African Mining January 2023 | Page 59

FINANCE • the internet in the same way they would using any other cryptocurrency , but without the volatility risk .”

As such , more businesses are using stablecoins to improve cashflow , especially when trading within the global export market , and de-risking the business in relation to fluctuating currency prices .

“ Another major use case emerging within South Africa is the potential for arbitrage due to exchange control regulations ,” continues Olivier .

“ Cryptocurrencies tend to be more expensive in South Africa compared to the rest of the world . As such , when you import and liquidate stablecoins to rands via an over-the-counter desk or exchange , the additional value this generates can often cover transaction fees .”

And an additional potential application highlighted by Shaun Vorster , audit partner at Mazars in South Africa , relates to asset ownership .

“ The tokenisation of real-world assets by issuing shares on a blockchain opens up unique opportunities for businesses , including those in the mining sector ,” says Vorster .

This model has gained popularity following the popularisation of issuing non-fungible tokens , or NFTs to secure ownership or a share in various assets .

“ However , beyond the gimmicks of NFT art and consumer goods , real-world applications allow businesses to set up interesting ownership structures to sell shares or raise funds by tapping into the global marketplace .”

Vorster offers a recent real-world example where Mazars consulted on a gas supplier that tokenised hydrogen gas reserves as a capitalraising initiative .

“ Hydrogen gas has no real open market , like gold . Now , anyone who buys a token can redeem fair value at the depot by collecting the commensurate amount of hydrogen . By introducing this demandsupply dynamic within the local market , the company effectively created a spot price for hydrogen gas .”

These tokens should appreciate in value over time , offering financial benefits to the buyers while serving to raise capital for the company to further invest in plant expansion to increase capacity .

“ It ' s a win-win and this application could apply to any resource , even those already traded in the open market by offering fractional ownership opportunities ,” elaborates Vorster .

A more relevant and practical application is the ability to facilitate fast and secure peerto-peer ( P2P ) payments over the internet at a lower cost .

“ As such , mining companies should work with experts in this field to consider how they could leverage tokenisation to raise capital at a lower cost and through faster fund-raising cycles than traditional channels for further growth and expansion ,” he concludes . •

Wiehann Olivier , digital asset lead and audit partner at Mazars in South Africa .

Brief introduction : Wiehann Olivier : Olivier joined Mazars in 2010 after completing his Accounting Degree at the University of Stellenbosch . He then obtained his Honours Degree in Accounting and Auditing from the University of South Africa and qualified as a Chartered Accountant ( SA ) in 2014 .

Olivier obtained experience in commerce working for the Maitland Group ’ s Private Equity and Real Estate division and international experience working for Mazars New York . He services a variety of clients in various industries , with a focus on digital assets and is Mazars South Africa ’ s Digital Asset Leader .

He has been involved in the digital assets industry for over 4 years , which stemmed from his involvement in various industries including financial services , property and private equity funds . Wiehann has completed a blockchain and innovation course through MIT and is currently enrolled for an MSc in Blockchain and Digital Currencies . His experience in the crypto industry includes consulting and assurance engagement services for cryptocurrency exchanges , cryptocurrency custodian wallets , staking , ERC20 fund structures and cryptocurrency bundle investment platforms in South Africa , Singapore , the US and UK .

Wiehann has experience in auditing clients involved in the following sectors / industries : Digital Assets ( Cryptocurrencies ); Financial Services ; Private Equity and Property Funds ; Property Development ; Manufacturing and retail . He has professional memberships in SAICA ( South African Institute of Chartered Accountants ); IRBA ( Independent Regulatory Board of Auditors ) and C4 ( CryptoCurrency Certification Consortium ).

Shaun Vorster , audit partner at Mazars in South Africa , relates to asset

Mazars Mazars

Shaun Vorster : Vorster is an Audit partner at Mazars in South Africa . He serves as a member of the Exco committee at Mazars in Gauteng , a member of the Mazars in South Africa Governance Council and chairperson of the Audit and Assurance Standards Committee . He specialises in the audits of large transnational groups and public interest entities and has audited a wide range of clients across his 20 + year career including clients in the pharmaceutical , retail , telecommunication and construction industries , with extensive experience in implementing practical audit approaches and solutions in the audits of business combinations and acquisitions .