Mineral exploration is a costly exercise with no return on investment, especially during the initial phases.
Without capital raising, joint ventures, or refinancing from other projects, exploration simply would not be able to happen. During this phase, drilling , sampling , environmental permits and i nitial proof to the market that there is a mineable asset are all key activities that are required to move the asset in the right direction.
Due to the tight capital, project uncertainty and general risk in the initial stages of exploration, the financial management of your company is an integral part of the business. Specific areas that require a more considered and detailed approach to business management during the exploration phases are:
Project Management Using the Project Costing Module, expenditure is tracked at a granular level that allows for tighter cost controls and greater visibility to your stakeholders on cash flow. Budgets and forecasts can be uploaded allowing transactions such as timesheets, invoices, inventory, and consumables to be tracked via an exploration specific cost breakdown structure . This enables the business to have transparency over the costs associated with projects such as feasibility studies, pilot mines and drilling campaigns. Stakeholder Management As the markets fluctuate, so does investor confidence. Therefore accurate reporting to directors and shareholders becomes a necessity. Modern business solutions are in built with comprehensive financial reporting capabilities along with dashboards so that management can easily and time efficiently produce meaningful reports to support the business.
Tenements Management Many mining exploration companies track expenditure against the tenement package and allocate costs to specific activities within the tenement and can be very complex. With a large land holding and the regulatory activities associated with tenement reporting the management of your tenements can be extremely time consuming. Activities such as is costs, anniversary dates, physical data such as meters drilled, consumables and timesheets need to be tracked and the associated invoices need to be apportioned to the specific lease or tenement often using different calculations to ensure that each cost is split over the correct tenement.
Intuitive Business Solutions for Mining
In many cases the function of financial management in the business is done on a myriad of spreadsheets and smaller accounting packages with the view that these are a more cost effective option for the smaller junior exploration company. With these systems the effort to manage your tenements, the ability to manage your costs and reporting on a granular level can be very time consuming and often not provide the support to the business that is required, especially during times of heavy reporting periods.
S cope currently has a unique niche in this area with its mining exploration solution. Replacing the usual singular point solutions for each of the corporate functions with a fully integrated Accounts, projects and tenement solution, we are able to meet the specific needs of your business when managing your valuable asset. Scope Systems' intuitive Business Management System was specifically designed with Mining exploration companies to deliver a range of business functions and reporting in a simple cost effective cloud solution with very minimal capital outlay.