text:
This action might not be possible to undo. Are you sure you want to continue?
Strategic long term planning in mining
by G.L. Smith*
The fundamental challenge facing mineral and metal companies is how to create sustainable value while operating within mandated strategic bounds, identified constraints, and variable market and economic conditions. This can be achieved by allowing the fixed physical nature of the mineral asset to drive definition of the optimal technical solution to mining and processing activities, and developing and resourcing a strategically aligned portfolio of production entities that creates flexibility to near- and longer-term business environment shifts, i.e. a production mix that allows variation of output to respond to short term market variation, within a long term context. The practical achievement of this outcome is enabled by the concept of strategic long term planning. The core elements of strategic long term planning in the metals and minerals industry, and the relationship between them, are expanded. The strategic long term planning framework is a logic construct that enables delivery of an optimized, strategically-aligned business plan from the mineral asset portfolio using a set of tools and techniques with a common language, standards, systems and processes to align decisions and actions on a cyclical basis.
perspectives, i.e. define the value proposition under different scenarios – what are the options? ® Develop and resource a portfolio of production entities from the mineral asset portfolio that creates flexibility to near- and longer-term business environment shifts, i.e. create a production mix that allows variation of output (minerals/metals, operating cost, capital intensity) to respond to market demand and pricing. These activities require a structured, integrated approach across all elements of the business value chain from exploration through to product sales. The solution lies in systematic application of a series of tools and techniques, within a conceptual framework or philosophy, that aligns decisions and actions across the company, using a common language, standards, systems and processes, and defines the concept of strategic long term planning.
P r e s i d e n t i a l A d d r e s s
For a minerals and metal company to create sustainable value from mineral assets, it is necessary to: ® Optimize the composition of the mineral asset portfolio to align with strategic and business objectives ® Create and operate long term assets within an anticipated long term business environment ® Create and retain flexibility of short term tactical response that allows effective response to short term shifts in the business environment. To achieve this, it is necessary to: ® Allow the fixed physical nature of the mineral asset(s) to drive definition of the optimal (lowest capital cost, lowest operating cost, highest efficiency, maximized cash flow) technical solution to mining and recovery activities ® Define and apply different business environment perspectives, world views, or scenarios, to determine possible economic viability under the different
The Journal of The Southern African Institute of Mining and Metallurgy VOLUME 112
Strategic long term planning
Minerals and metal companies require mineral assets to generate value and attract investment (financial and social). Value generation from the mineral asset(s) is achieved through the application of a suitable business model. Mineral resources are the underlying value construct of the mineral asset. The physical characteristics of a mineral resource such as type and nature of mineralization, and physical structure (depth below surface, shape, extent, dip, surface topography, etc.) are fixed and do not change over time. However mineral assets exist at a place (a specific fixed location) so defining a context (e.g.
* Anglo American Platinum Limited, Johannesburg, South Africa. © The Southern African Institute of Mining and Metallurgy, 2012. SA ISSN 2225-6253. Address presented at the Annual General Meeting on 15 August 2012.
Strategic long term planning in mining
Figure 1—Strategic long term planning—complexity and options relative to nature of operations
stakeholders, legal, social, environmental, infrastructural) that may change over time according to social and political evolution. This is the spatial context that encompasses location and associated operating environment. The selection of a mineral asset portfolio is affected, in the business context, primarily by the perceived financial value (investment quantum, returns, and duration), arising from the mineral asset(s). This value construct is driven primarily by the physical nature of the mineral resource (size, content, and depth, which drive exploitation technology selection), the anticipated market demand for products arising from the mineral asset(s), and an accepted level of business risk in realizing the perceived value. All of these, except the physical characteristics, are influenced by near term and forecast long term, economic and market variables. The complexity and extent of possible options that arise under these circumstances increases with movement from a single commodity, single operation in one country business through to a multi-commodity, multi-operation, multinational enterprise as represented schematically in Figure 1. The combination of the spatial context, economic, market, and technical variables can be defined in a range of possible strategic scenarios or world views in which the value from the mineral asset(s) could be realized. The world view attempts to capture the interdependence and uncertainty associated with key elements of the spatial and business contexts across the long lead times associated with financial returns from mining activities. Strategic long term planning of mineral and metal companies must therefore incorporate elements of: ® Optimization of the mineral asset portfolio composition ® A long term perspective of a possible business environment ® Flexibility of exploitation options in the short term.
Within this context, strategic long term planning therefore requires a cyclical reassessment of exploitation options (and the composition of the mineral asset portfolio), in the context of anticipated changes in the near- and longterm business operating environment. This results in a near term tactical response (typically in a budget period) and a longer-term strategic response (the long term plan), both of which are encapsulated in the company business plan. The philosophy of strategic long term planning is simple—it is an integration of logic, process, and methodologies to facilitate long term planning of mineral asset exploitation, within a strategic and market context. Simply put, it creates the link between the market requirements, business strategy, and tactical planning activities. Strategic long term planning creates the basis for the development of a portfolio of operations, current and future, that ensures optimal resource exploitation and creates the flexibility to respond to changing economic and market conditions while operating within legislative and mandated strategic constraints. The nature of these components, and their interrelationship in the strategic long term planning process, is schematically represented in Figure 2. Interpreting Figure 2 from the bottom upwards: ® The global and national business environments, in conjunction with the characteristics of the market for mining product(s), create the context in which world views or scenarios are developed for application in planning. Critically, this creates the understanding of the business environment in which the mining company operates but also understanding of the key drivers of change from one economic state to the next ® World views or scenarios (the centre link part of the diagram) are developed and used to develop long term planning parameters (global assumptions) that
The Journal of The Southern African Institute of Mining and Metallurgy
Strategic long term planning in mining
represent the relevant underlying assumptions for each scenario, e.g. metal prices, exchange rates, escalation, etc. These planning parameters inform the financial analysis and optimization of the business plan, and create the link between mineral asset portfolio utilization and the market ® The annual cyclical business planning process is conducted utilizing the planning parameters (global assumptions) associated with the preferred or most likely world view. The physical characteristics of the individual mineral assets within the portfolio determine the development of a mine extraction strategy, the mining right plan, the budget, and long term plan per asset and collectively for a multi-asset business. Concurrently value is optimized through application of value-based management principles during the development of the strategic long term plan—at mineral asset level and company level for a multi-asset organization. The business plan then forms the basis upon which the organization is structured and resourced. Supporting, aligned execution plans are developed for the necessary supporting activities in finance, human resources, projects, engineering and infrastructure, and sustainable development, all of which take place in an annual planning cycle. ® The composition of the mineral asset portfolio is then reviewed and optimized relative to the most likely scenario, the current state of execution of projects, and company strategic intent. ® The business plan, which is the core output of the strategic long term planning process, is then reassessed for a possible shift to the next most likely world view. Real options arising from evolving alternate trajectories are evaluated and a contingency plan is developed, based on planning parameters associated with the alternate scenario.
The operating context
The global and national business environments, in conjunction with the characteristics of the market for minerals and metals (and products) create the context in which a mining and metals company operates.
