GFMS, a precious metals consultancy, specialising in research into the global gold, silver, platinum and palladium markets, has launched a new venture, GFMS Mine Economics. GFMS Mine Economics’ objective is to become a leading consulting business, delivering high quality, detailed insight into the economics of mine production, across a broad range of metals and minerals. Mark Fellows has been appointed Managing Director of GFMS Mine Economics. From 1999 to 2005 Fellows was a Director of mineral economics consultancy Brook Hunt (BH), where he was responsible for BH’s gold mine costs study and numerous bespoke consulting assignments.

He is joined by mining geologist Paul Wheeler, who is also a part-time lecturer at Camborne School of Mines, and George Coles, a graduate in business economics. GFMS Mine Economics is developing a range of multi-client mine cost studies, commencing with detailed research into the economics of diamond mining, and a platinum group metals cost benchmarking study.

Fellows: “Our many years experience in mine cost benchmarking has shown us that at times of economic stress, mining companies and financial institutions are more concerned than ever about margins, costs and cash flows. We will provide accurate, detailed mine-by-mine analysis, based on the key drivers of $/t mine site costs; resource quality, orebody geometry, mining and processing methods, labour productivity, energy usage, services and consumable input costs. Whatever the commodity in question, by benchmarking these technical and operating parameters we aim to provide the best possible insight into mining industry cost structure. Our overarching goal is to add value for our clients by supporting their strategic decisions; in that regard our mine cost analysis has powerful synergies with GFMS’ high quality market analysis and price outlook work.”