HEDGING – BACKED ASSET REVITALIZATION HELPED THE…

Managing Financial

MetallicsCo.* was experiencing a serious dilemma as they planned to go for infrastructure revitalization and restart their operating line. They approached Metal Edge Partners to de-risk their organization against the downsides of asset revitalization and position them favorably in the competitive steel marketplace.

Our Approach

Metal Edge Partners provides our clients with a customized Market Analytics Dashboard where they can get Macro Analysis and Commentary, Market Data including proprietary Databases and expert view of commodity market price for informed and timely decision making.

Our Market Data tool aided MetallicsCo.* to study and ascertain optimum volume throughput from an asset to revitalize it. We recommended the client to utilize the Futures contract to secure themselves against any downsides.

We tapped the forward markets to draw estimates of total maximum revenue at time of revitalization which helped the client access liquidity in financial market and hedge pricing for a portion of sales which helped them establish a high predictability for returns on the project.

Results

Our client’s plan for asset revitalization and restart their operating line doesn’t result in big shocks or surprises. The predictability provided by our Market Data tool allowed MetallicsCo.* to establish a stronger credibility for both the commercial as well as the financial teams.

*We take our client’s confidentiality seriously. Referrals are available on request.

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