Originally posted by jogo
Eshmun,
I think you are a bit early with a thread to develop the automation theme, which goes hand in hand with the RSG value proposition. Initial automation commences this month (I think) but full automation is some months off.
You discount the risk factor of an automated mine but RSG blows the trumpet about introducing the first fully automated mine. I understand first to mean first on a worldwide basis and that means that RSG is becoming a bleeding edge gold miner. We use the term "bleeding edge" for initiators of technology for a good reason. Even if elements of the technology are in use elsewhere in the world, that is not the same as a completely automated mine with all the inter-dependencies throughout the mine subject to automated activity.
For me, RSG is now entering a phase that requires close examination and even more importantly, honest and regular disclosure on Syama mining activity. Of course there will be issues with this development - there always are. The impact of any issues is the focus of interest. Whether we really have a value proposition will become more apparent with quarterly reporting next year.
The AISC will be the key performance indicator as to the success of JW's strategy.
I wonder what level of support will be provided by Sandvik? When automation has hiccups then immediate and relevant support is needed. Sometimes issues have complicated causes that need expert attention from the supplier, and physical presence at the mine may at times be essential, even with today's remote access capability through the Internet. A combination of experts may be needed with knowledge in the mechanical as well as the electronic hardware, not to mention the automation software levels.
Did I say "bleeding" edge?
Hi Jogo,
I can only speak from past experience in developing new technology in the energy sector.
ANYTIME we introduced "bleeding edge" it was fully supported as we wanted success for the client BUT also it was our future selling reputation at stake. Best way to sell future technology based contracts was with successful proven case histories.
As a technology service company you're only as good as your last job.
Trust me Sandvik has just as much at stake if not MORE than RSG if they don't support this properly and make it a HUGE success.
It's their future earnings and business pipeline at stake. They WILL make it a success of fall prey to failure at the worst level which will impact their business for years to come.
Knowing of Sandvik they are a tier 1 service and technology provider. That's why they were chosen.
Make no mistake they have just as much if not more on the line here than RSG.
If they don't view and treat it this way then they will be doomed to failure. They don't strike me as that type of company.
(20min delay)