BDO SOLUTIONS FOR THE MINING INDUSTRY

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1 BDO SOLUTIONS FOR THE MINING INDUSTRY A comprehensive and integrated solution for the mining industry Miners and explorers alike operate in a continually challenging environment where cost management and process efficiency become more important every day due to unpredictable commodity pricing. Diverse locations, globalization and a tightening marketplace, where investment is hard to obtain, provide opportunities and challenges that are unique to the industry. Enterprise Resource Planning (ERP) and Intelligent Technology are now an essential element for the mining development lifecycle, and choosing a partner that handles all of the challenges the industry faces in a real-time manner is a critical aspect of proving solid support to the organization. The BDO Mining Solution is a package that rises to these challenges and has proven success in assisting miners to hit their targets. Mining is a diverse industry due to the variety of minerals produced, geographical locations, globalization, production methodology, statutory and government requirements, as well as the varied functions of the organizations. Pronto Xi has evolved to provide endlessly valuable insight into the business. The effective use of integrated technology, across any of these disciplines, can have a direct impact upon the financial well-being of an organization. In today s environment, miners rely on software for maintenance planning, inventory management, financial reports, procurement, process optimization and asset management; and in many cases this is done through separate systems without any integration. When several locations (head offices, sites, exploration camps) and geographies are used, the lack of integration can prove difficult to manage the expectations of the organization. A lack of complete integration, enterprise and ERP software that does not cater to all of these elements in a single, integrated, real-time system is a downfall that should be avoided. The solution for working through many of these industry challenges is access to a tool that helps employees perform their roles with optimum performance. The tool offered should be accessible to staff in real time, in any geographical location and in any type of role. The further the tools are embedded into the organization, the more chance the organization has of being successful. ERP, Cost Management and Intelligence Technology provide all of this functionality. Pronto Xi provides a solution that excels in cost management, reporting, intelligence, supply chain and enterprise asset management, which other packages can t provide on their own. Ramesys Global involves the operations of the organization into building accurate cost models to remove the burden of modelling from financial users and improve the management process of budgeting and measuring actuals. BDO has developed an integrated platform that services the mining industry in a way that provides all users with rapid access to information through secure and user-friendly interfaces, ultimately improving the way individual responsibilities are performed and KPIs are reached. Mining organizations operate more efficiently, continuously improving and developing with the assistance of a dedicated technology platform. The functionality behind the BDO Mining Solution is proven to assist even in the most challenging of operating environments. Key Elements to Success Enterprise Resource Planning ERP is now an essential aspect of the mining organization s decision-making process. Understanding the success levels of performance is impossible to do without such software. ERP integrates all elements of the mining organization into a platform that improves decision-making and promotes cohesion between business units that would not exist in a technology-segregated environment. Profitability and Cost Management Cost management is more than just budgeting and is critical to managing a successful mining For additional information, please contact: Marc Harris Partner [email protected] Jarrad Sonnenberg Manager [email protected]

2 organization, especially during periods of low commodity prices. In order to effectively manage costs, there needs to be more information available to users when holding departments accountable for their costs. In order to develop mining-specific cost models, information should be sourced from all areas of the organization, as opposed to simply holding the accounting team responsible for compiling budget estimates. The purpose of cost modelling is to encourage and enable better cost management practices throughout the business. The tenet underlying the success of the BDO approach is our Production Driven cost model. The basic principle of the Lean and Operational Excellence process requires that production activities are the driver of the majority of costs, and only if you can define the cost/production relationships can you truly assign accountability and cost-control mechanisms. Technology Through the use of varied technology it is possible to unite all of the information sources of a mine site into one