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Eunomia of Solon - the inspiration behind our name
Eunomix conducted a comprehensive assessment of South Africa's political economic performance since 1994, leading to a diagnosis of key factors and levers affecting current and future performance. On this basis, Eunomix identified three plausible scenarios for the future performance of the country. These were extensively discussed with the client (Exco and Board), implications for the company were assessed, and influenced diversification and acquisitions, and stakeholder engagements.
Eunomix conducted a local baseline risk assessment ahead of exploration, which encompassed safety and security policies and protocols, and the conduct of local community pre-consultations and compensation. Further work included due diligence on local partners, designing an exit strategy focused on avoiding threats to the ‘political licence’, and developing an infrastructure concept study. Our work with the client has greatly improved relations with local government and communities.
Eunomix conducted a two-phased due diligence for a global mobile phone manufacturer, delivering a country risk assessment for the DRC, specifically related to the mining supply chain, and a focused examination of three selected copper-cobalt mining companies. This included an assessment of their historical performance, management and reputation. Through Eunomix’s recommendations, the client was able to confidently select a cobalt supplier that met its own standards of integrity and responsibility.
Eunomix undertook a strategic risk assessment of the energy sector in South Africa in order to assess our client’s long-term power vulnerability and to develop options for the diversification of energy supply. Based on the identified risks, Eunomix developed options to secure emergency back-up power to maintain safe operations through a blackout.
We conducted an in-depth due diligence on a potentially risky acquisition target operating in a high risk jurisdiction for a large resources company. We were able to comprehensively identify key risk areas arising from the operating environment, the target’s business structure, the nature of the assets owned by the target, the way these assets were acquired, and potential compliance and legal issues. We also ascertained the target’s key value proposition. This due diligence played an important role in our client’s decision not to proceed with the acquisition.
Eunomix designed a strategy framework for a major PGM producer that would give our client the agility to shift resources tactically, but within a consistent strategy. To achieve this, we analysed the evolution and effectiveness of our client’s strategy; we conducted in-depth statistical and qualitative analyses of the external factors (FX rates, commodity prices, government, labour, socio-economic pressures, etc.) to prioritize key external value-drivers. We then defined the relationship between the operational factors and external factors and how these factors drive value. These interrelationships were used to design a framework that allows our client to formulate strategy that is both value-creating and value-protecting.
Eunomix has conducted in-depth analysis of the MPRDA’s efficacy, constitutionality and legality and engaged in policy advocacy on behalf of clients, with positive results. Furthermore, Eunomix made submissions to the Davis Tax Committee on transfer pricing and analysed the relationship between the revised BB-BEE codes and the Mining Charter. On the latter, Eunomix advised clients on implications for compliance and licencing.
A comprehensive analysis of the political, economic, social, legal and regulatory status quo in Zambia was delivered to the client, using public domain information, data analysis, original research, and source-based interviews. The final report was used to guide senior leaders and the board on investment and capex decision-making for Zambia.
Lack of adequate infrastructure represent a key constraint to development in Africa. It presents a significant risk for all stakeholders. In this project, Eunomix has developed a pre-concept for an iron ore mining project for initial design, routing, costing and engagement with government. The objective of the project is to propose a positive sum-game solution to the government.