Mac3702-Application Of Financial Management Techniques Assignment 2 Semester 2 Latest 2022. SUBJECT: Evaluation of Thoriso Minerals
As per your request, I have analysed the financial and non – financial
information of Thoriso Minerals and the findings have been detailed below.
(a) Risk assessm...
As per your request, I have analysed the financial and non – financial
information of Thoriso Minerals and the findings have been detailed below.
(a) Risk assessment of Thoriso Minerals (South Africa)
Business Risk Potential impact of the business risk
involved
Increasing labour cost and This can cause disruptions in operations,
unrest destruction of property and increased
operational costs as the labour component
increases due to pressure from labour
unions. The employees may also not be
satisfied with their wages and other
employment benefits accruing to them and
may resort to labour action, leading to
disruption in business activities which has a
direct impact on production and the entity’s
profits.
, SUBJECT: Evaluation of Thoriso Minerals
As per your request, I have analysed the financial and non – financial
information of Thoriso Minerals and the findings have been detailed below.
(b) Risk assessment of Thoriso Minerals (South Africa)
Business Risk Potential impact of the business risk
involved
Increasing labour cost and This can cause disruptions in operations,
unrest destruction of property and increased
operational costs as the labour component
increases due to pressure from labour
unions. The employees may also not be
satisfied with their wages and other
employment benefits accruing to them and
may resort to labour action, leading to
disruption in business activities which has a
direct impact on production and the entity’s
profits.
Depressed South African This could impact on the operational
economy capability of the entity as some resources
might not be immediately available whilst
some key materials can be very expensive.
Unpredictable PGM prices This can affect the profitability hence the
viability of mining activities and the worse -
case scenario can even result in losses.
Unclear government policy Lack of clarity on indigenisation laws can
and legislation in Zimbabwe heavily impact on profitability from the
considering significant Zimbabwe business and also there is a
change in leadership negative effect on property rights. If the
company does not comply with legislation,
they might face penalties and that will
increase their expenses.
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