Constant Crushing Programme

1
Constant Crushing Programme
Constant Crushing Programme
2
Constant Crushing Programme

• The Programme
• The Benefits
• The Options
• The Figures

3
The Programme

• 100 outsourced solution
• The Constant Crushing Programme (CCP) has been
  created specifically to minimise the risk of
  production downtime by combining the purchase,
  maintenance and warranty of the Ore Sizer VSI
  crusher into a single, easy to manage 3yr or 5yr
  contract
• Customers of Ore Sizer CCP enjoy total peace of
  mind and the highest possible production output
  in return for a fixed monthly fee for the
  duration of he programme
• The CCP has significant business benefits and a
  quantifiable return on investment to justify your
  investment

• The Programme
• 100 outsourced solution
• Significant advantages
• The Benefits
• The Options
• The Figures

4
The Programme

• Significant advantages over standard capital
  purchase
• minimal risk of downtime (maximise production)
• predictable fixed costs (no surprises)
• instant start (instant return on investment)
• cash flow advantages(off-balance payments)
• no additional operational overheads for the
  duration of the programme

• The Programme
• 100 outsourced solution
• Significant advantages
• The Benefits
• The Options
• The Figures

5
The Benefits

• Better cash flow
• Tax advantages
• monthly payments are allowable expenses against
  corporation tax
• no capital depreciation involved
• Minimal up-front payments
• no capital outlay
• rapid return of deposit amounts
• keep cash assets in the bank
• No additional outlay
• no requirement for in-house maintenance staff
• all spares, service and maintenance costs
  included in the programme

• The Programme
• The Benefits
• Better cash flow
• Minimum risk
• Instant start
• Improved Productivity
• The Options
• The Figures

6
The Benefits

• Minimum risk
• Minimise downtime
• preventative maintenance
• replacement of wear parts prior to failure
• Maximise production time
• where ever possible the Ore Sizer VSI crusher is
  kept running
• Predictive maintenance
• regular on-site maintenance checks
• regular electrical and mechanical monitoring
• full consignment of wear parts delivered for the
  duration of the programme delivered on site from
  day one
• Predictive costs
• same every month, no surprises

• The Programme
• The Benefits
• Better cash flow
• Minimum risk
• Instant start
• Improved Productivity
• The Options
• The Figures

7
The Benefits

• Instant start
• In profit from month 1
• Ore Sizer VSI crusher earns its keep from day one
  from production income
• Rapid payback of investment
• Ore Sizer VSI crusher only needs to run for a few
  hours each month to recover investment
• No Cap Ex
• No capital expenditure budget required

• The Programme
• The Benefits
• Better cash flow
• Minimum risk
• Instant start
• Improved Productivity
• The Options
• The Figures

8
Improved Productivity

• The Ore Sizer VSI Crusher
• has the lowest operational cost available of any
  VSI crusher on the market
• can easily control and guarantee final product
  shape and size
• has differential crushing capabilities that
  enable mixed feed products to be separated (e.g.
  lignite from sand and gravel, steel ore from
  slag, precious metals from rock, even labels and
  metal caps from glass bottles!)

• The Programme
• The Benefits
• Better cash flow
• Minimum risk
• Instant start
• Improved Productivity
• The Options
• The Figures

9
The Options

• Option 1 - Operating Lease
• Deposit
• zero
• VAT
• payable monthly, recoverable each VAT return
• Depreciation
• 100 off-balance
• 100 off-set against tax
• End-of-lease options
• either give back to Ore Sizer
• buy from Ore Sizer at residual amount
• Additional Costs
• none (all spares, wear parts, service and
  maintenance costs included)

• The Programme
• The Benefits
• The Options
• Operating Lease
• Hire Purchase
• The Figures

10
The Options

• Option 2 - Hire Purchase
• Deposit
• 10 plus all VAT
• VAT
• all up-front Vat payments (deposit) recoverable
  on next VAT return
• Depreciation
• on-balance depreciation of capital goods at 25
  per annum (on a reducing balance basis)
• All interest payments are 100 allowable expenses
  against tax
• End-of-purchase options
• ownership on payment of 10 option to purchase
  management fee (included in final months
  payment)
• Additional costs
• none (all spares, wear parts, service and
  maintenance costs included)

• The Programme
• The Benefits
• The Options
• Operating Lease
• Hire Purchase
• The Figures

11
The Figures

• Operational Lease
• 5 yr Analysis (actual example - hard rock
  quarry)
• monthly Investment 5,100(Jelf Group Jan
  2009)
• Return on Investment
• working hours p.a. 2,000
• tonnage per hour 200
• retail income per tonne 13.00
• no of hours production 1.9 hrs per month
  to recover investment

• The Programme
• The Benefits
• The Options
• The Figures
• Operational Lease 5yr
• Hire Purchase 5yr

12
The Figures

• Hire Purchase
• 5 yr Analysis (actual example - hard rock
  quarry)
• monthly Investment 5,550(Jelf Group Jan
  2009)
• Return on Investment
• working hours p.a. 2,000
• tonnage per hour 200
• retail income per tonne 13.00
• no of hours production 2.1 hrs per month
  to recover investment

• The Programme
• The Benefits
• The Options
• The Figures
• Operational Lease 3yr
• Operational Lease 5yr
• Hire Purchase 3yr
• Hire Purchase 5yr

13
Summary

• No Capital expenditure budget required
• Production capacity remains at maximum
  performance for the term of the programme
• Scheduled servicing means we fix it before it
  breaks
• Predictive wear assessment means we replace all
  wear parts before they wear out
• Extended warranties are covered for the full term
  of the programme