Case studies
The following case studies highlight how Accumine can change your organisation’s cost modelling so you spend time analysing not modelling.
Open pit life of Mine modelling
The problem
A large open pit mine required the development of a life of mine costing model to assess various life of mine planning options.
The task required a large number of diverse options to be assessed. The current tool required repeatedly copying and saving spreadsheets. A more efficient framework was required to allow understanding of the value drivers between the operating strategies.
Our solution
An Accumine model was developed for operating and capital cost estimates for the life of mine options. The mine production and equipment schedules were undertaken within a mine planning system and interfaced into Accumine using standardised CSV files. These inputs along with other modelling inputs were used to develop a detailed, first principles build up of operating costs and equipment capital. This information was interfaced into a corporate valuation model and analysis was undertaken in PowerBI.
The Accumine solution allowed ten different operating scenarios to be run on a single model, meaning only one framework had to be maintained and updated allowing more time for analysis.
Why Accumine?
A common framework for multiple scenarios
Generating a new operating scenario was simply a click of a button – to copy an existing scenario and importing revised physical and equipment schedules.
Analyse options with an integrated package
Accumine was integrated to a PowerBI analysis package that allowed the modeller to validate inputs/outputs and understand key drivers between scenarios.
Easily standardise and share data with others
Having both Accumine and PowerBI web based allowed data to be easily shared with multiple people. Additionally, a standardised CSV output could be fed into the client’s corporate valuation model.
Similar Accumine modelling frameworks and process have been used on studies relating to processing plant upgrades and its effect on the mine plan and different mining studies assessing impacts of type and location of infrastructure, creeks, and alike.
Underground mine due diligence
The problem
Our client required the development of a costing model to assess the viability of an underground mine on which they were undertaking a due diligence. The client wanted to understand the validity of the information provided in the dataroom and to run sensitivities on key value drivers.
Our solution
An underground mine framework was developed and calibrated to the information provided in the dataroom. The framework was generic so it could be easily repeated and allowed for a quick interface for production information and incorporated key inputs and drivers to develop a cost and capital estimate. Additional scenarios were incorporated into the model to assess key sensitivities of timing of acquisition, production level, equipment mix, productivity, manning, and other key input assumptions.
The mine production schedules were interfaced into Accumine using standardised CSV files and separate scenarios were run by changing various input assumptions to help quantify the opportunity and risks of the potential investment. The pivot view feature of Accumine allowed costs to be analysed on an activity, equipment, and/or cost type basis. The user could drill down into the costs and understand the cost drivers back to its input source.
Accumine added value to the client’s due diligence process helping validate the dataroom information and quantify the risks and opportunities for their potential investment.
Why Accumine?
Easily standardise and share data with others
Accumine allowed models to be accessible by simply adding a user, rather than using FTP sites to share information.
A standardised CSV output was configured to feed into the client’s corporate valuation model.
Fast and reliable model building
The use of a common framework accommodating multiple scenarios meant the process to generate a revised scenario based on changed inputs and assumption was fast.
Quick model building allowed more time to analyse and understand key inputs and outputs.
More time analysing, less time building
Multiple lists were used in the development of the model, so key activities, equipment, and cost types could easily be quantified. The Pivot View functionality allowed for the data to be ‘sliced and diced’ to better understand the outcome.
UG hard rock feasibility study and factored consumables
The problem
A feasibility study for a large underground hard rock mine required the development of a detailed cost model. The starting point for the Accumine model was an existing 19MB spreadsheet which was effectively replicated. The detailed cost model was combined with other inputs such as processing in the financial models to support the project business case and decision making.
In addition to calculating the costs, the model required the generation of hundreds of factored consumables which were driven by the mine plan. Items such as jumbo drill metres, ground support consumables, and drill and blast consumables vary by development profile and annual schedule.
Our solution
Factored physicals were calculated as part of the Accumine cost model. The Accumine model imported the base assumptions such as consumption rates by development profile (e.g. 0.9m, 1.8m, 2.4m, and 3.0m split sets per metre) and the mine plan (e.g. metres of development by profile).
Templates were developed for each key area of derived physicals such as drill metres, ground support consumables, and drill and blast consumables. The templates were then associated with each development profile generating the hundreds of factored physicals and consumables. The resulting schedule of consumables could then be costed based on unit rates.
Why Accumine?
Fast and reliable model building
The inclusion of the derived physicals in the Accumine cost model meant that scenarios and iterations could be reliably run with a short turn around when new mine plan cases were generated.
Use templates for speed & accuracy
The use of templates meant that the large number of factored physicals items could be generated quickly and reliably. For example, the “Key Consumables” template was applied to the fifteen development profiles and ten ground support profiles following the creation of the 45 elements of the template rather than 45 elements created for each of the 150 possible unique combinations.
A better, in-depth approach to analysis
Different views of the mine planners and the cost modellers to validate the inputs and assumptions and workings of the model.
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