Capital Allocation
Improve project go/no go decisions and reduce the risk of expensive capital allocation errors.
The vast majority of a mine’s capital and operating costs are effectively locked in by decisions made in the first 5-10% of the project life cycle [1] – at prefeasibility and feasibility study stages. Large, and often irreversible, decisions must be made when knowledge is at a minimum and viable projects can be abandoned based on incorrect assumptions. Up to 80% of greenlighted projects can fail to deliver the expected returns [2]. As mining projects become larger, more complex and more remote, improving the accuracy of study stage assessments becomes even more urgent.
We work with clients from those early stages to improve accuracy and insight along the entire project life cycle. Rather than the traditional gut-feel-and-spreadsheet approach, we use advanced data science and our secure, cloud-based technology, Dynamic Driver Modelling, to build a prototype, digital twin model that will grow with the project.
As the project progresses, initial, manually-input base assumptions are replaced by applying machine learning to near-real-time data feeds that will support near-real-time decision-making.
Critically, from an early stage, the model can instantly run and compare scenario analyses based on different capital decisions and plant configurations; changing operating variables such as ore grade, recovery rate or operating hours; and market conditions such as energy or gold prices. The idoba model improves the quality of project go-ahead decisions and of capital allocation decisions within the project.
Our solutions can help you:
Improve capital allocation
Produce more robust, data-informed go/no go project decisions and enable better in-project capital purchase decisions.
Evaluate alternative scenarios
Rapidly test different configurations and base assumptions to produce optimal prefeasibility and feasibility studies.
Make better design decisions
Continually test and tweak set-up configurations in light of changing conditions and initial, live-running data.
Drive better cross-team comprehension
Use intuitive, visual dashboards of revenue, costs, capital, cashflow, production and NPV to bridge the worlds of engineering, finance and the exec team.
Manage life cycle performance
Review initial decisions and assumptions, monitor live performance, and improve modelling along the full project life cycle.
Audit and improve decisions
Re-run and learn from past decisions. Improve transparency and confidence with a full audit trail of inputs, assumptions, criteria and changes.
Optimise capital allocation decisions for a world of larger, more complex projects and tighter capital.
idoba solutions in use
Improve your capital project decisions.
Speak to our Solutions consultants, today.