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Compliance Analysis & Decision Making

Risk Analysis
Decision Making
Options and Strategy Analysis
Quantitative Risk Analysis

Integrated Project Portfolio Selection (IPPS)

Project Portfolio Selection (“PPS”) is a progression of “go – no go” decisions based on successive evaluations of relevant experience and company information. As such, PPS is normally surrounded by a series of decision-making processes even before they start. 

Traditional PPS is normally performed using ad hoc decisions based on available information, experience, and gut feeling decisions in conjunction with static techniques such as rank analysis that is based on standard methods. These types of traditional decision making, however, could be qualified as a “hole-istic” analyses as they analyse each individual project from a “very high level” and a subjective viewpoint, which in most of the cases do not have the appropriate technical and economic support, difficult to defend in front of the stake holders and owners of the company. 

R&O ANALYTICS’ Integrated PPS (“iPPS”) is an advanced corporate decision making tool which sees the PPS process as a holistic process that integrates all decision making stages before making the final investment decision. 

R&O ANALYTICS Integrated PPS solution covers the following stages:

  • Corporate guideline and strategy.

  • High level risk analysis.
  • Assessment of project’s options.
  • Decision making.

Options & Strategy Analysis

Decision making in mining is the process of selecting not only the best among the different alternatives or strategies but also the one that is practical and tractable for the mine project. Options analysis (or real option) in mining is a managerial/corporate selection process based on the basis that changes over time will affect the cost and profit of a future mining investment/project. 

If there is no option to change the decision, then mining managers must abide by the original decision. However, by creating an option for a decision in the future, managers can choose to pursue mining investments that are then deemed profitable.

R&O ANALYTICS’ effective mine strategic business decisions process and expertise helps mining companies to tackle the right issues, and develop the right process to bring together the right resources for the right markets at the right time – the objective is to minimise the risk for losses while maximising the potential for profit. 

The solution we provide are:

  • Assessment of existing decision-making tools and/or assistance in developing an Options/Decision-making framework.
  • Determination of technical and economical parameters for inclusion in evaluation models based on uncertainty.
  • Scheduling and prioritisation of decision pathways or projects based on a qualitative and quantitative metrics. Developing investment timing strategies including

Quantitative Risk Analysis

Strategic planning and mine design is a complex process. This complexity arises from the large range of variables that need to be considered in order to maximise the value of a mining operation with any confidence. Despite extensive data gathering exercises primarily focussed on the deposit, many of the inputs into an evaluation model are either unknown or limited (i.e. averaged values) even when the project is at an advanced stage. This typically results in a sequential evaluation process and averaged (or factored) inputs being applied to the mining operation, with little or no consideration given to the inherent risks associated with such an approach. 

At R&O ANALYTICS we use advanced mathematical and simulation techniques to model (based on data available) and predict future input operational and financial data (i.e. grades, prices, quality and operating costs, etc.) to provide probabilistic estimates of key project indicators. The result will be an evaluation model containing all relevant information for each stage in the mining process with associated confidence of limits applied to the key inputs (e.g., resource/reserve estimation, mining, processing, etc.). 

The solution we provide are:

  • Identifying and quantifying project sources of uncertainty.
  • Risk assessment, measurement and management.
  • Identification of data deficiency and high risk/potential areas (i.e., high/low grade variability, limited metallurgical design confidence and high/low cash flow).
  • Upside/downside potential.

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