Carolina Arenivas, Sofia Hernandez

Members of the board of WCM

6 October
CASE STUDY 6
Carolina Arenivas
Sofia Hernandez
Winton Carter Mining
Task page 59
Director 1 low
Director 2 high
Director 3 very high
Director 4 medium
Director 5 very high

Winton Carter Mining: Report
Executive summary:
The company has mining interest in Africa and has been highly successful in
exploiting copper, cobalt and bauxite deposits. The risks were evaluated and
was decided to mention very lightly about the project in the prospectus and sing
with ATZ.
Introduction:
- The 5 different risks
- the scale in which every risk was evaluated
- The conclusion
- The recommendations
Findings:
1- The exploitation risk: various sites near from Kango have produced good
quantities of copper and basalt, coltan, and diamonds deposits.
2- The security risk: the country has been unstable for many years and there
have been civil disturbances in the area.
3- The health risk: mining the area could result in workers and inhabitants
suffering from skin diseases because of industrial emission.
4- The economic risk: the stock-market prices of some smaller mining
companies have been falling.
Carolina Arenivas, Sofia Hernandez
Members of the board of WCM
6 October
5- The financial risk: WCM will need to invest in expensive new machinery to
exploit the site.


The first one was evaluated in low because the sites has potential but theres no
guarantee the deposits will be profitable, the second one was evaluated with
high risk because some mining companies have been attacked and some
workers have lost their lives, the third one was evaluated in very high risk
because this can involve expensive legal costs and a heavy expenditure to
remedy the problem, the fourth one was evaluated in medium because the
industrial metals market is volatile and the last one was evaluated in very high
because the exchange rate of the local currency is fluctuating.
Conclusion:
The project must be mentioned very lightly in the prospectus and sing whit ATZ.
Recommendation:
1- Find a solution for the risks that were evaluated in very high.
2- Before the sing, ATZ must know about all the details of the project
3- Look for other company to sing other projects












Carolina Arenivas, Sofia Hernandez
Members of the board of WCM
6 October