OCIM Mining Pty. Ltd.

Location: Victoria, Australia
Commodity: Gold
Project Phases: Project Due Diligence / Lender’s Engineer

Client Overview

OCIM Precious Metals SA, based in Paris, France, is a global precious metals trading and investment firm with expertise in structured financing, physical metal trading, and mining project investments. Through its subsidiary, OCIM Golden Camel Mining Pty. Ltd., the company focuses on the responsible development of resource-backed projects, emphasizing rigorous due diligence and risk-managed investments in high-potential jurisdictions, such as Australia.

Client Needs

OCIM required an independent due diligence review to support a lending decision for the Golden Camel gold project in Victoria, Australia. The primary objectives included:

• Resource Validation: Confirming that the project’s gold resources were sufficient to meet repayment covenants of a royalty-based loan.
• Execution Plan Review: Ensuring the proposed mine plan, timeline, and construction strategy align with return‑on‑investment targets.
• Constructability and Risk Assessment: Evaluating technical feasibility, permitting readiness, and identifying potential operational or financial risks that could impact project viability.

TMG’s Contributions

• Technical Resource and Mine Plan Review: Conducted a detailed assessment of the geological block model, mine plan, and metallurgical testwork to verify reserve sufficiency and forecast gold production against repayment obligations.
• Risk Identification and Mitigation Strategy: Identified critical risks across procurement, construction, and commissioning phases—including aggressive timelines and equipment delivery challenges—and recommended revised scheduling and contingency measures.
• Operational and Financial Assessment: Reviewed execution strategies, including site layout, tailings management, and permitting documentation. Evaluated CAPEX estimates, cash flow models, and community engagement approaches, highlighting gaps that could affect financial stability and project delivery.
• Strategic Recommendations: Advised further block modeling, additional geotechnical and metallurgical investigations, and refinements to mine planning to improve alignment between project economics and operational realities. Provided a formal recommendation to OCIM regarding the financial viability of proceeding with the loan.

Results

TMG’s due diligence provided OCIM with a comprehensive understanding of the project’s risks and opportunities:

• Loan Viability Determination: The review concluded that available resources were insufficient to meet the repayment covenants, which guided OCIM’s decision not to proceed with financing.
• Risk Clarity and Mitigation Roadmap: Identified critical gaps in planning and execution, offering actionable recommendations to address deficiencies and improve future project feasibility.
• Financial Impact: Protected OCIM’s capital by preventing a high‑risk investment and informing future due diligence standards for similar projects.
• Project Savings:
  • $1,963 – Discount on TMG services rendered.
  • $9,450,000 – Protected capital by determining the borrower’s inability to meet debt covenants due to insufficient in‑ground resources.

The Golden Camel Project exemplifies TMG’s expertise in lender‑side due diligence, providing clarity on resource sufficiency, constructability, and execution risk to safeguard investor capital and inform strategic financing decisions.