Malagash Metals and Mining Limited is a privately owned metals and mining advisory company, established in 2008. Our clients include corporations, investors, private equity firms, accounting firms, law offices and banks with locations in Hong Kong and Canada.
Our solutions manage technical and financial issues and risk, primarily specializing in strategic and expert advice on commodity financing, mining equity markets and physical metals trading. Malagash has executed and advised on numerous transactions in a multitude of capacities including:
As we recognize the importance of changing markets, advisors are knowledgeable on global financial requirements and regulations from both the Hong Kong Securities Institute and the Canadian Securities Institute. Accreditations include Regulation of Securities and Futures, Derivatives and Asset Management and the HK Securities and Futures Commission regulated Responsible Officer Type 2 Dealing in Futures .
Malagash is uniquely positioned to understand and provide independent strategic corporate and market advice while keeping a focus on the technical and operational risks in the mining and metals sector.
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Malagash was founded by Alastair McIntyre P.Geo (Limited), MAusIMM CP (Man) with more than 30 years of global metals and mining experience. Alastair’s career began in exploration and underground mine geology where he transitioned into finance with a role as Sales Manager at the Royal Canadian Mint where he negotiated physical gold refining contracts with global mining companies and central banks. Alastair built his most successful chapter while serving with global commodity banks and advisory firms, leading technical and financial businesses in Toronto, New York, Sydney and Hong Kong, primarily focused on producer and consumer price risk management, M&A, IPO’s and bank financing.
Significant accomplishments included dominating the Asian physical silver market by purchasing 75% of China’s total annual refined silver export and establishing inaugural gold lending and import and export facilities for “Big Four” Chinese banks as the first to support consignments and physical sales in China; establishing trading with SAFE and PBOC; Project Manager in the Commercial Advisory role for the HKEX US$2.1 B acquisition of the LME, in addition to project management of numerous Competent Person’s reports supporting IPO’s on the HKEX including Chinalco’s IPO which raised US$450 mm. Alastair is here to share industry insights and expertise, as a leader and visionary for your success.
Malagash’s understanding of mining and metals technical and financial risks and rewards provides clients with a unique opportunity to focus on results in all disciples of the sector. A key element to delivering expert advice to clients is Malagash’s ability to draw on a global network of miners, investors, central banks, commercial banks, producers, smelters, consumers, corporates and refiners. This ensures clients receive a global perspective with a depth of expertise and experience.
Precious metal and base metals markets are complex and at times opaque. Malagash brings the benefit of multiple years experience and exposure to multiple disciplines in each market. An understanding of how to extract metals, process and refine, price and trade, fund positions or projects, delivery to consumers and to finally integrate with the capital markets. From the nuances of metals futures and OTC trading and complex smelting and refining contracts, Malagash can help you achieve to best value from your exposure to metals production or consumption risk.
Understanding which investor and what investment type is critical to a successful funding. The spectrum of the types of financing and the participants in the market has broadened as traditional bank and equity finance has become less available and attractive. However, new sources of funding does not always translate to improved liquidity. Malagash, through its global relationships of private equity groups, streamers and alternative mine financiers, family offices and investment houses who specialize in mining capital, can advise mining clients how to navigate this changing market. Malagash can help determine the best source and cost of capital through: equity, alternative financing (such as streaming, prepaid forwards, off-take financing) and traditional bank debt and equity. Malagash can review contemplated facilities to ensure market prices are being offered.
Since their inception, cryptocurrencies have been considered particularly volatile investment instruments when it comes to their price. That’s led to price jumps and crashes, preventing cryptocurrencies from being used for everyday goods and services in some cases, due to the risks for vendors and merchants.
Much attention has been devoted to developing digital currencies backed by metals such as gold or silver– often known as stablecoins to reduce this volatility. Stablecoins uses the technology of the blockchain to digitize the metals from a secure location and made available to consumers via a digital wallet. The stability of the gold removes the volatility or speculation that is inherent with traditional “cryptos” such as Bitcoin or Ethereum. A stablecoin in gold will take on the trading value of gold while providing the added convenience of enhanced access to the gold markets through a liquid digital market. Malagash is uniquely positioned to understand the important link of how physical gold or silver can be used to achieve these principles.
