Summary—110
A spun-off regional gold company was trying to cope with an extremely high cost structure, an aging equipment fleet with a utilization rate of less than 50%, and excessive inventory levels. The new company’s management team was tasked with focusing the organization or face closure.
To affect a company turnaround, we performed a detailed analysis of current operations. Production levels were benchmarked and improvement opportunities were prioritized. A comprehensive roadmap for upgrading the fleet was designed so that production could be taken to the next level toward industry standards. A plan was put into place to lower the company’s cost structure by 20%.
Challenges
- Coordinating the management efforts of the new executive team with top tier managementCoordinating the management efforts of the new executive team with top tier management
- Mining a low grade deposit with a high cost structure
- Identifying a roadmap that could maximize the value of the mining asset
- Operating an aging equipment fleet with a utilization rate of less than 50%
Results
- 100% improvement in internal synchronization between exploration, mine planning, operations, maintenance, processing and materials management 100% improvement in internal synchronization between exploration, mine planning, operations, maintenance, processing and materials management
- $3.5 million fleet refurbishment completed within 4 months
- 300% increase in mean time between stoppages
- 50% improvement in utilization
- 20% targeted cost reduction