BUSINESS PLANNING
Minxcon’s team from various disciplines which include geologists, mining engineers, mechanical engineers, metallurgists and mineral economists possesses the skills and experience to compile operational level business plans for mines and processing plants. They are able to assist mine management teams with their business planning activities or are able to lead the complete process to build a fully integrated business plan on behalf of the client. Moreover, the approach is flexible and will be tailored to meet the unique requirements of the client.
Generic business plan components
- Resource model – The first step of the planning process is to ensure that the most accurate and up to date resource model is available for mine planning purposes.
- Planning guideline – The planning guideline needs to provide broad planning guidelines to the operational team to be able to meet the overall corporate strategy and requirements. Important financial parameters like commodity price forecast, currency assumptions, salary increase assumptions and inflation assumptions need to be set as well.
- Mine plan – The minimum requirement for a sound business plan is a 2 year detailed operational mine plan, scheduled monthly. However, it is important to ensure alignment with the long term strategic plan. Planning can be done on CAD software or on paper plans.
- People plan – Once the mine plan has been finalised, the people requirements for all departments can be estimated accurately, new complements can be set and planning to align actual complement with required complements can be done.
- Contractors – Planning and budgeting for contactors would coincide and be part of the people planning process.
- Consumables – The materials required for all departments can be also be estimated accurately once the mine plan has been finalised. Material lists and budgets can be determined for each department.
- Equipment plan – Equipment requirements for mining and mining related infrastructure can also be estimated accurately once the mine plan has been finalised.
- Utilities – Water and electricity consumption can be accurately estimated from the mine plan.
- Renewals and Replacements – Scheduling and provision for the replacement of some equipment and the refurbishment of other equipment and infrastructure needs to be budgeted for accurately.
- Overheads – Provision needs to be made for indirect cost allocated to the operation but not within the control of the operation.
- Financial Plan – An integrated financial model is required to consolidate all the cost estimations from budgeting processes listed above and to culminate in a cash flow forecast. The model would also require to cater for tax, royalty and other obligations.
Our services
- A complete service – Compile the entire business plan; including resource modelling and mine planning on behalf of the client
- Business plan consolidation – Utilise the resource model, mine plan and other estimations as provided by the client and consolidate it in an integrated model with logical and user-friendly outputs.
- Partial services – Assist the clients with portions of the business plan e.g. mine planning or operating cost estimation etc.
- Management – Assist the client by providing guidance to the operational team to develop their own Business Plan.