Course Outline
1 SUMMARY
2 LCC PRINCIPLES
2.1 What is LCC?
2.2 LCC versus Maintenance Strategy
2.3 Basic LCC Model
2.3.1 Term/Utilisation
2.3.2 Capital
2.3.3 Operating Costs
2.3.4 Maintenance
3 RISK
3.1 Risk Categories
3.1.1 Economic Risk
3.1.2 Physical Risk
3.1.3 Commercial Risk
3.2 Individual Risk Factors
3.2.1 Inflation and Foreign Exchange
3.2.2 Application
3.2.3 Supplier Risk
3.3 Incorporating Risk into LCC Models
3.3.1 Cost
3.3.2 Consumption
3.3.3 Production
4 PRACTICAL EXERCISE
5 INVESTMENT ANALYSIS
5.1 Gross Cost
5.2 NPV / DCF
5.3 Cost Per Ton (CPT)
5.4 Discounted CPT
5.5 Which one to use?
6 CASE STUDY – ANVIL MINES
7 USING LCC
7.1 Budgets
7.2 Resource Forecasting
7.3 Risk Management (RVIC)
7.4 Strategy Optimization (PCV)
7.5 Bids and Assessments
7.6 Feasibility Studies
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Course Overview
SUMMARY
This course shows students how to apply life cycle costing (LCC) methods to mining equipment, and to assess these investments using reliable financial modeling and sensitivity analysis. Particular attention will be given to key operating variables and local conditions, and the way these factors influence asset performance. The course will be of particular interest to purchasing, maintenance, engineering and production professionals from mining companies that operate fleets of large haul trucks and support equipment. It will also be of interest to suppliers and financial analysts who wish to gain a better understanding of mining economics.
OBJECTIVES
Students should understand the principles underlying Life Cycle Costing, be able to create their own LCC models, and apply these models to real life situations. They should also be able to perform common investment analysis in order to support management decisions.
SCOPE
The scope of this course includes mobile mining fleet assets and the capital, operating and maintenance inputs that comprise a conventional Life Cycle Cost model. For illustrative purposes the examples in this course will be haul trucks, though the concepts and analysis can be applied to shovels and support equipment.
About the Presenter
Michael Currie is a maintenance and operations specialist who has consulted with PricewaterhouseCoopers' global mining group and led a division for Finning Canada, a major Caterpillar Dealer. He is a frequent speaker at industry events and a regular contributor of articles on asset management and technology. He has a B.Sc. in Civil Engineering and an MBA.
Brochure and Application Form
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