When WesTrac customer Big Yellow Mining (BYM) established and intended to grow its business, the team knew that minimising capital costs was paramount.
But like many businesses requiring large capital outlay, BYM faced a catch-22 situation, needing the equipment to generate revenue that could then be put back into the business.
That is why the new mining contracting business opted for WesTrac Heavy Rental rent-to-purchase option (RPO). Using this option, they rented six Cat 777E Off Highway Trucks for an initial 12-month period.
One of the biggest benefits of this rental option is that when clients are ready to make the outright purchase, they have built a level of equity in the asset from the rental already outlaid.
According to Big Yellow Mining Operating Director Mitchell Wallace, this model provides an effective and flexible option for businesses.
“Regardless of what type of heavy machine I need for a project, WesTrac is bound to have suitable options for me to choose from,” Mitchell explained.
Mitchell said partnering with WesTrac through the RPO enabled the company to invest in other areas of its operations while having access to the latest heavy equipment and unparalleled technical services and support.
“As a new, private company, Big Yellow Mining does not have access to capital markets for funding and did not have the operating history required by the banks,” he said.
“Rent-to-purchase removes certain elements of risk, especially when embarking on a new startup mining services venture, by minimising upfront charges.”
WesTrac Account Manager Richard Otway said WesTrac had a wide range of heavy machines on offer, ranging from excavators to large off highway trucks, to deliver numerous benefits to the mining industry.
“Whatever the needs are, WesTrac Heavy Rental can come up with a rental solution that meets them,” Richard explained.
BYM was founded in 2021 by Mitchell and fellow mining executives Brad Gordon and David Edwards. Located in Welshpool, Western Australia, the business specialises in providing innovative mining services throughout Australia.
The company was formed to meet a gap in the market, providing operational services for small to medium-sized mining enterprises that may also require technical expertise, management and leadership.
Mitchell said BYM was a ”people business”, with the leadership team being passionate about people and culture while fostering genuine partnerships with clients and suppliers.
For more information on WesTrac Heavy Rental, click below.
Big Yellow is an innovative Perth based company offering mining services throughout Australia.
Big Yellow was formed to meet a gap in the market where small to medium sized mining enterprises require a mining services company that also provides the leadership, technical expertise, and management they need.
Because we offer a wider range of services, low capital options and the flexibility that other contracting companies don’t, we are ideal for exploration companies that have discovered a deposit and want to become a producer or small enterprises that require the technical expertise or management to take operations to the next level.
Big Yellow has committed to contributing 5% of profits to the community and is proud to proactively support Aboriginal communities and employment.