referenceable source. Technology allows for information to be extracted from multiple source systems to display critical KPI information in one location for simplified decision-making. Consolidated information from varied systems allows for real-time information to be analyzed as there is no recurring preparation required. Technology makes information available at all times for users in any location, allowing all members of the organization to continually monitor the success of the operations. Dynamic ERP Scalability Pronto Xi ERP software offers flexible deployment options that enable mining companies to gradually expand their ERP and reduce upfront software and implementation costs. Mining companies can stage their investment with financial implementation and turn on functionality as their mining operations grow through the exploration, mining and production phases. Respond to Demand Keep up with both internal and external demand through an enterprise solution that adapts to change with the business. Handle a rapid change in transacting with a system that allows for processes to keep up with unexpected surges in activity. Adapt to Process Changes and Keep Up-To-Date with Reporting Requirements It is common for the processes of a mining organization to change quickly due to cost cutting, efficiency measures and transitioning from construction into production. It is common that after implementation a process may need to be reworked to fit the needs of the business, and Pronto Xi is built to adapt to such changes by allowing the primary functionality to be adjusted as required. Relate Business Statistics to Budgets With Material, Contractor and Workshop labour usages linked to Production s physical activities, production plan changes and price changes are flowed through to the budget in minutes so that the information comes from realistic sources instead of accounting estimates. Stay Current with Versions through Safe Upgrading Methodology Technology changes all the time and enterprise software is no exception. To ensure the most benefit possible is in use, a regular upgrade methodology is essential. All aspects of the BDO Mining Solution are upgrade proof including all software modifications. Our maintenance program covers the costs of upgrades, and any bugs that may be experienced, to help make transitioning to new releases as seamless and as risk free as possible. Report and Cost Manage on Any System Regardless of your existing enterprise application, the BDO Solutions cost-management tool, Ramesys, is integrated with numerous packages that operate within the mining industry, and drives the ability to accurately measure performance, forecast cost and make decisions based upon real industry information that makes sense to users of all disciplines. Ramesys can be tied to any ERP package and provide rapid cost management that is not available through the use of ERP.

3 Turn Key Familiar User Experience Web-based access to all applications, with the look and feel of Microsoft Office or Internet Explorer, allows users to feel at home using the BDO Solutions suite. New users can adapt quickly to the visual experience of the software, resulting in rapid user adoption. Best Practice Embedded Processes, Reporting and Data on Deployment When implementing new software there is always a push from generic vendors to implement every feature individually and develop information and processes from scratch. With the BDO turn-key solution, each installation comes with the option of streamlining the installation by taking on process, reports and data from our best-practice organizations. Reporting suites for all modules are available to provide users with fast access to relevant information and to provide inspiration to clients who may not completely understand what information is required. Select from industry-utilized GL account structures and proven processes to remove effort and minimize cost in implementing a comprehensive mine management solution. Custom Tailor the Package to Your Own Organization A solution is a value-add component of an organization that needs to readily meet all of the needs of operating in a mining environment. The BDO Mining Solution can be completely tailored to the needs of any mining-related organization. It is common that shortcomings in software force an organization to operate in a very specific way to meet the needs of the software, which may not necessarily meet the best practices of the industry or solve any specific problems. This can be avoided by using a proven solution. Custom Code Ready for Company-Specific Needs The unique challenges presented in the modern mining industry often present specific problems that cannot be solved by conventional processes, such as third-world users, complex foreign tax initiatives, changing government requirements and one-off projects. Customizing any of the elements of the BDO Mining Solution provides a well-supported and efficient way to create company-specific protocols to provide further advantage over competitors. It is possible to modify any element of the software to completely mold the solution to the needs of even the most demanding