19/07/2005 - 22:00

EY, Deloitte win audit work

19/07/2005 - 22:00

Bookmark

Save articles for future reference.

The global nature of the mining sector has been reflected in the local audit market, with Paladin Resources the fourth major Western Australian company to appoint a new auditor this year.

EY, Deloitte win audit work

The global nature of the mining sector has been reflected in the local audit market, with Paladin Resources the fourth major Western Australian company to appoint a new auditor this year.

Paladin replaced second-tier firm RSM Bird Cameron with Ernst & Young, to become the second big new corporate account for EY, the biggest external audit market player  in Western Australia.

EY has also been appointed external auditor of Calibre Projects Pty Ltd, a private engineering consultancy that has experienced rapid growth since its establishment in 2002.

With annual turnover of $41.5 million and nearly 400 staff, Calibre was the fastest growing private WA company in this year’s WA Business News Deloitte Rising Stars survey.

Deloitte has been a big winner in the audit market this year, securing three major new clients – nickel producer Minara Resources, iron ore miner Portman and mineral sands producer Ticor.

In each case, Deloitte was appointed to the Australian companies because of changes adopted by its existing international clients.

For instance, Deloitte is the auditor of US company Cleveland-Cliffs Inc, which this year acquired just more than 80 per cent of Portman.

As a result, Portman’s board decided to appoint Deloitte as the company’s auditor.

Similarly, Deloitte is the auditor of Swiss company Glencore, which owns nearly 50 per cent of Minara.

Glencore has started consolidating Minara’s results into its group accounts, and Minara has changed its balance date to December 31 to align with Glencore.

As part of this process, Deloitte has been appointed auditor of both Minara and the Murrin Murrin joint venture, which is owned by Minara and Glencore.

A third similar move was Deloitte’s appointment last year as auditor of Ticor. This followed the move by South African firm and Deloitte client, Kumba Resources, to a 51 per cent shareholding in Ticor.

(Kumba recently announced a proposal to move to 100 per cent ownership of Ticor.)

Paladin Resources said this month it was changing auditors: “Due to the inability of the Canadian member firm of RSM International to provide the professional services required by the Paladin Group.

“This arises due to the company’s listing on the Toronto Stock Exchange and the requirement to prepare a Canadian GAAP reconciliation,” it said in a statement.

Paladin managing director John Borshoff said he was very happy with the service provided by RSM locally but the firm couldn’t meet the international service hurdles.

Paladin has grown rapidly over the past two years, as investors have recognised the commercial value of its uranium assets.

It is preparing to develop the Langer Heinrich uranium project in Namibia, Africa, and recently appointed engineering firm GRD Minproc to complete a bankable feasibility study on a second uranium project, in Malawi.

Mr Borshoff said Paladin needed an audit firm that was represented in all of the countries it was currently operating in or planning to operate in.

 

 

•           Paladin Resources: RSM Bird Cameron to Ernst & Young.

•           Calibre Projects: Ernst & Young (new appointment).

•           Minara Resources: KPMG to Deloitte.

•           Portman: Ernst & Young to Deloitte.

•           Ticor: KPMG to Deloitte.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options