Good quality projects operated by experienced knowledgeable management is highly sought after by investors. Reports such as NI 43 101 and JORC outline the technical components of a target but do not identify value or potential. In some ways, they may inadvertently hide or overstate potential. Malagash can help unlock or diffuse potential and make expert opinions on the quality of the project and management in order for investors to understand the target.
Malagash has developed a global pipeline of deal opportunities with Junior Mining Companies looking to access funding. Important to managing relationships with funders is understanding their investment criterion thus bring deals to the table that make sense. A combined technical and financial competency is an important skill when determining the potential of any project and Malagash is uniquely positioned to identify high value projects and present the right project to the right investor. This improves efficiencies, manages expectations and increases the probability of achieving a successful deal.
Enhancing shareholder value is a key consideration for CEO’s and Boards. Malagash can advise Boards and management on a strategic direction with a focus on adding shareholder value through acquisition or disposition and optimization of existing assets. This can involve a complete review of the business or addressing key technical issues related to production, processing or resource/reserve estimation and how to achieve maximum optimization. This can also involve identification of Management risks and providing solutions to optimize talent.
There are benefits and perils involved with hedging. Hedging can protect cash flow but can also cap potential upside. Malagash can advise mining companies on the optimum strategies of managing a hedge book and how to establish trading facilities with dealers suitable for their production profile. Malagash can also advise on a variety income enhancing approaches to hedging and also value or restructure in or out of the money hedge books.
Alternative financing products have become mainstream in the world of mining finance as banks begin to exit the sector. Basel III (liquidity) and Dodd Frank (regulatory) have all but driven traditional metals dealers out of the market. Streaming and royalty deals are filling this space, but at a cost. Malagash can advise producing and developing companies how prepare for and value streaming deals.
Producers of precious metals understand that the product that they produce is money. Malagash can help producers manage the refining process from production of mine site doré to the delivery of London Good Delivery metal. This will ensure that clients obtain the best value from this, at times, complicated process. Malagash can negotiate refining contracts, identify risks in the assaying processes and advise on the outturn of refined metal. We can also establish relationships with the major bullion buyers globally to ensure timely and competitive pricing of refined metal. Malagash can also assist n arranging prepaid dore facilities which provides producers access to cash in advance of final delivery of refined gold.
Private Equity has also taken a greater role in mine finance using a combination of debt financing and streaming/prepaid deals to help miners achieve their CAPEX or OPEX requirements. Malagash can advise PE firms on the key issues of understanding risks in the various disciplines of technical analysis such as resource and reserve estimation, mine planning, processing and social and environmental responsibility. In addition, review, shortlist, and source deal targets.
Equity financing is an important source of capital for mining companies despite the current slump in the market. Malagash can advise in the preparation of the technical documentation required to list on the major global exchanges while the recovery is taking place. In addition, Malagash can provide strategic advice on the most suitable market for your company such as the TSX, AIM, SGX and HKEX as well as provide advice on attracting strategic cornerstone investors.
Mergers and Acquisitions play an important role in growing capacity and improving efficiencies in the mining sector. Low prices, and at times high prices, will often drive this activity. The key element to a successful acquisition is understanding both the technical and financial characteristics of the target and how they interact. Malagash can be a strategic advisor to this process and assist with the M&A teams of technical advisors, accountants, bankers and lawyers.
An expert witness is a person with specialized skill sets whose opinion may help make sense of the factual evidence of a litigation or arbitration. Testimonies from expert witnesses can have a tremendous influence on the final decision of the matter at hand. A crucial aspect of selecting an expert witness is that the expert must present as impartial, knowledgeable, coherent and credible. Malagash works selectively to help plaintiffs and defendants to ensure they are best represented in the claim. Alastair McIntyre represented the Canadian Government in the landmark GST tax case “The Queen vs Bombay Jewellers that formed the foundation of how a precious metal is defined in the Canadian Tax code as a financial instrument and its application or not with respect to GST.
