Assignment On kingsrose Mining

Running head: ECONOMICS
KINGSROSE MINING LIMITED
Economics
Assignment
10/29/2019

ECONOMICS 1
Table of Contents
Introduction................................................................................................................................2
Background information on Kingsrose Mining Limited........................................................2
Product cost and scale............................................................................................................4
Macro Business Environment................................................................................................4
Political Force....................................................................................................................4
Economic Force.................................................................................................................5
Demand in Recession.............................................................................................................6
Problems for Kingsrose Mining Limited...............................................................................7
Sustainability Practices..........................................................................................................8
Environmental Awareness.................................................................................................8
Health Safety Awareness...................................................................................................9
Community Engagement....................................................................................................9
Benefits of Sustainable operations...................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................13

ECONOMICS 2
Introduction
A market analysis explores the dynamics and attractiveness of a specific market in a
specific industry. It is said to be the portion of the industry analysis and thus in turn of the
global analysis of the environment. Through this analysis, the available opportunities,
weaknesses, strengths, and threats of a business can be recognized. Finally, with the help of
these details, the appropriate strategy of business will be determined. The market analysis is
also called as the accepted market investigation that is utilized to notify the planning
activities of a business, specifically related to the decisions of purchase, facility expansion,
inventory, promotional activities, workforce expansion or contraction, purchase of capital
equipment, etc. (Gelos, Sahay & Sandleris, 2011). The intent of this study is to produce a
business report for Kingsrose Mining Limited in order to identify some of the vital aspects of
the company which is involved in the production, exploration, and development of gold and
silver deposits. To do so, the report is explaining the impact of micro and macro factors on
the performance of the company. Along with this, the paper is highlighting the sustainable
practices that the company has adopted in order to know its contribution to the development
of the society and environment.
Background information on Kingsrose Mining Limited
Kingsrose Mining Limited is based in Australia and engaged in the production,
examination, and development of its silver and gold deposits at the project of Way Linggo in
the region of South Sumatra, Indonesia. The company majorly operates in the segment of
gold and silver extraction. It produces silver as well as gold dore under its project of Way
Lingoo in Indonesia that is locally refined in Indonesia for the production of the silver and
gold granules (Reuters, 2019). The Way Lingoo project of the company is placed on the
mineralized Trans-Sumatran fault the part of the Pacific Rim of Fire. The business is

ECONOMICS 3
involved in the production from its second mine over the project area, Talang Santo. The
Talang Santo is established in the bunch of epithermal veining and is located around 17
kilometers from the processing plant of Way Linggo (Market Screener, 2019). The mine of
Talang Santo is comprised of the Splay vein, Mawi vein, and Hanging Wall vein. Kingsrose
Mining Limited concentrates on the areas, comprising Way Handa, Petai Kayu, Talang
Cluster, Mitra Jaya, Talang Tebat, Rowo Rejo, and Sindang Jaya in the project of Way
Linggo. The customers of the company are the insiders, shareholders, and government
organizations. Further, the company deals with competition from number of businesses who
are giving close competition like International Tower Hill Mines (Canada), Beadell
Resources (Australia), Aurion Resources (Canada), Tanzanian Royalty Exploration (Canada),
Probe Metals (Canada), Vango Mining (Australia), Bardoc Gold (Australia), Rupert
Resources (Canada), White Gold (Canada), etc. (Market Beat, 2019). All the close
competitors of the company are mainly located in Canada and Australia and operate their
business at different locations for the extraction of gold and silver.
The market share of the Kingsrose Mining Limited in the gold and silver mining
industry is 6.67% which has been gained by the company through its huge efforts to grab
different projects like Way Linggo (24hGold, 2019). Besides this, the market share covered
by its competitors like Orezone Gold Corporation is 12.50%, Aurion Resources Ltd. is
3.33%, and International Tower Hill Mines is 0.52% (Yahoo Finance, 2019).
Perfect competition is said to be a type of market structure where there is an increased
number of sellers as well as buyers who are involved in the buying and selling of similar
products at a similar price in the market. Besides this, perfect competition is also called pure
competition, which exists in the market when there is no direct rivalry between the
competitors and all are involved in vending similar products at the same price (Thampapillai,
2010). The Kingsrose Mining Limited operates under the market structure of perfect