ROI Calculators

Comprehensive Financial Model to perform cost benefit and sensitivity analysis

This model for doing a Sensitivity Analysis on ROI and NPV takes into account the impact of GroundHog SIC on the mine and the mill. The model is fairly complex and typically takes about 1-2 weeks and significant inputs from mine management and finance teams to build a high-confidence model. 

Comprehensive Sensitivity Analysis of Investments in GroundHog's Short Interval Control

At some point in your budgeting cycle, you will be asked to do a Cost Benefit Analysis of the GroundHog SIC system. 

This second, and a more advanced, Financial Model is used to do a ROI, NPV and Cost Benefit analysis of GroundHog’s SIC and FMS systems. Business Improvement Managers work with the Mine’s Finance Team to build out this model.

This model is built for an underground operation where the mine has a good understanding of the development cost, the development rate, the length of time to drive drift, additional investments your mine will make in underground exploration drilling (given that you’ll be mining atleast 40% more every day). 

We also take into account assumptions around the process plant – for example, annual costs, average throughput, Fixed Costs and Implied Fixed and Variable costs, recovery rates, etc. 

We then take into account the mine’s standard physicals such as the expected start of  mining declines, access length factors, Infill Drilling Assumptions, and other Mining Assumptions. 

As discussed earlier, chances are you are building a business case. So, you’ll be asked to determine benefits, determine costs, calculate financial impact, do a sensitivity analysis, determine non-financial impact, summarize your findings and finally, present to the board for budget approval. You will need to demonstrate ROI to get budget approval. 

Having worked with many of the largest mining operations worldwide and having access to production data pre-and-post GroundHog SIC, we worked with a few of our customers and management consultants to build two financial models to help you build a business case for using Short Interval Control (SIC) at your Open-Pit or Underground mine. 

Our experience tells us that a mine that had been running a dispatch system increased their production (tons to surface) by 36% (without adding new equipment or personnel) after deploying Short Interval Control with GroundHog SIC. Mines without dispatch have seen an increase in production by over 250% by better sequencing their work. 

Here are two models you can use to make your business case. One is to use for simple back of the envelope calculations and the other is more comprehensive and includes any additional CAPEX investments your mine may need to make to handle the additional ore mined. 

For example, an underground mine producing 140,000 tonnes of Copper has an NPV of US$ 132 Million (download and make adjustments the model). 

We at GroundHog can assist you with building your business case, including helping you build these financial impact models and run sensitivity and risk analysis.

For more information on Short Interval Control, please go here.

For more information on who Fleet Management Systems for Underground Mines, please go here

To download our presentations, please go here.

Download the ROI Model!

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