Capstone Mining Cooperation

Capstone Mining Cooperation
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Introduction;
Capstone mining cooperation is one of the most successful mining companies in the world. It’s a business in Canada. That is focused mainly on copper but deals with metal as well. Capstone Mining Corporation focuses on the development of its assets especially in a place where they can operate in. One of the major contributing factors that hinder a company to expand and develop in many regions is Political instability, most investors and businesses will shy away from such a Nation.
The company has three major producing mines, and Pinto Valley is one that is in Arizona, in the United States. Cozamin, is the second which is a silver-copper mine and lastly Zacatecas mine, in Mexico. Lastly the one of a kind Minto copper mine in Yukon Canada. We cannot also forget to mention the two other development projects namely the Santo Domingo project in Region 3in Chile. The second one is copper-zinc Kutcho project in Colombia.
Based on the company’s cash flow and balance sheets, it’s in a very strong financial position, having their headquarters in Vancouver Canada, earns the right on the Toronto Stock Exchange. The supreme visions of the company is being the best mining company in their peered group and deliver the best leading returns. Its mission is operating in a well-mannered safe environment, hence focusing on the generation of a high marketable profile in their profitability.
Capstone has a focused and well-defined strategy that aims at staying top in the market. One of the main things that the company is focusing on in orders to maintain critical operations performance is: maximization of metals produced by using a minimum amount of cash used for a pound of copper. Secondly the expansion of reserve balances in order to extend the life of each asset.
Exploration of existing properties in orders to identify viable resources, and lastly is by delivering projects by pre and feasibility studies on time on the assigned budget by following the operational costs. When it comes to areas such as shareholder returns, this is where Capstone stands out.
The company tends to increase the share plan for the peers basing its focus of long term relationship. Secondly the company tends to increase the company’s financial structure by maintaining good cash flow and balance sheets.
Lucky Explorations of opportunities is another way in which the corporation has its focus. One of the main factors that are critical to this company is safety of the workplace and its employees. For a company to be able to make it in this harsh world, it will and has to maintain a high standard of constant work Ethics. The company also has to be aware of the Risk factors that flow within the company.
Below is the determination impact of the business’s mission plus the vision and core stakeholders of its total success.
Vision;
The company aims to be the one of the best-managed copper company within the relevant peer group delivering the best industry returns. This opportunity has helped the poor in surrounding community.
Mission:
Capstone Mining Corporation is focused mainly on profitability, to scale up a growing production profile or portfolio and operating the company in a safe environment and responsible manner. This behavior has fueled globalization of capstone.
Strategy: Capstone has a well-defined and focused strategy to keep it at the top of its game;
Operational performance: maximize the value of its assets by Maximization of metals produced by the company while trying to minimize the cost of a pound of copper. Expansion of reserve balances in order to extend the life of each and every asset. Exploration of the existing properties, in order to identify an economic viable resource is paramount to deliver development of projects per feasibility and pre-feasibility studies, on time following the budget and disciplining themselves at usage of operating costs.
Prime shareholder returns are achieved by improving asset mixture to develop long-term growth through acquisition, product development and a property or successful exploration of other opportunities. Management of capital structure is important, in order to support growth at the same time maintaining the enrolled high balance sheet. Improvement of share price relative to the peers is crucial so as to develop the long-term business relationship.
Sustainable performance: The Operation proceeds with every jurisdiction in accordance with Capstone’s standards. Maintain finance of social license in order to operate to produce by demonstrating safety, environmental and social responsibility with our community and employees where the company operates in its category. Proactively manage the business risks by successfully embedding enterprise risk management into our company processes.
Safety is capstone priority at the heart of all that it does, and safety is the company’s priority. Its goal is that every one of its employees returns home safely every day. As seen in Barnett, T. (1997)
The five (5) forces of competition which impact a company.
Rivalry – Most Competitors are likely and usually tend to avoid a price war why is this? Since the lower the cost of firm price points, in turn it earns profits after its competitors trump away their profits.
Customers – when there is the existence of powerful clients, they will eventually force firms to produce goods/service of a high quality. Hence, this lowers profits that may exit the market instead of earning below average profits. Thus leaving the organization that uses low cost of production in a monopoly position. Most Buyers will then lose much of their power in buying.
Suppliers – since most leaders can absorb a greater price hence this increases before it raises the price to customers.
Entrants –When Low-cost leaders create a lot of barriers to market entry by its repeated focus on cost reduction and efficiency.
Substitutes –A low cost leading company is more likely to lower costs on the goods and services. They are produced to entice customers who are loyal to stay with their products or product. They will eventually invest in order to develop cheap alternatives or substitutes, purchase patents. As stated by Gujral, G. S. (2012)
SWOT analysis for the company:
Strengths:
The company has long-term investments that help it to remain stable.
It has insurance premiums to compensate for calamity loss.
Weaknesses:
Failure is one of the main areas a company needs to be careful at especially in dealing with new reserves, maintain or enhance existing reserves or develop new operations could negatively affect their future results and financial condition.
Unexpected natural calamities since they work both onshore and offshore.
Climate change and greenhouse effects may adversely impact capstone’s operations and markets.
Opportunities:
The company is globally recognized hence it's easy for the company to invest in a new country.
Skilled labor is available in their area of operation.
This company recognized worldwide and was, therefore, able to achieve loans.
Support from the government since it’s a primary source of revenue.
Threats:
Potential changes to their portfolio of assets through acquisitions and divestments may have a material adverse effect on their future results and financial condition. Increased costs and schedule delays may adversely affect their development projects.
Fluctuations in prices in the global market: when new government regulations are put in or stalled in, such as controls over services like imports, exports then prices will affect the company because it is global.
As seen in Marburger, D. R., & Business Expert Press. (2012) and Wied, S., & Ebers, M. (2007).
Based on the SWOT analysis, below is the outline strategy in which the company uses to maximize its opportunities and strengths and thus to minimize its threats and weaknesses.
1). Low-Cost Producer Strategy
A low-cost production strategy for producing a cheap product or service is essential. It provides the business with a cost advantage relative to competitors, which offers two options: The business is able “undercut" it is significant and minor competitors hence increasing their share and dominance of the market. Or the company may continue selling the products or services at a price that is similar to competitors, thus enabling the business to receive a high-profit margin.
Ways to reduce costs might include: Purchasing more efficient production equipment and other fixed or capital assets in order to increase efficiency, hence eliminating one or many costs producing activities. This method one can find a less expensive supplier of raw material/product. This procedure helps reduce overtime costs and waste of goods or raw materials and implement and continuing monitor cost cutting measures.
2). Differentiation Strategy
The method acts on learning what attributes and features are important especially with the majority of consumers, then by adding or incorporating those attributes and characteristics to their product. These additions make goods or services imperative, valuable and satisfying to the customer. When the company starts to use a differentiation strategy, the company gains a competitive, healthy advantage over the existing operators that exist in the industry.
3). Focus or Niche Strategy
A business employing a focused strategy targets a small area of the market...