struttman consulting
 
 
 
 
Client Results
Reduce Costs
  CC102
  CC104
Expand Revenues and EBITDA
  CC110
  CC115
  CC106
Grow Strategically
  CC111
Expand Revenue and EBITDA

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 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
$3.5 million fleet refurbishment completed within 4 months
300% increase in mean time between stoppages
50% improvement in utilization
20% targeted cost reduction
  
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