I’ve been in the mining industry for over 25 years, and this isn’t the first time I’ve seen similar challenges surface. Time and again, we see that blunt measures like cost-cutting or intensive productivity drives only deliver limited, short-term results, and rarely create lasting impact. The real, sustainable opportunities come from digging deeper into the true performance levers to unlock hidden value by mining smarter.
What’s important is that these opportunities don’t usually demand major capital outlays but rather a more strategic and sophisticated approach. Five key levers can significantly improve performance by addressing both sides of the cash flow equation-costs and revenues:
- Cost management and control: Going beyond simple cost-cutting, a deep understanding of cost drivers helps identify and eliminate inefficiencies without sacrificing quality or sustainability, delivering savings that last.
- Leveraging mining data: Using data effectively requires setting the right KPIs. Done properly, this unlocks meaningful gains in productivity and overall performance.
- Building a strong geometallurgical model: This enables more predictable ore behavior, higher recoveries, and lower processing costs.
- Revisiting cutoff grade policies: Moving away from break-even grades often boosts cash margins today, strengthens resilience against current market pressures, and maximizes long-term value.
- Sound mine planning: A well-structured plan ensures alignment with business strategy and sets the foundation for consistent results.
These five levers are relatively low-cost to implement, yet they can deliver a significant lift to the bottom line. While they’re especially critical when margins are tight, they create value at any point in the cycle, making now the right time to act.