business processes. Allow Users to See and Visualize Information Their Own Way Everybody has a preference to how they do their work and how they impact the company. The BDO Mining Solution allows users to develop their own templates and reports to visualize information in any way they feel necessary to perform their responsibilities. At the corporate level, it is possible to develop different formats for different business units. For example, you can format the details of the general ledger in a summarized fashion for operational staff but only show the details for accounting staff. The opportunity to display information is endless and enables organizations to empower their employees to analyze their information with ease. Key Functional Elements User Experience Front-end software that is easy to navigate through either a Web-based UI or a thin client. Interfaces that reflect the normal operating environment of the user s operating system. Two-way interfaces with Microsoft Excel to ensure those with a proficiency for data manipulation in Excel are able to perform in an interchangeable manner. Operate seamlessly over limited bandwidth; perfect for remote operations. Customizable Users have the ability to edit their own menus and terminology, providing the power to enhance their everyday experience. Manipulate data and reports and save templates to be able to quickly and easily access information in the most relevant way for each responsibility type. Build upgrade proof custom programming, reports and screen modifications with ease. Business Intelligence Integrate with Microsoft Office with the touch of a button. Web-based reporting that brings everybody within the organization into the reporting of the organization. Embed business intelligence into s and intranets to give all employees continual access to information. Accessibility to offline reporting. PDF/Excel compatibility for every report within the suite. Forecasting and Budgeting With Material, Contractor and Workshop labour usages linked to Production physical activities, production plan changes and price changes are flowed through the budget quickly. All the modelling assumptions are completely visible to, and managed by, the person responsible for spending the budget, which results in a greater understanding of the company s performance. Since the relationships between cost and the physical statistics that drive these costs are locked into BDO templates, updating budgets and forecasts is a quick and easy process. Accountable cost owners are the ones that build and maintain the budget and forecast models. Accountants are no longer required to compile and validate data from multiple operational users.

4 International Currency proof international system with room for up to 20 operating currencies and endless transaction currencies to stand up to even the most globalized organization. Report using multiple base currencies when operating in countries with unique currency statutory requirements. Operate seamlessly with minimal bandwidth at full capacity from anywhere in the world, even mining and exploration sites with limited Internet connectivity. Financial Management General Ledger Take a proven off-the-shelf example or design a completely unique chart with up to 32 characters and 8 segments that can adapt to any mining organization. Consolidate endless entities seamlessly and automatically to reduce month-end processing time and improve consolidated visibility. Automated GL postings for all modules and ledgers to promote accuracy for all user data entry through an intelligence interface. Intercompany postings occur seamlessly between companies within the company structure with automatic reconciliation occurring nightly and identifying any cause of imbalance. Budget management for up to 36 budgets and forecasts that integrates with Microsoft Excel for rapid budget export and import, and full visibility of budgets against actuals. Accounts Payable Effortlessly produce electronic or cheque payment for thousands of vendors and invoices through an intuitive payment process. Store vital information against all vendors for reporting and identification purposes. Transact in endless currencies and produce automatic online banking payments for any bank in the world. Forecasting and Budgeting Fixed Asset Management With Material, Contractor and Workshop labour usages linked to Production physical activities, production plan changes and price changes are flowed through the budget quickly. All the modelling assumptions are completely visible to, and managed by, the person responsible for spending the budget, which results in a greater understanding of the company s performance. Since the relationships between cost and the physical statistics that drive these costs are locked into BDO templates, updating budgets and forecasts is a quick and easy process. Capital Asset register with comprehensive information storage to assist in tracking and identifying assets. Asset tracking system for the movement of assets and ability to continually review physical locations. Depreciation for all globally accepted depreciation methods, with up to 20 regimes available.

