Our Work


Overview

Cyest Analytics has been actively involved in economic modelling and optimisation in the mining industry for the past 7 years and has developed significant mining IP. This optimisation and analysis experience and IP is now being extended into the telecoms, freight rail, financial, airline and retail industries.

Our diverse client offerings can be summarised as follows:

  • Custom developed software solutions (typically high-end predictive models or intelligent databases aimed at providing business intelligence and management information to senior executives).
  • Advanced valuation and risk analysis (e.g. DFA (advanced Monte Carlo Analysis)).
  • Our data mining practice has had a track record of success in analysing plant operations to predict breakdowns, maximise recoveries and minimise cost.
  • Development of Custom analytical solutions in Carbon and the implementation of packaged solutions (CarbonEconomic for Activity Based budgeting and forecasting and Project Valuation)
  • Mining Consulting – OPEX modelling and Project valuation, data analysis and initiative based budgeting facilitation.
  • Ongoing support including technical support, including 'analysis on demand' (managing scenario and modeling runs as well as facilitating the delivery of insight to senior management teams) and outsourced planning.


Enterprise Optimisation
Enterprise Optimisation

Optimisation entails the allocation or configuration of resources, that are within the control of management, to maximise (or minimise) a specific objective function. There is an optimal configuration of controllable variables (e.g. mining rate, cut-off grade, capital expenditure, capacity, ore mix etc) for a given set of external uncontrollable variables (e.g. geology, external market conditions, commodity prices etc).

Optimisation requires a precise understanding of how changes in one (or more) of these variables or drivers will impact a single outcome or desired metric.
Optimisation generally implies a trade-off; there are often two (or more) opposing effects or consequences of changing any two variables. Thus, in mining for example, mine planners are often faced with contradictory objectives. Typically, planning implies optimisation even if it is not explicitly understood, as the planners have to make trade-offs in their planning process.

Typically, planning will attempt to balance maximum extraction of the resource with maximum value from its exploitation. These two objectives often work counter to one another as full extraction is invariably achieved with a low margin and long life, whilst value maximisation is generally focused on larger margins and a somewhat shortened life of the operation.

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Quantitative Risk Assessment using Dynamic Financial Analysis (DFA)
Quantitative Risk Assessment using Dynamic Financial Analysis (DFA)

Having stemmed from military scenario modelling principles during the Second World War, Dynamic Financial Analysis [DFA] has evolved to become an established actuarial valuation methodology used to quantify value, risk as well as value at risk. 

A simplified application of early DFA principles was deployed to great effect by the famed scenario modelling unit of the Shell Petroleum Company in the late 1970’s (the influence that this unit had on strategic decision making has been regarded as a major driver of Shell’s success from 16th largest petroleum firm to 2nd).
 

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Simulation in Mining Industry

Several factors combine to make business and operational planning in the mining industry uniquely challenging.

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Project Valuation and Planning Tool
Project Valuation and Planning Tool

Developing a scenario planning tool to evaluate, benchmark and schedule capital projects and then test these against changes in external market conditions - in order to evaluate different strategic objectives over the long-term.

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Risk Adjusted Project Valuation Tool
Risk Adjusted Project Valuation Tool

In the case of a large diamond mining client: Developing a risk-adjusted
valuation tool that allows for effective decision-making.

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OVERVIEW
Overview Cyest Analytics delivers tangible client value through advanced analytics and economic modelling and optimisation solutions across all industries.  To build robust enterprise wide econo...
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OUR TEAM
Gary Lane
CEO: Cyest Analytics

Gary, one of the founding directors of the company, has been with Cyest Corporation since its inception in 2000. He has a BSc (Eng) and MBA and has worked in various engineering and project management...

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INDUSTRY PAPERS
Economic Modelling and Optimisation Application in the Mining Industry

Cyest Corporation has been involved in economic modelling and optimisation with various mining clients within South Africa, and internationally, for the past 5 years. In the mining industry in par...

More Industry Papers
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