Phone or WhatsApp: +27786639653 | Email: william@optiterrae.com
Phone or WhatsApp: +27786639653 | Email: william@optiterrae.com
Having participated in and led several due diligence exercises, we know what to focus on to ensure an effective outcome. This may take the form of a valuation, purchase/participation strategy, or walk-away scenario. Starting with a comprehensive generic due diligence formula, we customise the scope specifically to the nature of asset, owner and investor taking account of the market, technology, geography, resource, environment, and influential stakeholders. We are able to draw on a diverse set of international associates and specialists to develop specific discipline solutions or a complete turnkey assessment.
Putting a measure of success and budgeting for exploration activities is always challenging. Ultimately, effective exploration comes down to the right people making informed decisions using experience and insightful judgment. We can assist you by identifying those individuals required to set your exploration program on the right path and by providing critical progress reviews. Exploration planning is a live process and needs to be updated continuously. It is critical that your service suppliers are contracted to provide the necessary flexibility to enable continuous optimisation. We have first-hand experience in supplier selection (geological advisors, drillers, logistics, laboratories and geo-modellers) and will identify the relevant entry points for hydrogeological and geotechnical data gathering to ensure efficient use of funds, efficient project development schedules and solid geomodel results.
Having raised over USD 1 billion in multiple project finance packages, we are well positioned to guide you on the ideal mix of finance options and best-suited parties to secure finance for your project. Supported by personal relationships with several banks, credit agencies, private equity firms, multilateral finance institutions and experienced legal teams, we can guide you through the minefield of project financing.
Project selection can be challenging when you are presented with multiple opportunities. Ultimately, investment decisions need to be taken using a balanced approach to understanding the key drivers:
Economic metrics including NPV, ROIC, payback period, etc. should be used for valuation, not selection. It is also critically important to assess your weighted average cost of capital (WACC), specific to the project and your investor expectations.
A technical outcome is only half the solution. The nature of the project must be assessed to determine the best cost-risk balance for the client. Ranging from self-perform through to LSTK, the permutations of each execution methodology must consider the nature of the project, client capabilities, lenders, scope, environment, stakeholders, cost and safety aspects. Based on first-hand experience of a range of methods and backed up by tried and tested forms of contract, we can assist in identifying, designing and implementing the best solution. As an independent party, we are not beholden to or influenced by partisan objectives.
Finding the best value for material, equipment and services can be challenging. In addition, the pitfalls and risks associated with procurement can expose your organisation to governance and compliance risks. With a broad knowledge of international suppliers, a transparent and efficient procurement process and quantitative bid analyses, we can derisk your contracting and procurement function and pursue the best value to improve your bottom line while protecting your firms reputation..
The effectiveness of project execution is as important as the design. In order to achieve a safe, on-time, within-budget outcome, you need to set your team up for success. Key tools such as Safety Management Plans, Responsibility Matrices, Reporting Templates, QAQC Management Plans, Payment Certification Processes and team KPIs are critical. We partner with world-class associates and firms to develop a project construction management solution fit for your project. Whatever you do, don't abdicate these responsibilities to your EPCM or PMC. The owner must be in the driving seat.
OTR can identify the most suitable skillsets to design, review and optimise your life of mine plans. As organisational priorities respond to external economic stimuli, you will need to review your operational focus, be it short-term cash flow or long-term NPV maximisation. We can assist you in short-term optimisations and adjustments or refocus your operation to maximise performance against specific metrics. We work with some of the sharpest minds in the industry in orebody modelling, evaluation, open pit and underground mine design, financial valuation, equipment selection, and metallurgical optimisation. Before you appoint a consulting firm to "fix" your project or operation, ensure you have defined the objectives and critical questions to answer. Giving your management consultant a blank canvass is taking to giving them a blank cheque!
In addition to being a critical part of mine design, fleet selection has ongoing input requirements. Whether you are a greenfield start-up operation reliant on outsourced mining services, or a mature operation with your own fleet, ensure that your assets are being used effectively by reviewing operator practices, maintenance methodologies, fleet matching, and energy consumption. Our associates can assist you by drawing on their experience to improve fleet productivity and reduce operating costs.
Whether your investment needs to meet World Bank EP, IFC PS, customer certification, internal policies or national legislative standards, it will be budget constrained. As a critical input to any bankable feasibility study, you will need a solid estimate and identification of any red-flag issues, be they biological or anthropological. Your ESIA needs to be designed with the end in mind, e.g. a relocation or compensation program, set-aside or offset, the ESIA needs to be focused on delivering actionable Environmental and Social Management Plans. We can lead this initiative for you, identifying cost-effective resources to deliver your ESIA and ESMP and integrating these requirements into your project delivery strategy.
Going beyond "licence to operate" you need to ensure that you have positive employees, supportive communities, constructive NGOs, and local and national government support for your investment. We can assist you in developing a stakeholder map and management plan. This will then drive your specific initiatives, including CSI, livelihood restoration, stakeholder reporting, and engagement forums. We will identify the need for specialist interventions and services proactively to avoid a scramble for assistance.
Management guru Peter Drucker famously said, “If you can't measure it, you can't manage it.” This is particularly relevant for the mining industry. With a foundation in your designs, you need to ensure that your team and individual KPIs are aligned to ensure organisational objectives. You then need the measurement systems to capture the data to inform assessments and manage recognition and rewards. With the proliferation of IT solutions and devices, it has become possible not only to collect data, but analyse and forecast performance using technology (statistical analysis, AI/learning algorithms, etc.). Depending on the maturity and complexity of your organisation, investment in automated or manual data collection and analysis may provide significant payback. Let us review your needs and determine if there is a business case for investment.
Inbound or outbound, this is undoubtedly a significant part of your construction and operations cost. Opportunities are always present including in how multi-modal systems are developed, choice of port, back-haul opportunities and dead-legs from other industries. Risk mitigation is equally important with regard to fuel price volatility, infrastructure condition and supplier reliability. If you haven't reassessed your inbound and outbound logistics solution in the last six months, consider doing so.
How well do you know your existing and future customers' pain points? We use a Value-in-Use assessment methodology to determine a fair price for your product that maximises value for both you and your customer. With an international network of traders, buyers, shippers and technical advisors, we can assist you in your customer selection process, price negotiations and transport solutions.
Your investors and shareholders certainly expect your management team to have identified and managed the key risks to your organisation. Whether these are physical, economic, social, environmental, political, technical, or legal, you require a systematic and demonstrable solution. We can assist you in developing a pragmatic and useable solution, review existing systems or enhance your existing information to provide a graphical representation of your key risks, management actions and residual risk levels. Risks are addressed at an enterprise level (ERM), project (PRM) and operations (ORM) level.
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