CapEx benchmarking for a resources company
A resources company hired a consultancy to apply internal and external Capex benchmarking to identify areas where spend exceeded industry norms and conflicted with operational best practice. Delivery Partners conducted capital spend benchmarking and analysis.
- External benchmarking of sustaining capital spend
- Compared sustaining CapEx against factors such as PPE depreciation and cash flow
- Assisted with an internal review of the organization’s spend and an audit of spend on significant items against operating / maintenance heuristics
A high-level process for capital management was designed, including spend categorization, funds release frequency, and funds-release “toll-gates” for the various spend categories.