Commercial terms

A study to identify the best processing route for a PGM producer’s concentrate

SFA (Oxford) mapped out the commercial options for a client’s concentrate, identifying and defining the various processing points (including capacity constraints) in the global value chain (quantifying product impact) for this concentrate from smelter to the refinery.

Investment appraisal

Identification and quantification of South Africa’s low-grade PGM waste products from concentrators, smelters and refineries

The SFA (Oxford) team compiled a list of South Africa’s PGM producers and respective concentrators, smelters and refineries, calculating the amount of PGMs produced on an annual basis for each metallurgical process, and estimating the production of secondary materials from each process and defining the typical chemical assay of each secondary material.

Processing options and commercial terms

An assessment of advanced mineral processing off-take options and indicative commercial terms for a new platinum mine

This assignment provided the client with a high-level depiction of South African PGM mineral processing capacities including concentrators, smelters, and base metal and precious metal refiners. In addition, it presented a high-level assessment of non-South African domiciled mineral processing options and addressed both the commercial challenges and legal constraints as defined by the South African Minerals Beneficiation Bill.

It identified the processing options that could potentially offer the client maximum value including an analysis of the payability of the product as ore, concentrate, matte and refined metal. The pros and cons of the processing options were examined, including the potential for advance payment, and indicative terms. A succinct, high-level report and strategic recommendation on mineral processing options were then provided to the client’s Executive Committee.

Independent analysis of the lithium hydroxide market out to 2025

The business case for downstream refining of battery-grade lithium hydroxide

SFA (Oxford) presented a detailed current and forecast lithium hydroxide (LiOH) market balance and analytical report to assess the medium-term LiOH market dynamics and pricing to advance the investment case for a new plant on behalf of a lithium producer.

Identification of future feed streams

Evaluation of PGM-grade waste material from South African operations

An analysis was conducted of the flows and typical grade of PGM waste material from the concentrating, smelting and refining processes of South African PGM producers, and the most relevant producers of PGM waste material for the client’s smelter and refinery.

Financial modelling and processing due diligence

Specialist consultants and financial modelling for a new PGM mining project in Zimbabwe

SFA (Oxford) acted as a specialist consultant to the lender in reviewing the business plan, processing strategy and financial model.

Business case crystallisation

Strategic workshop and contextualisation of the chrome industry

A strategic workshop was facilitated by SFA (Oxford) to crystallise a client’s business case for participation in the business of UG2 tailings dams and the retreatment of contained PGM waste, detailing the value-adding opportunities it presented to the company. The team also assisted the client through a contextualisation of the chromite concentrate market in terms of commercial price valuations for the concentrate.

Building battery factory databases on behalf of a lithium supplier

Identifying long-term battery production capacity and lithium requirements

A lithium producer approached SFA (Oxford) to build a comprehensive database of battery manufacturers, offtake agreements and MoU’s, product feeds, volumes and development timeframes to assess the pent-up demand requirements of battery makers to address long-term OEM electric vehicle production strategies out to 2030 and beyond, as well as lithium product requirements.

Market fundamentals and technical studies

Market intelligence, and mine and project due diligence

SFA (Oxford)’s expertise in chrome includes the listing of chrome companies and providing chrome and ferrochrome supply-demand market intelligence and price forecasts to support the feasibility and bankable feasibility studies to chrome companies globally. The studies quantified the contribution chrome ore revenues made to a platinum producer and provided price valuations and commercial terms for UG2 chrome concentrate to traders/ exporters. SFA has a full understanding of the chrome value chain for primary and secondary producers in South Africa.

Insight for strategic planning

PGM business intelligence for strategic planning purposes

SFA (Oxford) provided an estimation of PGM primary and secondary mine concentrate (base metal etc.) volumes by region, along with an explanation of refining treatment flows (player integration versus reliance on third-party toll treatment). This included estimates of the internal and, where applicable, external costs of producing concentrate.

The characterisation of primary and secondary PGM smelting and refining by region was analysed, including the main players, their capacities, their level of integration in the PGM chain, and, where possible, their utilisation rates and margins.

The spent autocatalyst collection market and associated infrastructure by region were researched and analysed, including the main players, collection efficiency rates by region and the typical business models employed.

Part of a due diligence team evaluating nickel processing plants

Assessing off-take targets for acquisition

The SFA (Oxford) analysts have aided a client to evaluate nickel processing plants across the globe for successful acquisition. To support the due diligence team we contextualised nickel targets, provided product price forecasts and augmented transactional rationale with detailed analysis and risks of changing the product portfolio to serve the battery industry and assessed average realised premiums.

Value addition and beneficiation strategy

A joint collaboration with major PGM players

SFA (Oxford) identified the critical factors required for an optimal PGM beneficiation model for a PGM producing region, independently assessed commercial metallurgical options, and an incentive framework for higher investment levels.

Reverse engineering of potential concentrate processing options

Leveraging off SFA (Oxford)’s vast PGM knowledge, relationships with the major smelters, and a ‘reverse-thinking’ metallurgical review to establish the smelter target envelope

SFA held a metallurgical review workshop and undertook site visits to a selection of smelters across the globe to establish which of the selected smelters would a) prefer to treat, b) tolerate, c) could be adjusted to take, a client's concentrate feeds in terms of composition, tonnage, and timing.

The team clarified the nature and indicative terms of a potential mineral processing agreement with each of the selected smelters. Using indicative commercial terms provided by the smelters, SFA undertook a financial simulation exercise to determine which concentrate options yielded the highest revenues, as well as defining the nature of test work required for reverse engineering an optimal concentrate specification for acceptance at the smelter, and the optimal window for processing.

Asia-Pacific Rim nickel-cobalt producer’s study

Nickel laterites and HPAL processing assessment

SFA (Oxford) conducted a regional analysis of all Asia-Pacific Rim nickel-cobalt producers from nickel laterite deposits, to identify all regional players, volumes and trading links, as well as focusing on HPAL (high-pressure acid lead) operations and projects, and providing a 5-year price view of the nickel and cobalt markets.