Budgeting
Runge specialises in geological modelling through to financial evaluation. This includes the development of operating and capital cost schedules and the determination of required selling price or potential value. Since this often comprises the majority of the technical work in a project, Runge personnel typically play a pivotal role in the co-ordination of complete evaluations.
Using our clients' own data, as well as information from our comprehensive database of worldwide mine operating and capital costs, our clients obtain a reliable indication of how their operations are performing on an absolute basis compared to other mines worldwide. This guarantees better decision making, and more confident pricing decisions to be made in competitive bidding situations.
Economic Ranking to Guide Mine Development Strategies
Runge has developed economic ranking techniques to determine the real value of ore and waste on a mining block basis. This procedure allows rapid assessment of the effects of changing economic conditions on mining reserves by variation in the production costs and revenues associated with the mining methods proposed. Mine planning is always directed towards the most profitable reserves.
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Financial Evaluation of Mining Projects
Runge specialises in the financial evaluation of mining projects including the development of operating and capital cost schedules and determining required selling prices or potential value.
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Life Cycle Costing
With proven expertise in technical and financial analysis, Runge can assist your operation with effective life cycle costing. We include the following steps:
- Identify the key cost drivers of the business process that the equipment is used for and model the effects of these factors over time
- Identify the point at which the lowest costs for the whole of equipment life occur. Carry the key assumptions to provide a sensitivity analysis of this life
- XERAS can be used to develop detailed long-term and short-term budgets that are responsive to production scenarios and it has special functions for equivalent annual costs analysis and maintenance costing
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Maintenance Budgeting
The XERAS business modelling software is used to evaluate the economics of proposed mining schedules and equipment purchases. A database of forecast equipment operating costs can be developed from first principles and used in the evaluation of many options that relate to the mining schedule. This helps manage the usage of major mining equipment, develop appropriate strategic capital acquisition/purchase agreements, and highlight opportunities for improvements in mine planning.
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