Client Story: Mining – Share Price
The CEO of a USA based mining company was missing share price goals.
He said the reasons included:
- His long term resource replacement target was double the historic long term replacement rate including mergers and acquisitions;
- Consequently he was missing production growth, cash flow growth, revenue growth and reserve growth targets; and
- Despite intense effort and investment, no team in the organisation had been able to implement effective solutions to solve this problem.
He said the capabilities he needed included:
- When running day to day operations his organisation would commit to and deliver upon a non-negotiable goal, a target more than double historic performance, for replacement reserves from exploration alone;
- An organisation that would year on year meet or exceed non-negotiable production, cash flow and revenue growth goals; and
- When determining strategies, tactics and operations plans his organisation would embrace new ways of thinking that could break free of the old limitations and process bottlenecks.
A business emulation workshop helped him develop these capabilities.
Our consultants designed and deployed of a cognitive remodelling methodology, known as Business Emulation. It involved an operational emulation with 40 employees representing all business functions with a direct or indirect role in exploration success.
The results were fast and lasting. The flatter organisation that emerged demonstrated innovation, focus, speed and teamwork; and improved discoveries. The organisation exceeded the resource replacement rate targets and within eighteen months market capitalisation for the client had doubled. The ROI was measured in thousands of percent and the payback period was less than one month.
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