Mining Equipment

Mining Equipment

Centrelease has developed a profile in arranging lease and other funding solutions for mining equipment. Our experiences range from single acquisitions as low as $50,000 up to $750 million portfolios of mining equipment. Through our hands on approach from start to finish, we will liaise with your company finance executives and the suppliers of the mining equipment assets you select to ensure timely delivery and effective financing. Equipment sourced locally or direct from overseas suppliers can be efficiently handled and financed.

 

Some of the options available with our leasing/rental product include:

  • Fully maintained lease/rental agreement.
  • Guaranteed high availability/performance of equipment.
  • Lease terms 12 months to 10 years+.
  • Fixed rental charge for use of the asset for the duration of the lease term.
  • Maintenance component based on fixed per hour Wheel Rate, adjusted annually against pre-agreed indices movements.
  • Maintenance programme based on whole of life approach and following manufacturers recommended service requirements.
  • Rental and Wheel Rate Rebates offered where availability/performance levels below pre-agreed thresholds.

Benefits of leasing/rental product include:

  • Cash flow preservation. No upfront capital procurement or capital expenditure charge required to control and operate the equipment.
  • Attractive balance sheet treatment (i.e., rental obligations are treated as notes to the accounts).
  • Generally not tying up existing banking lines.
  • Fixed and known payment stream, ideally suited for bidding renewal or new supply contracts.
  • Variable versus long term fixed cost structure of asset ownership.
  • De-risking the Lessee’s business and ability to return assets at the end of the lease term at no cost.
  • Lessee not taking residual value risk on the equipment.
  • Removes non-essential technological risk from the business.
  • Lower Weighted Average Cost of Capital Cost than direct ownership.