The client is a gold-mining company. The question is whether to purchase the technology (no info) that increases the processing plant efficiency.
1) Financial attractiveness (Revenue, Costs changes, Investment required)
2) Operational aspects
1) Technology characteristics (lifespan, capacity, etc)
2) Technology within production process (bottlenecks, available place and compatibility)
3) Feasibility
1) Integration complexity
2) Postintegration risks
Hi there,
A cleaner and more MECE way to structure this investment decision could look like:
• Financial attractiveness
– Incremental impact on cash flows and profitability
– Investment required and payback or returns
– Sensitivity to key assumptions (e.g. gold price, throughput)
• Implementation feasibility
– Technology fit with existing production process
– Capacity and bottlenecks
– Integration complexity and timeline
– Operational reliability and post-integration risks
• Strategic and risk considerations
– Alignment with long term strategy and competitiveness
– Scalability and future optionality
– Regulatory, safety, and environmental risks
This keeps the focus on the decision while avoiding overlap between operational and feasibility topics.
Best,
Evelina
