Being a public company, FEES Limited holds much advantages pertaining to its internal strength. First and foremost management expertise and management experience have claimed to be the most precious assets and resources of the organization. The professional background of all the directors including the two mining entrepreneurs, the uranium geologist Rebecca Paula points out that they all experienced in their domain. The good decision making within the organization could be a determining actor to the success of the company.
The exploration company at present seems well capitalized with the $4000000, despite the fact that FEES Limited is a small company. Its finance for capital investment is quite promising. Interest on the capital would be a major source of revenue for the company. In addition the firm is not related to any debt; therefore this can pave the way for the investment projects. The company would now attract foreign investors and this would mean access to substantial capital sources.
There is an ever increasing need for the company to spend money on recruitment. Present condition shows that there are no current employees as what makes up the workforce is only the accountant clerk, Lyn Hopkins. This fact cannot be denied that experienced geologist and entrepreneurs and the other director would contribute enormously to the cost of the business. In the long run of the business, they would need the advices and expertise of other employees like for example a board to accept or refuse any proposals.
This may counteract the risk of undertaking capital investments which is slightly higher at present. Indeed there is only one source of revenue for the business that is the interest. To be a public company has its own problems. It is not unknown for the original owners to lose control of the company. This is mainly due to the divorce between ownership and control. Moreover investors are bound by “short-termite”. This could be of disadvantage for the long term investment plans of the business.
Opportunities: Opportunities do exist for FEES Limited which already holds uranium exploration eases in Tahoe found in Niger and Gao found in Mali which are the two central African countries. Further leases have been offered in Niger which may increase the chance of finding uranium. The company also has a few small uranium prospects in Western Australia which is in Wiling. All these aspects represent opportunities for the company to go ahead with the capital investments however the best opportunity taken will contribute best to revenue.
It is to be noted that those three areas have never been explored by modern technological methods. The last investigation on the African prospects goes back in the sass’s and it is argued that what were found were very promising. For instance the opportunity to go further in Niger is higher compare to Mali. There are also open doors in Algeria whereby a promising territory is being sold.
Threats: There are also risks and limitations associated with the different opportunities. For example, regulations for the few small uranium prospects in Western Australia, SWOT analysis By contains order to keep the leases.
Despite there is an offering of another lease in Niger, Rebecca declared that this lease would offer less than the previous one. Being a public company would now imply adhering to all government regulations, for example the company would have to spend more on certified public accountants. FEES Limited has to publicly disclose nearly all financial information. As a consequence, this could attract new competitors and the results could lead to less privacy in business affairs. Indeed to seize the opportunity in Nigeria is not without limitations.