WE WRITE CUSTOM ACADEMIC PAPERS

100% Original, Plagiarism Free, Tailored to your instructions

Order Now!

case study on analysis of corporate finance concepts

Company Background
It was the beginning of 2013. After gold prices experienced an unprecedented boom from $300 per
ounce to $1,700 per ounce in the previous decade, Denver-based New Earth Mining, one of the
largest U.S. precious-metal producers, was enjoying rapid growth in earnings. With the continued
improvement of its operating margins, New Earth had accumulated a large amount of cash on its
balance sheet (Exhibit 1). It had a simple debt structure and a reasonable leverage ratio with no
significant risk of liquidity.
Most of the company’s mines were located in the U.S. and Canada, but like many other firms in
the precious-metals industry, New Earth had made substantial investments in gold exploration
projects in other countries such as Australia and Chile. However, like many industry participants,
New Earth executives worried about the sustainability of gold prices at their current levels. With its
strong financial condition and the desire to diversify its business through new capital investments
rather than acquisition, New Earth felt it was necessary to implement a diversification program that
would reduce its dependence on precious metals. The company started investigating the possibility
of diversification in base metals and other minerals.
New Investment Opportunity in South Africa
A new investment opportunity appeared in early 2012. New Earth was informed of the existence
of a major body of iron ore close to the massive Kalahari manganese field in the Northern Cape of
South Africa by an independent exploration consulting company. New Earth felt an investment in
iron ore provided a strategic fit for its diversification objective.
Since steel represented almost 95% of the metal that was used in the world, iron ore was arguably
more integral to the global economy than any other mineral. The price of iron appreciated more than
five-fold from 2002 to 2012 (see Exhibit 2). Unlike the price of gold, for which there was considerable
speculation, the price of iron ore was not expected to fall dramatically given the strong global
HBS Professor William E. Fruhan and Professor Wei Wang, Queens University, Kingston, Ontario, prepared this case solely as a basis for class
discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. Although based on
real events and despite occasional references to actual companies, this case is fictitious and any resemblance to actual persons or entities is
coincidental.
Copyright © 2013 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685,
write Harvard Business Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. This publication may not be digitized,
photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT ?

Our Service Charter

  1. Excellent Quality / 100% Plagiarism-Free

    We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
  2. Free Revisions

    We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
  3. Confidentiality / 100% No Disclosure

    We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
  4. Money Back Guarantee

    If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
  5. 24/7 Customer Support

    We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.

Excellent Quality
Zero Plagiarism
Expert Writers

Instant Quote

Subject:
Type:
Pages/Words:
Single spaced
approx 275 words per page
Urgency (Less urgent, less costly):
Level:
Currency:
Total Cost: NaN

Get 10% Off on your 1st order!