In the past years LARCO, similar to the entire industry, has suffered significantly due to the reduced prices of Νickel in the international market. In recent years LARCO realized losses, suffered from poor liquidity and increased liabilities, mainly towards suppliers. Larco’s shareholders have requested from Larco’s management the submission of a 10-year strategic development plan that ensures company’s long-term viability and sustainable growth leveraging the interventions proposed in the business plan as well as the planned investments that are necessary for the company’s competitiveness and its compliance with regulatory requirements.
Kantor in consortium with Oliver Wyman supported Larco in the formulation of this 10-year strategic development plan. Main services provided include market analysis and review, competitor analysis, financial analysis, strategy review, operational review, financial restructuring, company valuation, implementation plan design.
Kantor's provided services can be summarized in four phases:
Phase 1-Strategy Review: Detailed analysis of the Nickel market structure including Competition analysis, main peer companies to Larco, Value Chain Analysis of Larco, Nickel price & Supply-Demand Forecasts.
Phase 2-Operational Restructuring: Detailed analysis of each Business Unit with co-operation of Working Groups composed by Larco’s Executives. Working Groups Breakdown:
- Organizational Restructuring WG
- Mining WG
- Operational- Smelting Plant WG
- Environment WG
- Commercial WG
Phase 3-Financial Performance: Revenues and cost structure analysis of Larco’s P&L, Old Liabilities structure and management scenarios, Sensitivity analysis for various variables, company valuation using multiples and DCF
Phase 4- Implementation Plan: Timeline for the implementation of all the initiatives described in the ten-year Strategic Development Plan delivered to Larco. Investment Plan description, Milestones.
LARCO GMMSA General Mining & Metallurgical Company