Independently assessing mine and project business plans
SFA (Oxford)'s on-mine consulting is often commissioned as part of a strategic business review of mining assets to dovetail new shaft development and old shaft closures or ensure timely shaft delivery. The SFA team has visited and assessed numerous mine shafts, pits and projects. Our on-mine consulting is led by Stephen Forrest (Chairman), a chartered and professional engineer with over 15 years of PGM mine experience as a Mine Manager and Head of Technical Services. Stephen has also conducted and led many due diligence assignments, and been responsible for mine shaft sinking. He has worked for Boards and investors to seek opportunities to add value or leverage value from assets. Depending on the assignment, the team utilises expert associate mine engineers, geologists, metallurgists, and analysts.
Scrutinising assumptions and targets for outperformance
Our consulting team evaluates mining company business plans, assisting clients in finalising, committing and verifying the critical production parameters for new shafts and operating mines, as well as the timeline for delivery against strategy. Analysis of production parameters includes:
Analysing development rate assumptions.
The scrutiny of half-level layouts (mechanised vs. conventional).
Referencing geological plans (extraction rates) and upcoming geological drilling schedule.
SFA undertakes stoping rates and team efficiency assessments against shaft construction schedules and construction schedule reviews (logistics, reef, material handling).
We also verify logistical challenges and determine whether significant bottlenecks prevent the shaft from reaching its full potential.
Furthermore, we establish the current issues facing the commissioning of projects and quantify the upside and downside risks to shaft production profiles to ensure targets are met unconditionally and communicated to the Board.
We benchmark agreed parameters against internal (where relevant) and external (risk scenario analysis) operations using our extensive industry database and client data. The project/mine planned performance is then benchmarked against the wider sector, where applicable, to identify the competitive edge.
Scenario planning and risk analysis
With our unrivalled depth of experience and unique databases, we can produce a comprehensive suite of industry players' contextualised analytics and provide a competitive view of the industry sector. Therefore, we can act as an independent reference point for stress testing in-house scenarios and undertaking a risk analysis.
Leveraging our vast knowledge and understanding of the Southern African PGM peer group and other global players, along with our detailed modelling platform to extrapolate macro and micro scenarios of PGM markets, we can provide a thorough risk matrix for the project, show risk categorisation and suggest mitigants for each risk and a risk management plan.
Furthermore, we can leverage our constant monitoring of industry dynamics and awareness of activities within the global PGM peer group to use our distinguished track record of modelling, using appropriate sensitivity analyses on the impact of identified risk and their materiality.
Augmentation of a PGM producer’s business plan
Verified key shaft production parameters
Alongside the client’s management team, we firmed up and verified key shaft production parameters. This included analysing development rate assumptions, the scrutiny of mine layouts (mechanised versus conventional) referencing geological plans, and the upcoming geological drilling schedule. Assessments of stoping rates and team efficiencies against the shaft construction schedule were also undertaken.
Augmentation of a PGM producer’s business plan
In order to independently assess the timeline for project delivery against this PGM producer’s business plan and delivery schedule, SFA (Oxford) assessed and verified key shaft production parameters (development rates), mine plan in relation to geology (extraction rates), construction schedule (logistics, reef, material handling), mine layout (mechanised versus conventional), stoping rates and team efficiencies, thereby verifying logistical challenges and determining whether any significant bottlenecks prohibit the shaft from reaching its full potential. The shaft’s planned performance was then benchmarked against the wider sector to identify its competitive edges.
Evaluation of cost-cutting measures and ore mix optimisation
An independent, due-diligence review of a major South African producer’s operations
With a view to leveraging greater value through improved production in line with business planning, SFA (Oxford) worked alongside the PGM producer’s management team, referencing past achievements so as to identify future risk, and challenging its operational planning to ensure maximum value. The producer’s business plan was reviewed in detail, taking into account shaft performances, with analysis and benchmarking of the wider sector also included, ultimately creating detailed mine valuations.
Other PGM consulting solutions
Explore other services our clients use regularly.
Working with clients and third parties, SFA has a long track record of providing technical due diligence and financial modelling support to help secure funding.
Clients have used SFA to provide the analytical link with banks and financial institutions to support PGM investment decision-making and provide market support.
SFA has supported numerous client listings by providing an independent view of the PGM markets to help secure capital from potential investors.
Our PGM peer-group benchmarking is unrivalled, providing you with a detailed understanding of which assets are outperforming and which are most at risk.
SFA realises cost synergies for PGM clients across company operations to help raise margins and improve production efficiency benchmarks.
With extensive experience covering the PGM markets and industry fundamentals, SFA can provide you with our latest market outlook and the window of scenarios.
The SFA team has completed many labour workforce projects, analysing demographic trends, forecasting future labour requirements across mining operations.
SFA is a trusted advisor to Board members and senior management of significant stakeholders and provides regular assistance to strategy and planning efforts.
SFA can provide accurate short-, medium- and long-term PGM price forecasts to support your business plans and contract negotiations.
SFA provides regular data flows of mine supply and metallurgical pipelines, basket prices, mine economics, and PGM demand to assist strategic decision-making.
SFA has extensive experience in assessing clients' advanced mineral processing offtake options and evaluating indicative commercial terms.
Clients approach SFA to run their own supply and macro modelling demand inputs to see the impact this has on the medium- to long-term PGM market balances.
SFA supports its clients on global roadshows to assist on capital raisings and converse with fund managers, institutional investors and family wealth officers.
The SFA team is constantly providing rich insights for its clients on structural events moving the PGM markets, particularly when the situation continues to change.
SFA works closely with value chain players to understand how materially significant ESG issues can be integrated into their wider company strategy.
SFA's benchmarking of PGM producers on material ESG factors generates high-resolution insights for sustainability-conscious investors.
SFA's analysis of environmental footprints from recycled material in terms of greenhouse gases, waste generation and processing is helping secure new investments.
For many years, SFA's extensive expertise in analysing the changing dynamics of global economies, financial markets and precious metals has enabled us to deliver bespoke research to enhance your next strategy.
SFA has advised mobility companies with their strategies, providing global or local industry context, benchmarking competitors, creating industry scenarios and identifying new opportunities.
SFA delivers detailed insights into the effects of new automotive technologies on PGM demand for light-duty, heavy-duty, off-road and fuel cell vehicles to meet government emission targets.
SFA has explored the purchasing dynamics between market participants, the complexity of the associated price web factors for platinum, palladium and rhodium, providing definitive answers to commercial questions.
SFA is constantly monitoring the evolution of emerging technologies and threats to new metal substitution. Let us cut through the noise, and highlight the short to long-term price risk impacts for your business.
SFA is equipped to provide detailed regional insights of the major players, market shares, demand volumes, and market value for automotive, chemical and petrochemical catalysts, and smaller industrial markets.
SFA's discreet work with recyclers gives us unique market insights, for the major regions of the USA, Europe, China and Japan. We also closely monitor jewellery recycling, electronic scrap and spent catalysts.
SFA has mapped jewellery pipelines, examined costs and margins, quantified future demand levels, and analysed the competitor landscape of fabricators, wholesalers, and retailers for future investment decision-making.
SFA analyses the physical movements of PGMs for demand-side and supply-side participants, how futures contracts are priced and traded, and quantifies above-ground PGM stocks from key sectors.
SFA can provide you with the most insightful 360-degree research covering the secret closed-loop market sectors by quantifying installed capacities, system losses and top-up requirements by company and sector.
SFA has significant experience mapping regional and localised end-use markets for PGMs to assist clients in discovering new trading opportunities and client targets by volume and sector.