Treasury Services for Mining Operations

End-to-end treasury advisory for Australian mining companies — cash and liquidity management, banking architecture, commodity and FX hedging, and treasury operating model design.

What This Service Does

Treasury advisory covers the design, optimisation, and day-to-day management of a mining company's financial infrastructure — how cash is managed, how banks and facilities are structured, how commodity price and foreign exchange exposures are hedged, and how the treasury function itself is organised. Phillips International Consulting provides treasury advisory to Australian mining companies, from establishing a first treasury framework through to restructuring complex multi-bank, multi-currency treasury operations.

Who It Is For

This service is for Australian mining companies that are scaling rapidly and need to build treasury capability; companies with complex FX or commodity price exposures that are not currently being managed systematically; operators dealing with multiple banking relationships across different jurisdictions; and mining companies that recognise their treasury function is consuming management time and creating financial risk, but lack the internal resource to fix it. We provide advisory and design services — we are not a bank and we do not hold funds.

Cash and Liquidity Management

For mining companies — particularly those in development or early production — cash management is often the most critical treasury function. Mines consume cash heavily during ramp-up, and the difference between a well-managed and poorly-managed cash position can be the difference between a smooth operation and an emergency refinancing. We advise on cash flow forecasting frameworks, liquidity buffer sizing, cash sweep and pooling arrangements, and the banking infrastructure needed to support efficient cash management across multiple entities and jurisdictions.

Banking Architecture and Relationship Management

Many mining companies end up with a banking relationship structure that has evolved organically rather than been designed — multiple banks across multiple facilities, often with overlapping or conflicting security arrangements, inconsistent covenant packages, and no clear primary relationship. We help companies design and implement a banking architecture that is fit for purpose: the right number of banking relationships, clearly defined roles for each bank, and a covenant and security structure that preserves flexibility. We also advise on banking relationship management — how to communicate with your banks, when to bring them information, and how to manage difficult conversations.

Commodity Price Hedging

Commodity price volatility is an inherent feature of mining — and how that volatility is managed (or not managed) has a direct impact on the company's ability to service debt, fund capital expenditure, and meet covenant thresholds. We advise on:

Hedging policy design — how much to hedge, over what tenor, and in what instruments
Instrument selection — forwards, options, collars, and more complex structures where appropriate
Lender-required hedging — meeting the hedging requirements embedded in debt facilities
Hedge accounting — working with your auditors to ensure hedges are accounted for correctly

Foreign Exchange Management

Australian miners selling product in USD while carrying costs in AUD face a structural FX mismatch that, if unmanaged, can create significant earnings volatility. The AUD/USD rate has historically moved substantially over mining project cycles. We advise on FX exposure identification, natural hedging opportunities, forward cover programs, and where appropriate, more structured FX hedging arrangements. We also advise on FX management for companies with multi-currency operations across multiple jurisdictions.

Treasury Operating Model Design

As mining companies grow, the treasury function needs to grow with them — but many companies underinvest in treasury capability until a crisis makes the gap obvious. We help companies design treasury operating models that are right for their size and complexity: the right policies, the right technology, the right controls, and the right level of internal resource versus outsourced advisory support. This includes treasury policy documentation, delegation of authority frameworks, bank mandate structures, and treasury management system selection.

Let's review your treasury setup.

We work with Australian mining companies and contractors at every stage. Reach out for a confidential, no-obligation conversation.

Perth, Western Australia — serving clients Australia-wide

Matt@phillipsint.com

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