By Craig Griffiths, Manager Customer Solutions, Volvo Construction Equipment
Mines and quarries around the world are limited by capital available and the deposit’s potential. Quarterly reporting although interesting for the share markets (when positive) lose sight of the objective to sustainably extract the resources available. Operations chasing NPV, IRR while missing the fundamentals of economics can kill a company. Deferring capital expenditure (cashflow) is a fundamentally sound management program for operations. To lose potential cashflow while maintaining a sound bankbook, can, in the long run, be the most economical sound solution for your operation.