P r e s i d e n t i a l A d d r e s s
Key elements of this context are Characteristics of the mineral resource
The mineral resource is the primary asset underlying value creation through the mining, recovery, and sale of metals or minerals. The objective is to facilitate understanding of the nature of the mineral resource(s) and the geological context in which the business would be operating.
Figure 2—Schematic representation of the relationship of key strategic long term planning elements
The Journal of The Southern African Institute of Mining and Metallurgy VOLUME 112 PRESIDENTIAL ADDRESS SEPTEMBER 2012
Strategic long term planning in mining
Characteristics of the metals/minerals market
Understanding of the market and participants informs valuebased decisions and influences strategic actions. The key tools to facilitate market understanding and intelligence are: ® ® ® ® ® Porter's 1980 'five forces' analysis Market information and understanding in the form of a 'fact base' An annual industry and competitor analysis Industry cost curve analysis Supply/demand/pricing analysis and modelling. business environment is dominated by a legislative environment that has been created to move South Africa from a racially biased society to a true, majority-based democracy. The legislative environment is a key enabler of mining and business activities. Acquisition and effective exploitation of mineral assets is predicated on a well-defined and effective system of legal tenure that will allow investment in long life assets. The exploration for and subsequent exploitation of minerals in South Africa is subject to a wide range of legislation and regulation; however, mineral asset acquisition and exploitation is governed primarily by the Minerals and Petroleum Resources Development Act (MPRDA) and associated regulation. The social licence to operate is further impacted by the Mining Charter. Understanding and operating within the context of the legislation applicable to the minerals industry is thus a requisite for effective business functioning and strategic long term planning. Each of these contextual elements contributes to, and influences, the world views or scenarios that create the context in which business planning takes place.
Critically, the interpretation of market understanding and intelligence manifests in the strategic long term planning framework through world view or scenario development and the associated global assumptions that are applied throughout the business planning process. Understanding of the market and the environment in which the business functions informs the building of world views or scenarios and the associated global assumptions that are used to develop and optimize the investment centres that comprise the business plan.
The industry value chain
The objective is to describe the major elements within the value chain and highlight areas of strategic planning flexibility. The nature of the value chain is integral to the understanding of the characteristics of the market.
Assumptions on the future—world views and planning parameters
The reality of the business environment is that it is increasingly complex and dynamic. Developing an understanding of the uncertainty inherent in the external and future environments, and testing the robustness of strategic plans against a set of possible futures, is a critical component of strategic long term planning. Analysing key global trends and seeking to influence the possible business future(s) requires a widening of perspective to a range of possibilities. In the strategic evaluation of mineral asset exploitation options, a view must be taken of possible future(s) and associated parameters that will influence investment decisions. This view, which is encapsulated in a set of common long term planning parameters (the global assumptions), can and does change in line with macroeconomic drivers. While a project development and execution team correctly focuses on ways to mitigate risks associated with local assumptions (project-specific, technical uncertainties), it is imperative that strategic decisionmakers are aware of, and understand, the significance of global assumptions that have a bearing not only on specific project investments, but rather the entire portfolio of mineral assets held by the business. The complexity of long term planning parameters (typically forecasts of exchange rates, inflation rates, metal prices, cost escalations, capital escalations, working capital, etc.) and the relationships between them and events that occur in the global economy requires that inherent uncertainty in investment decisionmaking and portfolio planning is communicated through scenario planning. The link between the operating context and the planning of exploitation of the mineral asset is that of world views or scenarios. These are constructed and used to develop long term planning parameters (global assumptions) that represent the relevant underlying assumptions for each scenario, e.g. metal prices, exchange rates, escalation, etc. These planning parameters inform the financial analysis and optimization of the strategic long term plan and the business plan.
The Journal of The Southern African Institute of Mining and Metallurgy
Global business environment
The global business environment can be defined as the global environment that influences local decisionmaking on resource use and capabilities. This includes the social, political, economic, regulatory, tax, cultural, legal, and technological environments. As businesses have no control over the external environment, their success depends upon how well they adapt to the external environment. The ability of a business to design and adjust its internal variables to take advantage of opportunities offered by the external environment, and its ability to control threats posed by the same environment, determine its success. The nature of the global business environment will have an effect on the nature of demand and resultant selection of orebodies for mining. Global economic activity is the driver of consumption of product from the minerals and metal industry. Changes in economic activity have a direct and immediate impact on the industry as they impact demand and ultimately pricing. Anticipating possible scenarios is thus crucial. The critical aspects of the global business environment must be incorporated into the strategic planning framework in order to align long term investment with probable market demand scenarios. This is done through integration of world views that adequately encapsulate the key global dimensions into the planning process.
National business environment
Similar to the global business environment, the national business environment considers the social, political, economic, regulatory, tax, cultural, legal, and technological environments of the country in which the business is operating. Typically this tends to be focused on legislative and socio-political components. In South Africa, the national
Strategic long term planning in mining
Importantly, world views and the development of associated long term planning parameters do not change normal, accepted processes and techniques of business strategy definition. The application of these tools inside the strategic long term planning process provides critical input into the initial stages of information gathering (via the world views or scenario process) and in the identification of critical issues/options facing the business (via the real option analysis process when considering possible trajectories to alternative world views and associated asset extraction plans). The key processes and tools to develop world views and the associated planning parameters are: ® Scenario planning or world view development ® The development of the long term planning parameters. global economic activity and metal/mineral dependency, with descriptors of the world views in each quadrant. Dependent on the number of scenarios developed (typically three, maximum four), alternative business options can then be developed with identification of suitable trajectories between scenarios, dependent on changing circumstances or progression between scenarios over time. The critical difference in this approach is rational movement towards an identified and agreed world view (previously introduced through the scenario development process), rather than an ad-hoc crisis-driven response. The organization knows what trajectory to follow as the contingency positions have been previously defined.
