Predicting the Failure of Developmental Gold Mining Projects

This paper investigates firm-level financial and non-financial information and their association with project failure for a sample of pre-production gold development firms. Pre-revenue generating 'single project' mining companies are chosen, since project failure is synonymous with company failure for these firms. The setting is interesting due to the high information asymmetry and limitations of the GAAP-based Altman Z-score in this context. A definition of project failure is applied and both financial and non-financial predictors are compared. Failure is driven by whether the deposit is open pit or underground, and whether the cash cost of production is disclosed at feasibility completion. © 2011 CPA Australia

Labor Demand and Information Technologies: Evidence for Spain, 1980-2005

Using the EU KLEMS dataset we test the capital-skill complementarity hypothesis in a cross-section of sectors in Spain between 1980 and 2005. We analyze three groups of workers, who are classed according to skill level: high, medium and low. Capital assets have been broken down into ICT (information and communication technologies) assets and non-ICT assets. Acquisition and usage costs of ICT assets declined throughout the period studied, both in absolute terms and relative to the other capital assets and workers. Our principal finding is that the substitutibility between workers and ICT assets falls as worker skill level rises. In fact, the ICT assets were strongly complement with highly skilled workers and were not substitutive with them. Throughout the period analyzed, the fraction of employed medium- and high-skill workers rose by 21% and 12%, respectively, to the disadvantage of low-skill workers. After decomposing these changes, we found that the latter were dominated by an ajustment within sectors more than by a composition effect or adjustment between sectors. These adjustments may be explained by reference to the estimated elasticities of substitution.capital-skill complementarity, ICT, translog cost function, elasticity of substitution.

Your Governance or Mine?

In response to criticism directed at the resource sector's corporate governance, this paper examines the corporate governance and underlying firm characteristics of resource development stage entities (DSEs) relative to a size-matched sample of non-resource firms. We find that resource DSEs have different governance characteristics in the measures of board independence, chair/CEO duality and CEO cash bonuses. Furthermore, there are differences in the information environment measures of analyst following, debt levels, stock market return and stock turnover. Considering we document substantial differences in underlying firm characteristics, corporate governance differences are likely appropriate to the mining industry and should not be uniformly labelled as 'bad'. Our results suggest that media rankings based on corporate governance scores may not accurately portray the resource sector. Overall, our results are of interest to Australian investors and regulators and contribute to a broader understanding of contextually contingent corporate governance. © 2011 CPA Australia

Surface disinfection challenges for Candida auris: an in-vitro study

The emerging pathogenic multidrug-resistant yeast Candida auris is an important source of healthcare-associated infections and of growing global clinical concern. The ability of this organism to survive on surfaces and withstand environmental stressors creates a challenge for eradicating it from hospitals. A panel of C. auris clinical isolates was evaluated on different surface environments against the standard disinfectant sodium hypochlorite and high-level disinfectant peracetic acid. C. auris was shown to selectively tolerate clinically relevant concentrations of sodium hypochlorite and peracetic acid in a surface-dependent manner, which may explain its ability to successfully persist within the hospital environment