This is a solution of Business Finance Assignment Help in which we discuss financial analysis of Altona Mining Limited which is a mining company having its operations in Australia.
Introduction
This report contains the financial analysis of Altona Mining Limited which is a mining company having its operations in Australia. The financial analysis has been done on the basis of annual reports of the company for the last few years, publications and information about the company from the ASX website and other sources through research via internet. The financial analysis includes calculation of financial ratios, gearing analysis, estimation of cost of capital using CAPM and calculation of WACC for the company. A letter of recommendation has also been provided in this report for assisting in investment decision in the shares of the company.
Company Description Brief description and History Altona Mining Limited is a copper company having many significant copper projects in Australia and registered office located in Western Australia. It operates in the mining of copper, zinc, gold and other minerals throughout the country. The company is listed on Australian Stock Exchange as well as Frankfurt Stock Exchange. In October 2014, the company sold its copperzinc-gold mine and processing plant in Finland after which it focused its operations towards the Cloncurry Project in Queensland. The business and financial performance of the company depends upon the global economy, world markets for copper, gold and other metals and market perception of mining industry in Australia as well as throughout the world. The company is listed therefore it is also affected by the Australian dollar-US Dollar exchange rates. The input costs such as labour and power in Australia also determines the financial performance apart from effect of world markets. During past few years the company has developed good business relationships with the communities of Australia where its operations were conducted such as