Long term planning parameters (global assumptions)
Cash flow estimates used in discounted cash flow analyses are fundamentally derived from estimates of revenue, operating cost, and capital cost. Extensive effort is directed at estimating costs (both operating and capital) to accuracy levels of less than 10 per cent error during the feasibility studies. Similarly production, grade, and metallurgical recoveries are estimated at comparable levels of accuracy to drive the revenue line. However, an area that is often not subject to the same rigour is the impact on plan viability of assumptions regarding metal (commodity) prices, exchange rates, inflation rates (domestic and foreign), and escalation factors (capital expenditure and operating expenditure). On the assumption that these global parameters are usually rigorously determined for a five-year period and then maintained at long term trend estimates, the adoption of an optimistic or pessimistic long term perspective can have a significant effect on projects with 15–30 year life spans. The risk of not undertaking viable projects because of a pessimistic long term view, or conversely undertaking marginal projects because of an optimistic long term view, is mitigated through the use of scenarios or world views plus real option valuations. Estimation of these long term planning parameters in the context of anticipated business world views or scenarios is therefore critical. A critical step in understanding the future is an understanding of the key drivers that determine future developments. These so-called driving forces or causal factors are many and are often complex in their relationships. The relationship of these key drivers can be mapped using causal loop diagrams from which a simplified view of the interrelationship of these driving forces or casual factors can be derived. In this approach the less predictable factors (unknowns/uncertainties) are used to infer the parameters, which are more predictable, which in turn influence the parameters which are utilized in the planning parameters. The logic being that once a view of the outermost parameters has been established (from a scenario), the parameters of the inner shells can be progressively inferred, creating a consistency in the parameter logic that is driven by the possible future world view. This framework provides guidance as to which parameters ought to constitute the global assumptions, keeping in mind that the purpose of the global assumptions is to create a link between the vagaries of a possible future world and actual parameters that are quantified for investment analysis. In this context the development of alternative global assumptions to align with alternative
P r e s i d e n t i a l A d d r e s s
Scenario planning (world views)
The scenarios or world views that are developed as part of the strategic long term planning process are integral to the optimization of the mineral asset portfolio; they inform the development of long term planning parameters (the global assumptions) and impact strongly on contingency planning and real options assessment. Critically, the world views or scenarios create the link between the market, the global and national business environments, and the utilization of the mineral asset portfolio. Developing an understanding of the uncertainty inherent in the external and future environments, and testing the robustness of any strategic plans against a set of possible futures, is a critical component of long term and strategic planning. Analysing key global trends and seeking to influence the future(s) requires opening our minds to a range of possibilities and discontinuities. The complexity of strategic problems and the need to find acceptable solutions requires using methodologies that are innovative, rigorous, and participatory. The development, socialization, and adoption of common world views can be facilitated through a workshop process where scenarios are created as a way of presenting alternative future world views, and from which critical long term planning parameters can be developed.
Key elements of this workshop process comprise
® Learning: developing shared understanding of the methodology and theory, and setting the context ® Scope definition: clearly defining the scope to ensure focus ® Determination of the key variables and drivers specific to the industry e.g. demographics; innovation, science and technology; geopolitical relations and the role of China; the global economy and globalization; natural resources and the environment ® Exploring key themes (e.g. metal/mineral demand, society issues such as the social licence to operate, government issues, environmental issues, technology and alternative applications, capital and operating cost escalators, competitor actions, etc.) aimed at raising key drivers, key questions, and setting the context ® Developing scenario themes and storylines ® Writing up the synthesis and scenarios ® Reviewing the outputs. Typically, outputs are visually presented relative to two orthogonal axes representing primary drivers of change e.g.
The Journal of The Southern African Institute of Mining and Metallurgy VOLUME 112
Strategic long term planning in mining
future world views is not so much a forecasting exercise, but more a means of understanding the implications of uncertainty and facilitating the testing of investment decisions in the context of future uncertainties. Consistency in the logic of generation of parameters associated with alternate future world views is therefore paramount. Derivation of the specific global assumptions associated with each scenario is normally conducted separately to the scenario development process. Various technical experts are identified (internal and external to the organization) from different disciplines (economics, marketing, finance, supply chain, capital projects, estimators, etc.) and presented with the scenarios with a request for relevant inputs. In some instances, certain parameters become inputs to other parameters. For example, the view on GDP and inflation is used as input into the expert opinion regarding cost escalation. On collation, the global assumptions are circulated within the same expert group for final comment and alignment as necessary. This approach creates better understanding of parameter interdependency and clarity on the scenario structure, while testing internal consistencies. Within this approach the following logic applies: ® The cost escalations and demand environment will be driven by descriptors within each scenario ® The metal price forecast is triangulated using cost margins, incentive prices, and analysts' views ® There will be a trend to flat, real-money terms, long term prices when supply and demand are in balance. The global assumptions are a set of long term planning and economic parameters that best encapsulate the external drivers of value associated with a scenario or world view to be applied in business planning. The aggregated parameters provide a descriptor of a current and future world view and transition between the two. Crucially, the global assumptions provide the link between the agreed world views or scenarios and the associated economic parameters for business planning purposes. The global assumptions create discipline and uniformity of assumptions, as they are the only economic planning parameters permitted to be applied across the organization for planning and valuation purposes. This facilitates comparison and ranking of options. arising from evolving alternative trajectories are evaluated and a contingency plan is developed, based on planning parameters associated with the alternative scenario. The business plan then forms the basis upon which the organization is structured and resourced. Supporting, aligned execution plans are developed for the necessary supporting activities in finance, human resources, projects, engineering and infrastructure, and sustainable development. All of these activities take place in an annual planning cycle. Execution of this process, in a planning cycle, requires attention to: ® Business strategic definition ® Business value optimization (value-based management for identification and choice of business model options) ® Long term planning procedures (planning cycle, mine extraction strategies, mining right plans, long term plans) ® Capital investment prioritization, real option analysis and project value tracking ® Portfolio optimization ® Definition of the long term plan and business plan ® Definition of upside or downside responses (contingency plan) ® Execution plans for supporting capability: • Project portfolio execution • Metallurgical process capacity (smelting, refining, effluent) • Infrastructure (water, electricity, roads, rail, housing) • People (skills, motivation, organisational culture) • Community (stakeholder alignment and participation). These activities are not necessarily sequential, as feedback loops occur between different activities at different points in the planning cycle. This process is schematically represented in Figure 3.
Business strategy definition
Overall company strategy, as defined and communicated by the Board, directs the execution of the business objectives and provides the framework for decision making. This is the starting point for strategic long term planning for metals and minerals entities. Typically, company strategic planning follows elements of: ® Information gathering and analysis (internal, external, market) ® Identification of critical issues facing the organization ® Development of a strategic vision statement that sets future direction ® Mission statement review/revision ® Development of strategic goals ® Formulation of strategies for each goal ® Preparation for operational planning based on the strategic plan. In the strategic long term planning approach, the company strategy directs the objectives of value-based management and defines prioritization logic in the long term planning process, i.e. the overall mineral asset portfolio optimization process is directed by the company's strategic intent.
The Journal of The Southern African Institute of Mining and Metallurgy
The planning and decision making process— business planning
The annual cyclical business planning process is executed using the planning parameters or global assumptions associated with the preferred or most likely scenario/world view. The composition of the mineral asset portfolio is reviewed relative to the most likely scenario, the current state of execution of projects, and company strategic intent. The physical characteristics of the individual mineral assets within the portfolio determine the development of a mine extraction strategy, the mining right plan, the budget and long term plan per asset and collectively for a multi-asset business. Concurrently, value is optimized through application of value-based management principles during the development of the strategic long term plan—at mineral asset level and company level for a multi-asset organization. The business plan, which is the core output of the strategic long term planning process, is then reassessed for a possible shift to the next most likely world view. Real options
Strategic long term planning in mining
P r e s i d e n t i a l A d d r e s s
Figure 3—Business planning – key elements and interrelationship
Conversely, the global and local context, along with the developed world views, influence company strategy as part of the information gathering and analysis processes, in the overall strategic planning for the business. Similarly, the real option analysis of the value of possible trajectories/ exploitation choices for the business comprises inputs to the aspect of identification of critical issues facing the organization. The core outputs of the strategic long term planning process are thus also critical inputs into the overall company strategy.
