Private equity firm Agile Capital continues to search for investment opportunities, including in outsourced mining businesses.
Agile Capital CEO Tshego Sefolo explains that outsourced mining services plays a critical role in the mining industry. Therefore, the company aims to invest in businesses that can facilitate long-term growth in the industry and provide quality expertise for mining companies.
Outsourced mining services enables mining houses to focus on their core competencies and gain access to specialist skills and expertise in areas outside of their traditional ambit.
Sefolo says outsourced services are becoming more critical, owing to the cost of mining, which its a key consideration for the mining houses as this has direct impact on profitability and bottom line performance.
Agile Capital has invested in several businesses in the outsourced mining services sector such as mining and construction services provider Provest, which provides underground blasting and cementation, as well as in engineering consultancy firm BBE Consulting, which is “arguably the largest independent ventilation projects and consultation in South Africa”.
The company has also invested in environmental consultants company Aquatico, which specialises in water testing solution for the industry.
Sefolo explains that, as an astute investor in the market, Agile Capital ensures that its businesses are adequately capitalised to meet their strategic objectives.
The company works closely with management teams to ensure that it builds “world-class” businesses predicated on good governance and focused solutions.
“The businesses we invest in also boast significant empowerment credentials when compared with their peers because we drive that initiative aggressively,” he adds.
Further, the recent increase in commodity prices is likely to result in growth and investment opportunities in the mining industry.
However, such opportunities depend on major players and South African mining houses’ willingness to ensure that the outsourced mining services sector remains commercially compelling. Stakeholder and mining houses should evaluate the benefits of growth in the sector as understanding these benefits can encourage stakeholders and mining houses’ willingness and interest in the sector.
Failure to do this will be detrimental to the industry’s long-term growth, with the sustainability of industries, and businesses within those industries, also a key consideration, particularly in South Africa, notes Sefolo.
Agile Capital has invested in diverse segments of the South African economy. The company is continuously looking for investment opportunities, including in the mining services industry, where there is a compelling investment case.
Sefolo concludes that the company is well positioned to generate long-term sustainable earnings and equity returns.