Investment strategies of Family Offices consider investment opportunities with a long time horizon. This means they can manage the ups and downs inherent to the mining business and not focus on short term gains typical of PE or Hedge Funds. Malagash is well placed to help with the investment decisions for Family Offices and assist in finding quality assets. Malagash can help Family Offices understand the value position in the current market cycle and the associated risks from production to social responsibility and sustainability.
Western markets present challenges for Asian clients and Asian markets are often challenging for western clients. Malagash’s 14 years of experience in Asia can help bridge this gap by advising western clients how to establish a presence in the HK and Singapore markets and in particular identifying important cultural and investment criteria needed for Asian investors. For Asian clients, Malagash can assist in developing strategies to target western investors and identify western projects for investment.
Intro: Thirty years’+ experience in managing, building and advising on new and existing businesses in the global metals and mining sector. Background encompasses a diverse range of specialized competencies with 20 yrs finance experience in Toronto, New York, Sydney and most recently 12 yrs in Hong Kong. This is in addition to 15 years’ experience in gold refining, exploration and mine geology in Canada.
Knowledge: Strategic understanding of the mining and finance industries includes markets pricing and fundamentals, streaming, price risk management, structured hedging and funding products, financial and technical due diligence; complemented with technical skills from a background as an exploration and mine geologist.
Deal Execution: Proven deal execution skills include: metals risk management, structured pricing strategies and funding programs for mining companies in North and South America, Asia, Africa and Australia; hedging and physical silver transactions for Chinese producers representing 75% of China’s total annual silver production from 12 accredited LME smelters; established inaugural gold lending facilities for “Big Four” Chinese banks to support gold imports for consignments and physical sales in China in addition to trading with SAFE and PBOC.
Advisory: Successful advisory transactions include; Project Manager in the Commercial Advisory role for the HKEX US$2.1 billion acquisition of the London Metals Exchange (European and Asian cross border deal of the year for 2012), management of numerous Competent Person’s reports supporting IPO’s on the HKEX and SGX and technical due diligence and Community, Social Responsibility Reports to support bank financings and M&A activity.
Management: Held senior positions with Canada’s Scotiabank, including a secondment to Commonwealth Bank of Australia, and two European banks; managed Behre Dolbear’s global financial practice and technical business in Asia; managed the Royal Canadian Mint global gold refining business; held directors an officers positions with private equity and public and private mining companies; in addition to managing mineral exploration projects and worked as an underground mine geologist bringing a gold deposit from development into production.
Connected: Focused, accountable and results driven with a global contact base of miners, investors, central banks, commercial banks, producers, smelters, consumers, law firms, dealers, corporates and refiners.
Compliance and Regulatory: Experienced senior executive and director of public and private companies with detailed knowledge of compliant reporting such as NI 43-101, JORC and VALMIN/CIMVAL Codes. Strong regulatory background including completing HKSI Papers: Regulation of Securities and Futures (1); Derivatives (3); Asset Management (6) and SFC regulated Responsible Officer Type 2 Dealing in Futures; CSI CSC course, Chartered Professional status in Management MAusIMM CP (Man), P. Geo (Ontario) and holder of a B. Sc. (Geology) and B. Comm (Economics) Dalhousie University, Canada.
Media: Frequent guest on CNBC Asia, Bloomberg, CNN, CBC and Expert media commentator for Dow Jones and Bloomberg and presenter at numerous conferences in Asia, Europe, North and South America
Clients of Malagash have the benefit of execution experience in hundreds of structured commodity deals in major global centres such a Toronto, New York, Sydney and Hong Kong in multiple currencies, metals, and products including: metals hedging and funding programs for mining companies in North and South America, Asia and Australia; hedging, gold loans and physical precious metals transactions for Chinese producers and consumers in Asia. Clients can also benefit from Malagash’s experience in advisory roles to support flows of capital in M&A, bank financing, Initial Public Offering (IPO) and private equity. This includes management of numerous Competent Person’s reports supporting IPOs on the Hong Kong Stock Exchange (HKEX) and the Singapore Exchange (SGX), technical and financial due diligence; and Community and Social Responsibility Reports.