What is different, however, is the adoption of the logic and its application to the strategic long term planning framework. The key question that VBM answers in this process is: What is profitable growth, now and in a possible future world view, and which of the options should be prioritized?
Long term planning process and procedures
The overall objectives of the long term planning process are to create alignment of activities to a common company planning calendar; to ensure utilization of common logic and tools that allow comparison between operations and options; and to generate a common business plan that drives execution of the company strategy. The business planning activity creates a central process around which the business organizes planning activities to meet the needs of the Executive and the Board. It creates an annual rhythm to activities, so that all parties are aware, through the 'five Ps' of the planning process (philosophy, programme, process, product, and people) of what must be done, by whom, by when, and to what standard to meet the company's planning needs. Alignment with support activities is ensured through use of the long term plan as the base plan for resourcing, capability, and infrastructure establishment. The long term planning process ensures optimisation at mining right area level, with strategically aligned constraints, before consolidation and optimization at a mineral asset portfolio (company) level.
Business value optimization (value-based management)
The logic inherent in value-based management (VBM) is not new to business or the mining industry and has been practised in a variety of forms for several years. Value-based management as a process, within the strategic long term planning framework: ® Provides a set of metrics and a logic framework for value and prioritization discussions ® Ensures alignment of objectives, establishes a common language, standards, and processes to align decisions and actions ® Provides a common approach to setting goals, identifying issues and opportunities, making decisions, allocating resources, and taking action ® Creates a common set of tools and approaches to understand sources and drivers of value, to prioritize issues and evaluate options.
The Journal of The Southern African Institute of Mining and Metallurgy VOLUME 112
Strategic long term planning in mining
Each operation should develop and articulate a mine extraction strategy (MES), from which a mining right plan (MRP) can be developed and the budget and long term plan (LTP) extracted, to form the overall business plan (BP). Each step in the process is a path along a decision tree with choices being identified, rationalized, motivated, and implemented. The long term plan then informs all other disciplines within the business as to supporting requirements to create the business plan. For example, the LTP will inform the concentrator and processing strategies to ensure alignment with overall group strategic objectives. Similarly, in the human resource area it would provide the basis for staffing, skills development, and housing requirements. The business plan covers the life of the operation or the first 60 years (two periods of 30 years to align with the MPRDA,) whichever comes first. It comprises a combination of investment centres at different levels of confidence of estimate, viz. level 1, 1e, 2a, 2b, 2c, and 3 (see below). The business plan forms the basis of the production and cost (opex and capex) forecasting for the company and is used for capital prioritization and value optimization. The mine extraction strategy is not the plan but a clear, motivated statement of the basic rules that will guide development of the mining right plan and the subsequent long term plan upon which investment decisions will be made. The mine extraction strategy thus informs the nature of the mining right plan specifically: optimal scale, relative production from different ore sources, basic infrastructure options, and critical constraints. The MES is an unconstrained view of the ultimate potential of the mineral asset. The mining right plan is a physical depletion plan that covers the area over which mining rights have been granted in terms of the MPRDA. As such it is not time-limited and has a life, which is a result of the optimal scale of operations as identified in the mine extraction strategy. The MRP is driven by the mine extraction strategy (scale of operations, layouts, existing asset base, production sources, constraints). It is not necessary that the MRP options all be economically viable, but rather that the full extent of the mining right area be planned in a technically defensible manner at estimates that are current for capex, opex, and the global assumptions. Several options (normally extraction sequencing) should be developed in order to identify an optimized plan (maximized NPV) plan. The planning horizon of the MRP must cover the entire mining right area—viz. it is not time-constrained but spatially constrained (the mining right). A comprehensively scheduled mining right plan (MRP) will result in a view of the mineral resource potential and the mining and concentrating capacity and cash flow required to achieve it. The MRP forms the basis of annual reporting and updating of the mine works programme as required by the Minerals and Petroleum Resources Development Act. The MRP is reviewed and updated annually as part of the long term planning process. The LTP is a plan (and associated economic analysis) indicating the optimized extraction option selected from the MRP. Cash flow estimates from the LTP are used to forecast estimates of value for a project, a mine, and the company. The LTP is constructed from investment centre models representing logical mining units (by reef type) and project area. It comprises a combination of investment centres at different levels of confidence of estimate, viz. level 1, 1e, 2a, 2b, 2c and 3. The MRP and LTP leading to the business plan comprise a number of investment centre models representing planning at varying levels of estimate confidence. Logically, as study work is completed, investment centres progress from the lowest levels of confidence estimate through to execution. Level 1 plans are effectively current operations (level 1) and approved projects in implementation/execution phase (level 1e) that have necessary project capital expenditure authorized and thus require only stay-in-business capital expenditure for the balance of planned life. Level 2 plans are effectively proposed capital investments or projects and are divided into three sub-categories (a, b, and c), which are related to the confidence stage at which the respective proposed capital investment or project was last reviewed. These sub-categories are governed by a stage-gate review and approval process and comprise: ® Level 2a (feasibility study at ±10 per cent estimate confidence) ® Level 2b (pre-feasibility study at ±15 per cent to 20 per cent estimate confidence) ® Level 2c (conceptual study at ±25 per cent to 30 per cent estimate confidence). Level 3 plans effectively cover the remaining extent of potentially exploitable resource within the area covered by the current mining authorization. The level 3 plans are at best scoping studies, may be based on inferred mineral resources, and generally not subjected to a rigorous stagegate review process. Two sub-categories exist in level 3; 3a and 3b: ® Level 3a (scoping study at > 30 per cent estimate confidence) ® Level 3b (scoping study at > 30 per cent estimate confidence based on pre-resource material, 'blue sky' opportunities). Despite the best efforts to plan and find viable means of extraction, an investment centre (project) may not form part of the business plan for two reasons: economics or insufficiency of engineering work. This gives rise to two other categories: ® Not in business plan—NIB (eng)—these are uneconomic investment centres that may have been subject to extensive study work through to prefeasibility level but are uneconomic for current long term planning parameters ® Not in business plan—NIB (nw)—these are investment centres that have not had any study work done on them to date or where exploitation is planned well in the future (>30 years). The relationship of levels of planning to one another and to time is shown in Figure 4.
Contingency planning
Contingency planning identifies a controlled trajectory toward reduced or increased output relative to that originally planned in the long term plan and the business plan. Changes in output are likely to be necessitated through radical market
The Journal of The Southern African Institute of Mining and Metallurgy
Strategic long term planning in mining
P r e s i d e n t i a l A d d r e s s
impacts on mining rights or ability to meet BEE requirements ® Investments required to ensure that future mine economics are sustainable ® The ability to effectively mothball (place on care and maintenance) investment centres and restart operations should market outlook improve ® The potential to reduce fixed cost and the overall impact on the financials. The development of these priorities requires input from multiple parties including the operations, projects, processing, and planning. Annually a contingency plan is developed as part of the long term planning process.
