Our first case this week is the bre-x minerals case. in april 1997,

Our first case this week is the Bre-X Minerals case.

In April 1997, Bre-X Minerals, a Canadian company, was supposedly one of the most valuable companies in the world. Bre-X had reported the largest gold deposits ever discovered. It was hailed as the mining find of the century. The gold mine, located on a remote island in the East Kalimantan Province of Indonesia, supposedly had so much gold that the actual price of gold on the open market dropped significantly due to the anticipation of an increased gold supply. Within a few months, thousands of Canadians – big-time investors, pension and mutual funds, and many small investors, including hardware store owners and factory workers – got caught up in Bre-X fever. The company’s stock price shot from pennies to more than $250 per share before a 10-for-1 stock split was announced. Thousands of investors believed they were on the verge of becoming millionaires. The story took a sudden turn for the worse when Michael de Guzman, Bre-X’s chief geologist and one of only a handful of company insiders entrusted with the mine’s core samples, apparently committed suicide by jumping out the back of a helicopter.

The following is a description of the Bre-X Gold Scandal,

The search for a jungle ElDorado is over; the search for culprits in an astounding gold mine fraud has begun. Investigators opened investigations into how Bre-X Minerals, a tiny exploration company from Alberta, Canada, managed to convince countless experts and investors that a tract of land in Borneo contained the biggest gold find of the century.

After two years as a stock market superstar, Bre-X was suddenly a pariah after an independent consulting company reported that the Busang site was worthless. It said the sands of seemingly promising crushed rock core samples collected by Bre-X had been doctored with gold from elsewhere in a scam “without precedent in the history of mining.”

Partners in the Indonesian project promptly jumped ship The Indonesian government, which held a 10 percent stake vowed to punish whoever was responsible. New Orleans- based Freeport-McMoRan Copper & Gold—which first cast doubts on Busang’s value—said it was withdrawing from its planned partnership with Bre-X. The company that reported the fraud, Strathcona Mineral Services, did not attempt to fix blame for the tampering but offered to assist in subsequent investigations. Industryanalysts said it seemed clear that some senior Bre-X personnel were involved, but there was no consensus whether the culprits were Canadian-based executives, geologist in the field, or both. Mining analysts say only a small amount of gold—perhaps a few pounds—would have been enough to doctor the Bre-X samples to make them appear that the Busang’ mine was a world-class gold deposit. Bre-X’s president, David Walsh, who launched the Busang project from his Calgary basement while bankrupt in 1993, expressed shock at the evidence of tampering and said his company would conduct its own investigation. Walsh, 51, sold off some of his Bre-X shares last year, along with other senior company officials, who together reaped more than $56 million in profits. They have been targeted by at least eight class-action lawsuits in Canada and the United States, alleging that Bre-X executives misled share holders about Busang’s potential while selling off some their own shares.

We have a lot of questions we can discuss for this case. Let’s start with the questions below. Pick one or two of the questions below to respond to.

  1. Assume you are a financial analyst who works for a major brokerage company that is heavily invested in Bre-X Minerals.

In what ways would investigating management and directors help determine the value of Bre-X’s gold prospects?

In what ways would investigating the company’s relationships with other entities help determine the value of Bre-X’s gold prospects?

In what ways would investigating the organizations and its industry help determine the value of Bre-X’s gold prospects?

In what ways would investigating the financial results and operating characteristics help determine the value of Bre-X’s gold prospects?

  1. How were the gold industry and Canadian stock markets affected by this fraud?
Punctual Essays
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.