These studies aim to demonstrate within a strategical point of view the real value that a project can offer a company. For enhancing this objective GEM determines the strategical elements that make the project sustainable and estimates its potential economic value through an option and risks analysis. The results of this analysis include a potential estimation for the Net Present Value, which includes the deterministic value, along whit the value of the flexibility and development option scenarios. Our experience and independence in this type of studies has been valuable for our clients as it lets them take decisions for critical projects.

GEM has developed multiple manuals and guidelines for important companies of the big mining industry in and outside Chile. These manuals have included short and long term strategical mine planning, along with Analysis and Risk management strategies, technical bases for mine planning and the evaluation of business scenarios, among others. These documents have made it possible for our clients to improve their processes through the standardization of criteria along their different areas. The manuals and guidelines developed by GEM incorporate the ultimate tendencies, tools and methodologies offered by the market.

For achieving this purpose GEM uses DeepMine. This software includes the technical and market uncertainties in the planification process. Through this strategy this tool is capable of generating robust and flexible production plans that contrasts with mine plans that are generated based on fixed prices and costs. This tool presents a key advantage in comparison to other mine planning softwares as it offers the possibility of dealing with scenarios that respond to uncertainties.

Based on the auction theory GEM has developed numerical models capable of quantifying the effects that the chosen tender type has over the tender fees. The models consider the traditional parameters associated to tenders along with the competitive response of the suppliers and the risks associated to the contract process. Our clients have used this service for determining the key parameters that must be included in a tender process for maximizing their profit.

The most important Strategy projects developed by GEM are:

• Corporative guidelines for strategic and tactic long-term planification, analysis and risk management, technical basis of planification and evaluation scenarios for strategic businesses.
• Strategical analysis and Development options for projects, operations and mining districts of the copper and gold extractive industry in Chile.
• Study of the economic impact of increasing the slope angle and developing and implementing operational methodologies depending on the lifecycle of the open pit operation of one of the biggest copper producers in the world.
• Making a diagnose, benchmark analysis and organizational proposal for the mine planning team of one of the most important mining companies worldwide.
• Development of the technical basis of tendering for a State. This project was conducted with the intention of maximizing the income of the client regarding mining exploitation activities. As a result, the competitive response in terms of number of bidders and economic offerings was correctly estimated.
• Construction of the tendering basis and payment polynomials for the outsourcing of various main mine and plant processes in a mining operation. With this polynomial, not only the operational costs of the contracted services were reduced by a 10%, but considerations were made to reduce the risk of the client.
• Determining the maintenance optimal strategy for the tendering basis of key truck parts for a mining operation. Additionally, GEM supported the client in the making of the technical basis for tendering.
• Risk Analysis of technical-economic offers for different tendering projects and mining operations.