Figure 4—Schematic relationship of long term planning level categories
shifts, i.e. a shift to a different world view ahead of the expected timeline. Typically downside shifts are rapid and brought about by crisis, while upside shifts tend to be more gradual as markets tend to expand at a sustainable growth rate driven by capital cost and availability. Contingency planning is the preparation for an unexpected, rapid shift in industry dynamic. Despite development of world views or scenarios, the rate of change between anticipated world views is difficult to anticipate. Generation of contingency plans allows a rational, controlled shift between one operating state and the next based on earlier analysis. It is a means of reducing the scale of crisis through anticipation and prior sensitization. Contingency planning recreates the link between the business plan and the world views by creating an iterative loop based on a different set of global assumptions. This process is real option valuation and drives re-optimization of the long term plan and the mineral asset portfolio composition in the light of a possible alternative world view. Contingency plan actions are a sequence of logical steps to move toward a lower future output profile from both current operations and future investments. These are evaluated by investment centre and downscaling options may include closure, delay, or mothballing. Three primary factors are used to drive the prioritisation of potential 'Plan B' actions: ® The market price for the product at which each investment centre becomes NPV break-even ® The working cost to revenue ratio for each investment centre as a measure of cost efficiency ® The potential mine output over the following five years. In addition, a number of further factors are used to help identify 'Plan B' options: ® Dependencies between investment centres and any shared capital expenditure ® Strategic factors, including in South Africa potential
The Journal of The Southern African Institute of Mining and Metallurgy VOLUME 112
Valuation logic
Definition of a common approach to valuation modelling of capital investment decisions within the strategic long term planning framework is crucial and provides a basis for consistent valuation modelling practice. Discounted cash flow (DCF) methodology is applied, with emphasis on net present value (NPV) and internal rate of return (IRR). Distinction is made between the capital investment decision from which consideration of historic/sunk cash flows is excluded, as it has no bearing on the future viability of the investment, and assessment of overall business performance where it is necessary to include all past cash flows. Determination of project value (NPV) is based on the philosophy of a differential value obtained from the difference between the base plan at level 1e (the agreed and financed production, cost, and capital profile associated with all investment centres at level 1e and 1 with economic tail management applied) and the base plan plus the project (with its associated combined production, cost, and capital profile plus economic tail management), i.e. mine plus project less mine without project. Valuations are conducted with and without tax shield benefits. Excluding tax shield benefits (stand-alone
Strategic long term planning in mining
assessment) allows ranking of projects, while inclusion of tax shield benefits indicates the likely return from the project once included into the overall business plan portfolio. Inclusion of real option logic into the strategic long term planning process is achieved through: ® Defining world views/scenarios to quantify uncertainty (economic uncertainty) ® Investment centre categorization by confidence of estimate (technical uncertainty) ® Defining minimum DCF investment criteria (e.g. cost of capital and risk-adjusted discount rates) to allow inclusion in the plan ® Having a defined contingency plan that highlights the relative priority of options (maintain, expand, delay, close, dispose) available for consideration ® Cyclically evaluating all options within a mining right area (the mine extraction strategy) with the intention that the best option, the option that meets a strategic intent (the business plan constraints) be selected ® Continuous transparency within the mining right plan portfolio of investment centres. Despite categorizing projects that form the mine extraction strategy and mining right plan on the basis of engineering confidence of estimate (levels 2a, 2b, 2c and 3), it is still necessary to prioritize projects on the basis of valueadd to the overall business plan. The primary measure of value, in the overall strategic long term planning process, is that of net present value (NPV) coupled with internal rate of return (IRR) relative to an agreed minimum rate of return (an investment hurdle rate, either weighted average cost of capital or a risk-adjusted discount rate). This is done on an incremental basis for each project. However, given that the business plan is a combination of a short term budget period plus a long term plan, it is necessary to bring into consideration the effect of short term cash flow. The long term objective of the organization is to maximize value, but this has to be tempered with the need for balance sheet management and near term cash flows.
Project value tracking
The ability to develop a continuous feedback loop of business investment performance relative to original investment criteria (technical, capital, and otherwise) is essential if investment decisionmaking and value maximization is to be continuously improved. Value tracking of capital investment decisions is thus critical for mineral asset value optimization and capital prioritization in large multi-investment organizations. The use of common investment centre models, as developed and applied in the overall short- and long-term planning process, allows integration into existing reporting and governance cycles, and ensures alignment with the overall business planning process. Project value tracking (PVT) analysis takes the form of a waterfall chart, which illustrates the relative importance of various external (environmental variables) and internal (management levers) factors that have caused the NPV to change since the original view baseline model. Figure 5 indicates a typical PVT analysis for a South African platinum producer.
Figure 5—Project value tracking – example waterfall chart for a South African PGM producer
The Journal of The Southern African Institute of Mining and Metallurgy
Strategic long term planning in mining
Enterprise/portfolio value optimization
Business strategy defines the context in which the mineral assets are to be exploited. Strategic objectives relating to market capacity (the ability to absorb output, ultimately leading to market share), operating cost curve positioning, and targeted return on investment (leading to capital availability), coupled with the nature of the mineral assets in the portfolio, shape the potential overall exploitation trajectory. For a multi-mineral asset holding organization, i.e. one with multiple possible sources of metal production, it is highly unlikely that the business strategy will allow unbridled expansion. Typically this constraint manifests as capital availability (based on sustainable growth and necessary return on capital) and the inability of the market to absorb increased production volumes without significant reductions in metal prices. Within this context the business plan portfolio, thus comprises those investment centres which meet a value maximization objective within the strategic constraints. Typically the business plan would thus comprise a collation of investment centres that: ® Generate a production profile that provides metal to market at a rate that matches the most likely macroeconomic world view (scenario) ® Give an acceptable return on investment (meet a prescribed hurdle rate) for a defined balance sheet structure (debt levels) ® Ensure security of mineral right tenure through progressive utilization of mining rights ('use it or lose it'). Within this framework individual projects (expansion or replacement) will compete for funding based on criteria of: ® Return on investment ® Timing of metal to market ® Future operating cost positioning relative to the competitors ® Sequencing or ability to unlock future higher value options. Critical to this overall approach is understanding where the greatest opportunity and flexibility exists, within the value chain, to optimize overall business value. Optimization techniques can be used to enhance the value of the business by maximizing value associated with the flow of metal through the different elements of the value chain. The key challenge is to simultaneously optimize elements of the value chain rather than to optimize component parts in isolation from the remainder of the elements. Enterprise optimization is therefore based on building an integrated geological, mining, processing and market model which allows optimization of variables along the value chain. This allows development of strategic long term plans that are optimized on a value chain basis using mineral asset portfolios coupled with existing and planned infrastructure (mining, process and transportation). Enterprise optimization is thus the process whereby all the elements of the value chain are examined and optimized simultaneously, to allow decisions on:
The Journal of The Southern African Institute of Mining and Metallurgy VOLUME 112
® Mining schedules—where and at what rate to mine (pit and/or underground) ® Cut-off grade and blending—what to discard, stockpile or process ® Processing path and/or plant operating strategy ® Processing capacity requirements ® Logistics configuration ® Capital sizing of all steps in the value chain ® Product specification, mix, and timing. The result is a long term plan with significantly improved cash flow profile, reducing risk and creating value options that can be varied according to the anticipated scenario/world view. Additional opportunities thus exist to model potential future scenarios and identify how to capitalize on potential opportunities and/or mitigate threats. Development of inhouse enterprise or group value optimization tools/expertise, or the contracting out of this work to external entities, is an integral part of value-based management.
