Production Accounting

Operational Production Accounting

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Facilitates a change in business philosophy from past accounting for mass to future accounting for metal content.

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Produces timely and relevant production information for monthly financial reporting.

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Increases accuracy in matching production costs to various parts of the production process.

Supports proactive risk management and enables timely and accurate recognition of revenue.

Enhances production performance measurement and improved production planning and forecasting.

Provides a key input for bonus scheme calculation and assists in the calculation of royalty payments.

More than half the world’s platinum production is monitored using Production Accounting.

Key Features

01Data Validation Management

Manages the validation of data from the mine - from processing plants to sales, and produces a consistent network of inventory and stream data. The result is a powerful tool to support understanding and well informed decision-making across the business.

02Self-Consistent Data

All mass and assay data can be included in the statistical balancing process which produces self-consistent data and assists with the identification of erroneous data. The use of redundant data also provides continuous validation, enabling measurement problems to be detected sooner.

03Automated Balancing

The automated balancing capability enables results to be available soon after the assays are reported, providing rapid access to validated information. The solution includes diagnostic tools that enable the identification of data problems.

04Improved Visibility

Balances can also be run at any time and for any defined time period, providing improved visibility and flexibility.

Let us help you efficiently address your key production accounting challenges – speak to our experienced team!

Industry Challenges

Mining, mineral processing, smelting and refining companies are required to accurately report the true state of the organization’s financial health. This requires accurate calculation and reporting of final product valuation, throughput, in-process inventories and the financial impact of the change in metal grade for any defined period of time. To achieve this, data on in-process inventories needs to be continuously available. This is a key requirement for reporting as specified by the Sarbanes-Oxley Act.

Production Accounting provides the vital link between the production and finance areas of the business. The Process Manager, responsible for continuously reporting production figures and maximising throughput and recovery, requires quick access to validated production information for reporting, planning, and monitoring productivity and profitability improvement initiatives.

Obtaining validated and timely information requires a consistent and efficient information management process. To date, however, the industry norm has been to manage this key information in a series of spreadsheets and disparate systems. This approach has arisen due to the wide variety of data types that are not covered by generic plant management systems.

The result is a lack of repeatability in capturing raw data and an excessive amount of time spent by professional staff in calculating derived data. Accuracy, auditability and currency are compromised, risks are increased and the approach does not meet Sarbanes-Oxley requirements. In addition, spreadsheet-based data storage does not facilitate long-term trending or analysis of the outcomes of performance optimisation initiatives.

 

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Production Accounting's Solution

Production Accounting is an off-the-shelf, web-based solution designed for mining, mineral processing, smelting and refining operations. The solution addresses key production accounting challenges by providing the ability to take on production data from various sources such as assay data and moisture content from laboratory information management systems and mass from the weightometers and weighbridges.

The solution includes manual data capture from web-based electronic log sheets, provides validation routines for identifying data with low integrity, and has the ability to quarantine data for review. Production Accounting features a range of data analysis processes, including a flexible calculation engine, batch tracking engine and an industry-leading multiphase statistical mass-balancing algorithm, which transforms data and delivers more accurate and comprehensive information.

Production Accounting has been designed to provide a high level of flexibility to cater for diverse site and business requirements, while enabling the organisation to utilise a single solution across its operations. It enables the organisation to configure the production flowsheet, collect and validate the required data from multiple sources, perform the mass-balancing calculations, and sign off on the results in an auditable fashion. This eliminates the lack of control associated with a multi-spreadsheet, multi-system environment, and enables data sharing across the organisation from a single, reputable source.

Related Software

MineMarket

MineMarket provides real-time enterprise visibility across the entire product and logistics process, from ore extraction to product delivery, and through to the fulfillment of contracts. MineMarket manages a range of scenarios to deal with ever-changing market conditions, as well as optimise contract fulfillment and revenues. It also provides comprehensive and integrated coverage of the logistics and sales processes for mining and mineral producers and commodity traders.

MineMarket provides real-time enterprise visibility across the entire product and logistics process, from ore extraction to product delivery, and through to the fulfillment of contracts. MineMarket manages a range of scenarios to deal with ever-changing market conditions, as well as optimise contract fulfillment and revenues. It also provides comprehensive and integrated coverage of the logistics and sales processes for mining and mineral producers and commodity traders.