Force Commodities (ASX:4CE) has teamed up with specialist risk advisory group Noah’s Rule to help in commodity risk management at the high-grade Tshimpala lead and silver project in Republic of Malawi.
Noah’s Rules will provide market risk advisory services to the Board and its executive management as well as monitor and manage commodity and currency risk exposures through policies, processes and hedging activities regarding the Company’s Offtake Agreement with Transamine Trading SA.
The involvement of Noah’s Rule with Force comes at an important time for us, as we continue to advance exploration and development activities at the Tshimpala Project in Malawi,” Force Commodities Managing Director Jason Brewer said.
“As a result of our current and planned increased level of activities in Malawi, it is important for Force to strengthen its systems of risk management and internal controls, particularly given the potential risks and market exposures under the Offtake Agreement that we have entered into with Transamine for the high-grade lead and silver Tshimpala Project.
“The Noah’s Rule team are a leading specialist risk advisory company with a proven track record of working with a number of well-established and successful mining companies. I have known Sean Russo, Noah’s Rule Principal and Joint Managing Director, for a number of years and his experience as the Managing Director and a member of the Executive Committee of NM Rothschild and Sons (Australia) Limited, will be of tremendous value to the Company and our shareholders.”
Established in 2004, Noah’s Rule provides independent advice on strategy and execution to companies managing significant commodity and or financial markets exposure.
Noah’s Rule has acted for and on behalf of a number of major ASX and internationally listed resource companies advising on and executing on behalf of its clients, hedging contracts covering over 20.8 million ounces of gold, 12.8 million ounces of silver, 1.1 million tonnes of copper, 295,000 tonnes of lead, 42,500 tonnes of nickel, 96,000 tonnes of zinc, 1.1 million tonnes of coal, 846,000 barrels of oil and over A$7.3 billion in AUD equivalent foreign exchange hedging and A$10.5 billion in AUD equivalent interest rate swaps.
Noah’s Rule will work closely with the Company’s Managing Director and Non-Executive Director Simon Grant-Rennick and Chief Financial Officer in the coming months as the Company continues to advance its activities at the Tshimpala Project.
Shares in Force were trading at 1.8c on Thursday.