P r e s i d e n t i a l A d d r e s s
Execution plans for supporting capability
The ability of a mining company to effectively execute an integrated business plan is dependent on alignment of activities of all participants in the company value chain (mining, process, projects and engineering infrastructure, human resources, marketing, corporate affairs, and finance). One of the key objectives of the strategic long term planning framework is to create alignment of activities across functional groupings and along the company value chain. This is facilitated by the integrated process and dependencies created between the business plan and resourcing of the various support functions. The business execution activities of an integrated minerals and metals company can be broadly sub-divided along the value chain into two groupings—operating and support. The operating activities are mining and process, underpinned by project and engineering execution. These core operating activities are in turn provided support services by the functions of human resources, operational engineering, marketing, finance, and corporate affairs. This is schematically represented in Figure 6. Core optimization of production in response to anticipated market and stakeholder demand occurs, for a multi-mining right entity, within the mining activity. The related operating activities of process and projects are structured and optimized to match the anticipated strategic long term plan (SLTP) production profile. Process capacity is designed and implemented in anticipation of the aligned mining production profile developed in the SLTP. Projects necessary to the SLTP are then optimized, engineered, and executed according to the SLTP timing requirements. Similarly, the support functions of human resources, finance, engineering, marketing, and corporate affairs create capacity and capability to allow effective execution of the SLTP. Process: Alignment of the process value chain activity is primarily capacity-driven. Consideration is given to installed capacity for each of the key process elements such as concentrators, smelters, and refineries. Based on this type of data, opportunities for scale and timing optimization are
Strategic long term planning in mining
Figure 6—Alignment of operating and support activities to the value chain
explored to ensure timing and capital efficiency. Capacity decisions defined during this process then influence parameters applied in the global assumptions where relevant. Decisions on installed capacity associated with the final business plan then influence staffing structures, operating cost, and capital (project and SIB) requirements. Projects: The project portfolio for the company is defined by the project content of the business plan. Each mineral asset has, by virtue of its long term plan, a sequence of projects that require execution, on a timeline, to deliver on the plan. The aggregated project requirements across the company provide the projects portfolio. Necessary capacity, capability, and infrastructure can then be created to execute the project portfolio as per the business plan timelines. Opportunities may exist to smooth capacity requirements through outsourcing, depending on the overall business model applied. Staffing and operating cost is determined by the capacity required to execute the project portfolio, while overall project capital is defined by the project portfolio in the business plan. Engineering and infrastructure: Engineering activities are focused primarily on maintenance of the existing asset base (the routine engineering activities required to maintain the engineering infrastructure) and the establishment of the necessary infrastructure to match SLTP requirements. To allow execution of the SLTP, critical infrastructure in the areas of electricity supply and distribution, water supply and distribution, and transportation systems is necessary. This infrastructure has long lead times and requires engagement with governmental structures and communities for approval and execution.
Electricity supply requirements are estimated from the business plan profiles based on project requirements plus anticipated process power draws. An interactive long term consumption estimation model should be constructed to forecast average power and peak power requirements based on production profiles. An integrated power supply and distribution strategy can then be developed that integrates anticipated utility power supply profiles with anticipated energy savings, self-generation requirements, and any shortfalls to be supplied from independent power producers. Water is fundamental to the business of mining. Development of a SLTP-aligned strategy for the use and discharge of water that caters for various medium- and longterm scenarios/world views is therefore critical. A water strategy plan that considers existing supply, potential storage facilities, and inter-basin water movement should be developed. This plan should indicate anticipated shortfalls/excesses in supply at various stages in the business plan and contingency plans for alternate supplies, e.g. use of municipal grey water. Maintaining a close relationship with Government in the development of the medium- to long-term water strategies to avoid competition for water resources is crucial. The overall water strategy should be fully integrated with provincial and municipal development plans. Key principles are to: ® Manage water consumption to as low a level as possible ® Guarantee water availability ® Limit negative impacts on water sources ® Ensure that mining-related consumption does not adversely impact the availability of water to other users.
The Journal of The Southern African Institute of Mining and Metallurgy
Strategic long term planning in mining
The concept of the true value of water that takes into account the other costs of using water, such as social and ecosystem implications, is central to this approach. Similarly, an integrated transportation infrastructure plan that aligns with the SLTP is necessary. Maintaining a close relationship with Government in the development and integration of the medium- to long-term transportation strategies is crucial, as substantial portions of transport infrastructure can be dual-use and are often in public space. Typically the transportation plan would encompass elements of: ® Ore transportation from mines to concentrator facilities (road/rail) ® Concentrate movement between concentrators and centralized smelter facilities (road/rail/pipeline) ® People movement to and from operations – usually road ® Precious metal transportation. Similar principles to those applied to water are utilized for transportation to minimize negative public impact. Human resources: Outside of basic human resource strategy encompassing employee relations, industrial relations, HR skills and competencies, culture, and values, the core consideration that is driven by the business plan is that of alignment of capacity and capability. Specific attention should be given to: ® Overall staffing levels and required skills by activity by operation ® Longer-term skills development ® Housing requirements ® Training requirements ® Transformation ® Incentive schemes. These aligned requirements then define the necessary operating cost structures and capital requirements to effectively execute the business plan. Corporate affairs: Corporate affairs manifests largely in the realm of sustainable development. In South Africa, the Mineral and Petroleum Resources Development Act (MPRDA) requires all mining operations to have social and labour plans and environmental management programmes in place, and to comply with, and publicly report on, progress towards meeting the requirements of the Mining Charter. The strategic long term plan provides the basis on which social and labour plans and environmental management programmes are structured to ensure alignment with overall business objectives. Marketing: The interaction between the SLTP and marketing comprises two phases; the supply/demand dynamic and forecast market excesses/shortfalls that provide the initial input into the business strategic intent, and the alignment of sales contracts, by metal, based on the business plan that arises from the SLTP. An annual industry and competitor analysis is necessary to fully understand the market dynamic and likely
The Journal of The Southern African Institute of Mining and Metallurgy VOLUME 112
supply/demand/pricing scenarios. These inputs are integral to the value-based management approach and definition of metal pricing in the world view or scenario development that defines the global assumptions. Many minerals and metals products are sold primarily through contractual agreements with the primary consumers. The structure of these contracts (volume, price, delivery, form) is influenced by the forecast availability of metal arising from the business plan as developed through the SLTP. Finance: Outside of the routine management accounting and corporate finance functions, finance activities are focused fundamentally on cash flow and balance sheet management for the SLTP. Mining projects are invariably long lead time, high capital requirement entities requiring cash flow management over extended periods. The ability to generate pro forma annual financial statements from the economic models of the business plan arising from the SLTP, over a range of time periods for a range of scenarios, facilitates cash flow, and balance sheet management. The ability of a mining company to effectively execute an integrated business plan is dependent on alignment of activities of all participants in the company value chain. One of the key objectives of the strategic long term planning framework is to create alignment of activities across functional groupings and along the company value chain. The long term plan thus provides the basis for resource planning of all support capabilities (process, engineering, projects, infrastructure, human resources, finance, marketing, and corporate affairs). Supporting capability plans are aligned with the business plan requirements and resourced to ensure timely delivery of capacity and capability as necessary.
