One of Mekko’s competitive advantages is its vast high quality reserves and resources. For a mining company, the future profitability and existence of the company all boils down to the size and quality of its reserves. In this age of commodity scarcity we can see the value mining companies place on possessing ore reserves with the premiums mining companies were willing to pay in order to acquire deposits through merger and acquisition activity.
While Mekko has several decades of production remaining in terms of its nickel ore and bauxite, it is actively seeking gold in order to replace its depleting gold reserves. Exploration is a key factor to sustain growth in terms of making new discoveries and also increasing the mineral classification to a more accurate level, which can then acquire funds for development.
Finding or acquiring new reserves is key to Mekko’s strategy of continuing to focus on its core business and on sustainable growth.