5 Human Resource Budgeting Procurement Warehouse Management Catalogue Management Develop Labour model(s) based on a bottom-up design principle using components directly available from the organization s HR system that is, positions and applicable allowances. Provide reporting that will allow the following: Summary cost view of Labour Costs for import to RAMESYS Financials scenario. Analysis of labour costs at both detailed individual position and allowance cost levels and at summary levels (e.g., department). Comparison of actual labour costs to budget and forecast. Ensure sensitivity of the data is protected and controllable. Automated Reorder Replenishment based upon company-defined variables to expedite the ordering process. Generate purchase orders and RFQs based upon numerous parameters that give the purchasing department the ability to easily fill the demand of the operations. Enhance purchasing department s ability to support procurement policies and processes. Robust internal requisitioning system to facilitate the procurement of non-catalogued items. Approval matrix based upon organizational hierarchy and spending limits to add control to the ordering process with an automated acknowledgement system for continual communication between requestors and purchasers. Control over outbound inventory with picking slip management that directs costs to the general ledger, projects and work orders automatically. Add approval levels to ensure inventory is properly reviewed prior to releasing it into operations. Metrics. Location management for tracking inventory to each bin location, to improve accuracy and add control over inventory. Use bar codes to track items and locations electronically. Central Control Categorization Enterprise Asset Management (EAM) EAM Budgeting Alert Intelligence Streamline maintenance processes through work orders, planned tasks and scheduling to implement a proactive and predictive approach to maintenance. Industry-leading Plant Maintenance software that is completely integrated into the ERP system to provide instant visibility into the planning lifecycle. Relationships between plant items/work orders/planned tasks and inventory allow for the accurate and timely planning of inventory procurement through stock items being committed as work is planned. Schedule labour and responsibility onto the maintenance plan to highlight labour shortages and improve on maintenance staff utilization. Embedding of consistent, repeatable business planning and cost-improvement processes. Improved accuracy and confidence: significantly improved quality of data used for planning, reporting and cost management. Improved cost control: cost reductions are the outcome of improved cost understanding and management challenge. Elimination of high-level cost assumptions. Significant reduction in turnaround times and effort required in planning and reporting cycles. Much greater transparency of decision-making information. All budget numbers are able to be challenged as the underlying assumptions are totally transparent. Alert users or groups of users to any change in data through SMS, , Fax or on-screen notifications. Develop customized workflows to improve efficiency and minimize manual navigation by tying processes together seamlessly. Protect your organization with hidden alerts when critical information within the system changes such as bank details or wages and benefits.

6 Data Intelligence Security Financial Compliance & Internal Control Tenement Management Reporting Distribution Document Transmission A robust and wizard-driven data analysis tool for quick access to data listings. Empower users to extract relevant data from the system to assist with the decision-making process. This is the perfect tool for reconciliation. Control over user access to the level of specific functions and the ability to develop customized organization-specific user access profiles to improve internal control and segregation of duties. Audit everything that happens within the system for full visibility into the transactions and master data changes that occur. User-specific menus to improve productivity by removing any unnecessary processes and streamlining the users thought process when selecting functionality. Optimize financial operations through a powerful array of finance modules to cover all complexities arising from operating in international, multicurrency and multi-entity organizations. Adhere to the strictest of internal control with the ability to modify user access at the function level, creating a completely segregated environment where required. Complete audit visibility over every field within the ERP. Tracking and allocating costs to tenements. Detailed budget management, with the ability to measure costs across tenement Types, Locations and an endless array of user-definable analysis codes. Integrate all tenement costing into the GL immediately to provide robust reporting and timely information for explorationfocused companies. IFRS-compliant reporting processes. Create user or business unit-specific reporting profiles and automatically distribute reports on any schedule (Monthly, Daily, Weekly, EOM, etc.). Never produce physical documentation again. With built-in documentation transmission for any document, automatically send purchase orders to all vendors electronically, or forward remittances to thousands of vendors through one process. About BDO Solutions BDO Solutions helps organizations align technology to their overall business strategies using Microsoft technology. BDO Solutions specializes in Business Analytics, as well as consulting, implementation, training and support for the following Microsoft products: Microsoft Dynamics AX, GP, NAV, CRM, Office 365, SharePoint and Power BI. BDO Solutions enables clients to streamline their business processes and improve overall operational efficiency with on-premise, hybrid and cloud solutions. About BDO BDO is one of the nation s leading providers of assurance, accounting, tax, and advisory services. With strengths firmly rooted in the communities we serve, our professionals deliver highly individualized services informed by deep industry knowledge and nearly 100 years of experience working in local markets throughout the country. And with resources across Canada and around the world, BDO provides seamless and consistent cross-border services to clients with international needs. BDO is an international network of public accounting, tax, and advisory firms that performs professional services under the name of BDO. With nearly 65,000 people working out of more than 1,400 offices in over 150 countries, the network generates worldwide revenue of $7.30 billion.