Mining Governance & Strategy

In capital-intensive industries, operational delays and liquidity pressure can quickly erode stakeholder confidence, particularly when debt obligations and capital market timelines begin to slip.

This case study explores how an ASX-listed thermal coal mining and development company engaged Vantage Performance during a period of significant financial and stakeholder pressure.

The company held a controlling interest in approximately 2.2Mtpa of production capacity across three international mining operations. However, start-up losses and operational production issues had materially impacted cash flow and debt servicing capacity.

At the time of engagement:

• Liquidity had been exhausted pending completion of a planned rights issue capital raise

• Convertible note holders and standstill creditors were becoming increasingly concerned about repayment risk

• Key milestone deadlines associated with the rights issue process had repeatedly been missed

• Management credibility with creditors had deteriorated

• Standstill parties required increased transparency and oversight as a condition of continued support

Vantage Performance was engaged by standstill creditors to act as an independent observer and facilitate improved communication, stakeholder management, and restructuring oversight during the capital raising process.

Key initiatives included:

• Rapid assessment of the company’s operational, financial, and restructuring challenges

• Frequent engagement with directors and executive management to assess progress and emerging risks

• Ongoing communication and reporting to standstill creditors regarding business performance and capital raising progress

• Facilitation of periodic conference calls between management and creditor groups to improve transparency and alignment

• Preparation of regular stakeholder update reports to support continued creditor confidence and cooperation

• Oversight and monitoring of progress against key rights issue milestones and restructuring objectives

A major focus throughout the engagement was rebuilding trust and transparency between the company and its creditor groups while creating sufficient time and stability for the planned capital raise to proceed successfully.

The Outcome:

• Improved stakeholder confidence through increased transparency and structured communication

• Continued support from standstill creditors during a period of significant liquidity pressure

• Accommodation of delays to the rights issue process through negotiated standstill extensions

• Successful completion of a fully underwritten rights issue raising approximately $35.1M

• Application of capital raise proceeds toward scheduled debt repayments to standstill parties

• Stabilisation of the company’s financial position and debt servicing capability

The result wasn’t simply the completion of a capital raise, it was the restoration of stakeholder alignment and confidence during a highly pressured period for the company.

This is where Vantage Performance operates: helping businesses navigate complex stakeholder environments, liquidity pressure, and strategic restructuring events through disciplined communication and execution.