Amazing Operational Improvement

A mine and smelter had for several years been experiencing dramatic cost increases and eroding profitability. Given high commodity prices, the business was focused on increasing volumes, which led to a lack of focus on costs. We assisted the client in identifying and implementing margin improvement opportunities through cost reduction and revenue enhancement initiatives. A target of $40m in EBIT improvements was set for the financial year, with the mandate that at least 50% of the target be achieved through cost reductions.

The Final Result

Following a framework, with insights from Analytics has provided the Client EBIT improvements of $80m for the financial year, and $140m+ on an annualized basis.