Allan Rey B.

Aventurado
MBA103

Solution:

Examining the Q3 results in excel, it shows that the data is not normally distributed because the single
peak is not in the middle – more inclined to the left. This situation merits the use of nonparametric method
to compare performance between different periods. Thus, the use of Wilcoxon test.

Wilcoxon Test
If p-value or level of significance is less than .05, means that there is a significant difference. Since p-value,
as shown in the calculation, is zero there is a significant difference on the financial performance of West
Mining during the two quarters – 3rd quarter and 4th quarter.

Analysis/Recommendation

Given that West Mining has already done considerable work in complying the requirements of regulatory
bodies for it to obtain permission to operate, I believe it is safe to say that there is no risk there. Though
the extra-curricular studies being done for the environment is taking a toll on its operating expenses, it is
something that is necessary in exchange to the potential danger it could bring to nature as well. It should
be managed, however, that initiatives are not put to waste since material amount of money is invested
there.

The figures that will be disclosed to the public will somehow affect its performance in the stock market
given that during the last quarters, there was a noticeable increase in the operating expenses. It will surely
arouse curiosity from stakeholders and may lead to a possible decrease on its stock market value – this is
the financial risk.

Looking at the financial statements, it is good to note though that there is still an increase in income
despite the increase in operating expenses. This could also mean that despite the expenses brought by
permit approval, the company can still thrive to improve its bottom line.

The extra initiatives which West Mining has decided to undertake to ensure regulatory bodies that they
are going beyond the minimum requirements can be a good mitigating step to decrease the risk of the
negative impact the evident increase in operating expenses could bring. West Mining can make use of a
good publicity that more than the obtaining of operational permit, they are more concerned of the welfare
of their surrounding environment and communities. This will earn them good image especially that
environmental issues brought by mining are prevalent now.