Precious Mettle - Part 2: Planning for Success
The Value of High-Grade Mining CFOs
Our five-part blog series, Precious Mettle – The value of high-grade mining CFOs, looks at the qualities proactive mining CFOs deploy to drive greater business returns. This series shares observations from more than 75 years’ combined experience in senior mining finance roles, across multiple commodities, by Andrew Bantock, Steven Michael and Martin Nicholson of FTI Consulting’s Australian Mining Advisory Practice.
The journey from greenfield’s explorer to producer can be a roller-coaster ride. The thrill of first drill hits and a growing mineral resource gives way to the forensic rigour of technical feasibility and packaging up a financial business case. For many, the final commitment of capital is a heart-in-mouth moment of betting the balance sheet. From then, the discipline of delivery becomes key as capital markets and other stakeholders focus on results.
Top mining CFOs understand what it takes to succeed through this cycle. In this second instalment of our Precious mettle series, we discuss what good looks like in the area of mine financial planning – a pre-requisite for corporate success.
The Importance of Long-Term Planning
Mine planning may sound simple to some, but it can be difficult to perform well, partly due to its multifaceted nature. It can involve different types of planning (long-term, short-term and covering reserves and resources); different functions (mining, technical services and processing); and different techniques (top down, bottom up or physical driver-based).
So, what does good long-term planning involve, how does it differ from short-term planning, and what are its benefits?
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August 10, 2021
Senior Managing Director, Co-Leader of Australia Mining and Mining Services
Corporate Finance & Restructuring