Koolyanobbing Mine Fleet

Immediate Liquidity Supports Miner's Australia Exit

Case Study

Up-front capital and quick turnaround provide smooth exit for Australian mining operation

In July, Gordon Brothers acquired a large portfolio of mining and earthmoving assets located at the Koolyanobbing Iron Ore Mine in Western Australia from a mining operation looking to exit the Australian market. Gordon Brothers’ asset expertise and balance sheet enabled us to provide a solution that addressed the compressed timeframe of the miner. At the same time, the transaction makes the assets available to buyers amidst a shortage of available mining equipment in the market and prolonged manufacturing lead times. The fit-for-purpose assets comprise over 300 major pieces of machinery and equipment from Komatsu, Atlas Copco, Daewoo, Doosan, Kenworth, Sandvik and other brands.  Assets types include drills, dump trucks, excavator, graders, prime movers, as well as other attachments and accessories.

Video Transcription

Full conversation below from Tim Stewart and Matt Aubrey on how we're helping this client transform its business.

Matt Aubrey: This gear is fit for purpose. It's been out working already, so we know that it can be turned on quickly again. These assets could go to a number of parties in a piecemeal breakup. The most important thing about it is they're ready to go now and people have a need for them.

Tim Stewart: This deal is really the first time that a financial asset advisory firm like ourselves has put their balance sheet behind a transaction of this size. We were able to provide the client with an immediate liquidity and solve the problem. We were also able to respond in an extremely compressed timetable and provide a fully underwritten proposal in a very, very short period.

Aubrey: We've got a whole range of expertise that we now pool into what is one global business that we can draw on at any given time, to not only be able to take risk, but be able to support customers through change.

Stewart: It really kind of differentiates us and shows clients that when they're looking to create liquidity, where time is of the essence, where certainty is critical, there is a very strong option for them.