P r e s i d e n t i a l A d d r e s s
Strategic long term planning of mineral resource extraction is an approach that acknowledges the nature of the depleting mineral asset base, the importance of a defined but flexible project pipeline, variability in market conditions and the requirements of the operating legislative environment. It is a logic construct that translates into a defined outcome—the business plan, through a series of repeated actions, using a standardized set of tools and techniques. It creates discipline and structure to allow shared understanding of the opportunities and challenges facing a mining and metals company. The framework provides the basis for effective management of large, diverse, complex, mineral asset portfolios while creating shared understanding and a common language. There are no complex equations or processes but a coherent, logical process that integrates various elements, using tools and techniques that are known, or intuitively understood, by most participants—scenarios, discounted cash flow analysis, value-based management, project value tracking logic, ranking and prioritization, option identification, and analysis to create order and logic.
Strategic long term planning in mining
This approach
® Enables integration between corporate and operations, both mines and process operations, and between MRM/finance/business development/projects ® Creates a planning process that is routine but sufficiently adaptable, and which allows for planning flexibility ® Facilitates communication between stakeholders (corporate, operations, services, projects) ® Defines the process, its components, and interdependencies ® Produces a defined product that is aligned to expectations and allows effective decision making ® Defines accountability, roles, and responsibilities ® Ensures delivery of a value-optimized, strategically aligned, production profile from the business mineral asset portfolio. Strategic long term planning is a logic construct that enables delivery of an optimized, strategically aligned business plan from a mineral asset portfolio using a set of tools and techniques with a common language, standards, systems, and processes to align decisions and actions on a cyclical basis.
PEARSON-TAYLOR, J. and SMITH, G.L. 2006. The concept of project value tracking and its application in strategic mine planning at Anglo Platinum. Proceedings of the Second International Seminar on Strategic versus Tactical Approaches in Mining, Australia Centre for Geomechanics, Perth, Australia, 8–10 March 2006. Section 8, pp. 1–13. PORTER, M.E. 1980. Competitive Strategy: Techniques for Analysing Industries and Competitors. Free Press, New York. PORTER, M.E. 1985. Competitive Advantage—Creating and Sustaining Superior Performance. Free Press, New York. SMITH, G.L. 2011. A conceptual framework for the strategic long term planning of platinum mining operations in the South African context. PhD thesis, University of the Witwatersrand, Johannesburg, South Africa. SMITH, G.L., ANDERSEN D.C., and PEARSON-TAYLOR, J. 2009. Strategic long-term planning at Anglo Platinum. Journal of The Southern African Institute of Mining and Metallurgy, vol. 109, no. 3, pp. 191–203. SMITH, G.L., ANDERSEN D.C., PEARSON-TAYLOR, J., and MARSH A.M. 2007. Project valuation, capital investment and strategic alignment—tools and techniques at Anglo Platinum. Journal of The Southern African Institute of Mining and Metallurgy, vol. 107, no. 1, pp. 67–74. SMITH, G.L., PEARSON-TAYLOR, J., and ANDERSEN, D.C. 2006. The evolution of strategic long term planning at Anglo Platinum. Proceedings of the Second International Platinum Conference 'Platinum Surges Ahead, Sun City, South Africa, 8–12 October 2006' Symposium Series S45. The Southern African Institute for Mining and Metallurgy, Johannesburg, pp. 301–305. SMITH, G.L., SURUJHLAL, S.N., and MANYUCHI, K.T. 2008, Strategic mine planning—communicating uncertainty with scenarios. Proceedings of the Third International Platinum Conference 'Platinum in Transformation', Sun City, South Africa, 6-9 October 2008. Symposium Series S45. The Southern African Institute of Mining and Metallurgy, Johannesburg, pp. 335–342.
BRADFIELD, R., WRIGHT, G., BURT, G., CAIRNS, G., and VAN DER HEIJDEN, K. 2005. The origins and evolution of scenario techniques in long range business planning, Futures, vol. 37, pp.795–812. CAMUS, J.P. 2002. Management of Mineral Resources—Creating Value in the Mining Business. Society for Mining, Metallurgy and Exploration Inc., Littleton, Colorado. LANE, K.F. 1988. The Economic Definition of Ore: Cut-off Grades in Theory and Practice. Mining Journal Books Ltd, London.
HEIJDEN, K., BRADFIELD, R., BURT, G., CAIRNS, G., and WRIGHT G. 2002. The Sixth Sense: Accelerating Organisational Learning with Scenarios. Wiley, Chichester, UK.
WYK, L. and SMITH, GL. 2008. The concept of value based management and its application in developing value maximising strategies at Anglo Platinum. Proceedings of the Third International Platinum Conference 'Platinum in Transformation', Sun City, South Africa, 6-9 October 2008. Symposium Series S45. The Southern African Institute for Mining and N Metallurgy, Johannesburg, pp. 315–317.
The Journal of The Southern African Institute of Mining and Metallurgy


text:
This is fun. Yall are predictable
Printable View
This is fun. Yall are predictable
do you have a cousin named gruvi?
Cant say that i do. Ok so on a serious note now that ive broken the ice w a little bit of crazy. Who wants to get up n shred. And are yall in tops wetsuits or what
hey stretch it's called the law of attraction. what you focus on expands. if you put out negative vibes, you can expect negative vibes in return. if you put out positive vibes, you get positive vibes in return. if you put out crazy vibes, then i'll get out of your way man. you can have the beach to yourself!
Just tryin to get sum people fired up man. It entertaining when its flat. Im not tryin to fight. I just wanna chill man. But everytime i get on here peacefully people come at me from everyother direction other than talkn bout surfin
I was out from bout 6 to 8 30. But im 6 8 n 200 lbs. small waves dont really work for me
But i went to las dunas
O yea. Ever since i broke my heel n two spots w a fractured ankle. Ill paddle out for anything w white water. I just open up at head high plus

subset: commoncrawl


text:
I grew up in the same town, and attended the same school, as the economist Adam Smith. Granted, we did so some 250 years apart. Adam Smith coined the metaphor, "The Invisible Hand", in his book "The Wealth of Nations" .. it's a metaphor about freedom of choice for consumers that I was immediately reminded of today when I saw Adobe Flash Player 10.1 sitting at the top of the Android Application store.
