Member Info for PM01

Aker Commissioning continues until Beneficial Operation.

During commissioning, depending upon the plant size, there can be many stages of the process to prove the various process steps. Say there are 5 process steps there maybe a slight glitch on one instrument or valve in one of the steps that prevents the full process stream from operating. They may have 'produced' but not at a level to be consistent and shutdown to resolve the glitch. If I had to put our an RNS every time one of my projects had glitches I'd never get anything done and add little value. We knows it not producing and unless there is a major issue why submit an RNS. The team will be using their time wisely to understand any issues and looking for solutions. Chill guys.

The build stage through to commissioning and operation is the exciting bit which shows how good the front end, design and procurement was delivered. As a client PM I could not escape!!

Gemell1, I agree on the PM comments although as a PM with 30 odd years in the chemical industry I've come across many who do not deliver very well. It also depends upon the team and their knowledge of the process and Commissioning, Operational and Maintenance processes and it's this aspect that is a risk which a good PM would take into account. I've seen many PM's concentrate on the design and build process since thats 'the contract' and ignore the ongoing activities. A well know DCS company is good at that.

True calmness comes when the system is proven in terms of production, quality, sales, receipts and profits. Until then there is no point in being uptight since we all know the full details are unknown and it only raises the heart rate and wrong decisions can be made.

As a Project manager (was, just retired) I know first hand that there is always something that comes along to kick you. Despite conducting risk reviews and focus on high risk areas the low risk activities sometimes bit you. What matters is what is done to mitigate that issue and the overall plan.
On a positive note, the delay allows other parts of the plant to be tested and any issues resolved which hopefully means teh commissioning period is not affected significantly and the plant can ramp up quickly.
There is no point in panicking but to stay calm and understand and resolve the issues.

In project terms and I would imagine mining is no different.
Mechanical Completion - This includes E/I/C and is the completion of Construction to the specified/Agreed parameters including hydrotest, loop checks etc.
Pre Commissioning/Commissioning then starts
Once trials are completed to agreed standards (normally 72 hours in my industry) it can then be claimed the project has achieved Beneficial Operation.
Following that Maximum rate trials would be done.
Claiming Operational could be loosely termed to say they have produced product but not necessarily at nameplate capacity. Depending on the project I would normally allow a couple of weeks to 3 months from Mech Completion to achieve Ben Op to allow time to resolve reservations etc

If its not AGL then their PR machine needs to get moving

Potentially a little late in the communication considering they knew about the design change days/weeks? ago. Had we known this information then the share price would not have risen to 90's. The drop is expected and not a worry.

As a Project Manager it was obvious (subject to photo dates) the dates were unlikely to have been met. All good projects get delayed but the good ones shine through and eventually deliver.

Please about the honesty albeit a tad late

This is not a deramp but my opinion as a Project Manager albeit in O&G where standards will be much higher than in Africa . Reading the RNS where it says MCC's on route does worry me since without those installed and tested, precommissioning cannot commence. I assume they've completed FAT's on those units.

They do appear to have completed a remarkable amount of work in the timeframe but it would be interesting how much slack they have in the programme and are they now on the critical path.

At the end of the day all good projects get delayed!!! Not long now.

Depends on the product and the value of the product along with the debt. They may see it at a low price and will have a ceiling on what they are willing to pay. Question is, what is the ceiling?

I've been watching all the guesses as to what the share may achieve although I do wonder if it's a buyers market and therefore bids will be on the low rather than high side. Is Cineworld desperate for a resolution (what ever that means to prevent bankruptcy) or do they hold the key to unlock future profits which the bidders want and hence higher bids. A fascinating challenge to watch and to see the negotiations unfold. Key question is who has the upper hand?
My thoughts is that any deal will be 'in the middle somewhere' since all sides need to achieve a win win scenario.

@Alert thanks

RNS 3rd Aug 21 quotes "The pilot plant has a nameplate through put of up to 190 tonnes per hour, however it is planned to run at a more conservative 140 tonnes per hour at inception". Question - I've looked but cannot find. Is this a 24/7 operation or Monday to Friday at 8hrs/day? to put size into perspective.

I've been involved in Pilot plants much smaller and bigger than this and some developments have gone through a number of increases in scale. Although this does appear relatively small compared to larger companies, it's still larger than what I would call a pilot plant.

Fast track works if the right team is involved and suitable Contracts set up. A while ago (Mid to late 90's) I was involved in a £70m project. Given a 1 in 40 chance of success. On time and within budget. That was in the UK. In Africa there is a different Political and Cultural landscape which is a different matter although it appears Prem have Government and locals on side which should bode well. All assumes (don't like that word) that the technology works and they can get t our of the ground in adequate quantities.

Rob you've hit the nail on the head. Businesses are in it to make money. If Parsortix saves money what is in it for them. Unlike the NHS who need to save money but they are not innovative enough to implement genuine money saving techniques. Unless of course as you say AN has the wrong strategy in wanting a significant cut of the savings rather than a 'fair value'. Scientists and Engineers are rarely any good at negotiating and perceive their inventions as world class but it's the business and financial work that pull the strings.

The Might Redcar! I prefer Saltburn myself.

SC I totally agree. In 40 years of Engineering and manufacturing experience many companies in the UK lack commercial nouse to capitalise on their technical expertise. Not many engineers can think commercially. I believe in the product and invested here although I do wonder what path this will take and my judgement (guesses?) take me down many paths.

This morning I received the refund email for my delayed flight last week. At £350 each this is a significant sum when considering the amount of delayed flights and number of passengers who will be entitled. TUI have done what is right for their business and cancelled flights to avoid leaking cash at an enormous rate. Yes bad publicity for sum but there are many more who have travelled with them and will return.
The key timing is how long will it take to implement adequate resources to return to a normal schedule especially as summer holidays are around the corner.

TT I have no need or intention to call you names.

If I had the competencies to sort out TUIs issues I would not be sharing them with this board but being a consultant with the said operator.

I would however say companies at times make decisions which are not understood by the ‘normal’ investor.