Appian Funds is offering miners short term, flexible financing solutions to help them navigate the choppy markets that have come about as a result of the spread of the COVID-19 virus.
The private equity firm’s solutions, which include credit facilities, are aimed at helping support mining companies with near-term balance sheet pressures and liquidity concerns, it said.
Appian explained: “The spread of coronavirus has had a profound impact on people’s lives, economies, commodity prices and financial markets worldwide. Although the full impact is not yet clear, Appian is monitoring the situation closely.
“Our first priority is the safety of our people. Our operations around the globe have implemented measures to protect employees, limit the spread of the virus and assist local communities. We will keep these arrangements under review as the situation evolves and will continue to assess how we can play our part in the response.
“We are also conscious that the broader mining industry is already under pressure. There has been a demand shock and prices have fallen. Restrictions on the movement of people have forced companies to change working patterns. Supply disruption could increase further if the virus spreads to key commodity producing regions in Latin America and Africa.
“It is precisely in times like this that long-term capital and through-the-cycle thinking are required to support high quality businesses and management teams.”
To address the challenges presented by COVID-19, Appian said it was expanding its focus and was ready to provide short-term, flexible financing solutions across the capital structure, including credit facilities. This comes on top of its usual direct equity investments.
“The long-term nature of the Appian Funds’ capital base and the flexibility of Appian’s investment mandate allow us to support partners within the range of $50-$300 million of financial support, including equity, bridge loans and other forms of credit,” it said.
Appian has investment experience in both development assets and operating mines across a range of commodities and jurisdictions, with a current portfolio including base, precious and specialty metals in Latin America, North America, Australia and Africa.
Included in its portfolio is Roxgold and Atlantic Nickel (Atlantic Nickel’s Santa Rita operation pictured here).
“We remain constructive on the medium and long-term outlook of the sector and look forward to continuing our engagement with industry participants world-wide,” it concluded.