Engagements

Analysis of bidder's coal-related property

CRA assisted a bidder on a coal-related property in evaluating the adequacy and quality of its reserves, present and future coal mining costs, and the effect of varying scale on those costs. CRA’s analysis highlighted the differing uses to which this coal was put and the effect of variations in demand in one market on costs for use in the other. We also considered the operating environment of the mine and the potential for reductions in costs. CRA provided opinion on relative valuation and on the advantages and disadvantages of high-sulfur eastern North American mines vs. western mines for a client developing its long-term acquisition strategy.