new business development activities. At the kernel of the subject is due diligence in major decision-making, that is, where major money amounts and a large corporate commitment are at stake. The "due diligence" means how carefully we do our homework before making the decision. The homework or feasibility study addresses different parts of the decision. In the industrial minerals business the study seeks to uncover the pros and cons in: o The mineral reserves, quantity, quality, mineability, access, etc. o The environmental impact of mining, processing and transporting. o The economics of operations. o Financial aspects o Legal aspects o Many other aspects o And -oh yes! the marketing aspects.