Question

HOW CAN A GOLD PRODUCER REDURE THEIR COSTS?

HOW CAN A GOLD PRODUCER REDURE THEIR COSTS?

Homework Answers

Answer #1

A gold producer will have to act from planning to production phase minutely to reduce the cost:

  1. Planning: The entire mining should be planned in such a way that ensure maximum productivity in the least amount of time. This can be achieved by:
    • Manpower planning in advance - onboarding experienced people
    • Start with the lowest cost mine, produce the gold and then move towards higher cost mine
    • In order to improve quality, increase the cut-off grade
    • Reduce capex on mines where output is dubious
  2. Leverage technology to improve efficiency
    • Deploy production visibility tools
    • Unify reporting system
  3. Workforce planing
    • Prior work experience people
    • Ramp up manpower in line with production ramp up
    • Production linked compensation
  4. Undertake more of quick-start modular plants and projects
  5. Improving the supply chain:
    • global sourcing contracts
    • Conitnuous negotiations with the service provider
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