Mining
Empowering Mining Companies with Strategic FX Management for Fundraising Success with Fiscal FX
Our client, a recently listed mining company on the Stock Exchange in Canada, found themselves facing critical challenges in managing foreign currency transactions for their fundraising activities. As a company working closely with newly listed mining firms, they aimed to protect funds raised for mining projects, but the exposure to fluctuating exchange rates, especially when converting funds from CAD to USD, posed a significant risk. This risk was particularly pronounced during fundraising activities across borders, creating the need for effective budgeting and fund management.
Fiscal FX’s Recommendations
The mining company sought to swiftly convert a substantial capital injection in CAD into USD to fuel expansion plans. We optimised foreign currency transactions by executing same-day conversions and settlements, addressing the slow USD settlement process and providing timely access to the funds.
Recognising the burden of hefty foreign exchange rates and cumbersome payment charges imposed by the current banking partner, Fiscal FX significantly reduced payment charges, ensuring that every penny raised for mining projects was maximised for its intended purpose.
To shield the projects from adverse FX movements and offer stability in budgeting, our team introduced tailored risk management strategies. By fixing the exchange rate at the time of fundraising, our client could guarantee a fixed amount in USD, providing them with predictability and control over their financial planning.
An intuitive online platform accessible 24/7 was introduced to empower the client with real-time visibility and control over their transactions. This platform facilitated seamless monitoring and management of funds, contributing to efficient decision-making.
Results
The implementation of Fiscal FX’s recommendations yielded significant benefits for the mining company:
Swift Conversions and Settlements: Our intervention resulted in same-day conversions and settlements, eliminating the delays associated with the previous USD settlement process.
Reduced Payment Charges: Significant reductions in payment charges ensured that a larger portion of the raised funds was directed towards the intended mining projects, enhancing the overall impact of the capital injection.
Stability and Predictability: The introduction of tailored risk management strategies and fixed exchange rates provided the mining company with stability and predictability in budgeting, allowing for effective planning and utilisation of funds.
Real-time Visibility and Control: Our intuitive online platform empowered the client with 24/7 real-time visibility and control over their transactions, enhancing overall efficiency in managing and monitoring fundraising activities.
Our strategic interventions successfully addressed the challenges faced by the mining company, optimising foreign currency transactions and providing crucial benefits such as swift conversions, reduced payment charges, stability, and real-time visibility. This empowered the client to navigate fundraising activities with confidence and maximise the impact of the capital injection on their mining projects.