The theory of the Invisible Hand states that if each consumer is allowed to choose freely what to buy and each producer is allowed to choose freely what to sell and how to produce it, the market will settle on a product distribution and prices that are beneficial to all the individual members of a community, and hence to the community as a whole.
Investors invest in those industries most urgently needed to maximize returns, and withdraw capital from those less efficient in creating value. Students prepare for the most needed (and renunerative) careers. All these effects take place dynamically and automatically.
And consumers of mobile devices, when customizing their devices to maximize the experience they can enjoy and the services they can consume, are being guided by the Invisible Hand towards Adobe Flash Player 10.1
It's great not only to see this initial adoption of Flash Player on Android, but to see it as a self-organization driven by the consumers of the experiences it offers.
Experience still matters.


text:
Results 1 to 8 of 8
04-09-2013, 11:59 PM #1Member
- Join Date
- Nov 2009
- Posts
- 281
- Rep Points
- 194.8
- Mentioned
- 5 Post(s)
- Rep Power
- 2
SoCal Track Day! Chuckwally Raceway 05/04-05/05
SoCal Track Day! Chuckwally Raceway 05/04-05/05
ExtremeSpeedTrackEvents will be at Chuckwally Raceway 05/04-05/05
Driver's meeting is at 8:15, don't be late!
Register here:
May 4th is my BIRTHDAY!! so come help me celebrate . I am going to most likely go up the night before (friday the 3rd) and stay close by-ish. Let me know if you do too
Price is only $140 with Free timing
I don't know of a discount code yet... but if I hear of anything, I'll make sure to post it up
There's also free basic beginner's instruction (for everyone, not just BMW drivers)
I'll do what I can to help answer questions, but PLEASE email them if you have a specific question. I'm not able to answer specific questions.
email@example.com or go on their website.
I have never personally been to Chuckwally Raceway, so I am very excited.
More info on CVR:
This event is in conjuction with Redline Time Attack. If you want to run Redline, please register there:
This is Round 3 of their competition
I don't have any pictures from here myself since I haven't been there yet, so post them up if you have them!
Here are some pictures from previous events (At other tracks):
The fastest E92 M3 in SoCal that I know of, R's Tuning's M3 driven by Rikcy Kwan wwjd15:
Bump, great pricing, enjoy guys.1 SPOT LEFT - BoostAddict Fantasy Football League
04-10-2013, 12:10 AM #3Member
- Join Date
- Apr 2011
- Location
- Los Angeles
- Posts
- 3,230
- Rep Points
- 502.1
- Mentioned
- 57 Post(s)
- Rep Power
- 6
I've been itching to get the black series out to the track and I've heard great things about this track. I think I'll get a room at LA Quinta and come check it out for the weekend. Dinner at Castelli's....mmmmmmmmmmmmm.
Never even heard of this raceway.1 SPOT LEFT - BoostAddict Fantasy Football League
I heard this is one of the funner tracks like buttonwillow. I need to get my car fixed!!! WTFBurger Motorsports
Home of the Worlds fastest N20s, N54s, N55s, S55s, N63s, and S63s!
It is the sole responsibility of the purchaser and installer of any BMS part to employ the correct installation techniques required to ensure the proper operation of BMS parts, and BMS disclaims any and all liability for any part failure due to improper installation or use. It is the sole responsibility of the customer to verify that the use of their vehicle and items purchased comply with federal, state and local regulations. BMS claims no legal federal, state or local certification concerning pollution controlled motor vehicles or mandated emissions requirements. BMS products labeled for use only in competition racing vehicles may only be used on competition racing vehicles operated exclusively on a closed course in conjunction with a sanctioned racing event, in accordance with all federal and state laws, and may never be operated on public roads/highways. Please click here for more information on legal requirements related to use of BMS parts.
04-12-2013, 03:44 AM #6Member
- Join Date
- Nov 2009
- Posts
- 281
- Rep Points
- 194.8
- Mentioned
- 5 Post(s)
- Rep Power
- 2
For those that are interested in the Competition, here's the info direct from their site (i just copied and pasted it):
Competition Dates
Apr 20th Big Willow Springs
May 4th Chuckwalla
May 26th Streets of Willow
June 15th Big Willow Springs
Aug 24th Streets of Willow - Night event -4pm till Midnight
Sept 28th Chuckwalla
Nov 23rd AAA Speedway
Dec 7th Buttonwillow Raceway
Dec 21st WSIR
0.50 pts- OEM Springs w/aftermarket Shocks
1.00 pts- Aftermarket springs w/OEM Shocks
1.25 pts- BMW suspension Upgrade (M Suspension pkg on Non-M Suspension)
2.25 pts- Single adjustable coilovers suspension
3.25 pts- Double adjustable coilovers suspension
5.00 pts- Triple adjustable coilovers suspension
1.75 pts- Each adjustability (after triple only)
1.50 pts – Aftermarket front sway bar
1.00 pts – Aftermarket rear sway bar
5.00 pts – Aftermarket active suspension (OEM active suspension acceptable)
4.00 pts – Relocating suspension pick up points
Engine & Power
0.25 pts –High-flow cat
0.50 pts - Catalytic Converter removal
1.00 pts –Headers
1.75 pts – Intercooler
2.00 pts – Modified cooling components location (radiator, oil cooler, diff cooler, etc)
1.50 pts –Intake manifold (Including swaps)
1.50pts- Cat-back exhaust
2.00 pts- Turbo downpipe
1.00 pts- Aftermarket ECU reflash/chip (N/A motors)
3.00 pts – Aftermarket ECU reflash/chip (turbo motors)
5.00 pts- Aftermarket force induction (turbo and supercharger kits)
3.00 pts – Modifying existing turbos (including wastegate)
3.50 pts- Standalone units
1.50 pts- Aftermarket upgraded camshaft
2.50 pts – Internal engine modifications (including rods, camshaft, pistons)
4.00 pts- Bore and stroke modifications
3.50 pts- Nitrous Oxide System
0.00 pts – Engine swaps will be automatically bumped into engine category
Wheels, Tires, & Brakes
0.00 pts – Wheels
1.75 pts – Brake ducts
0.75 pts – Aftermarket brakes pads
0.75 pts – Upgraded BMW sliders & calipers
1.50 pts – Front big brake kits
1.75 pts – Front and rear big brake kits
0.00 pts – Street tire UQTG treadwear rating at 140+
-1.00 pts – Street tire UQTG treadwear rating at 220+
4.00 pts – Street tire UQTG treadwear ratings at 100+
6.00 pts – Street tire UQTG treadwear ratings at 80+
8.50 pts – Street tire UQTG treadwear ratings at 40+
1.50 pts – 10mm above class max size
3.00 pts – 20mm above class max size
0.50 pts – Modified front bumper (including aftermarket & CSL splitter)
0.50 pts – Modified rear bumper (including aftermarket )
0.50 pts - Modified & aftermarket trunk
0.50 pts – Modified & aftermarket hood
2.00 pts – Front splitters (under 3inches)
3.50 pts – Front splitters (over 3inches)
1.00 pts – Canards and dive points
1.50 pts – Modified & aftermarket rear diffuser
2.50 pts – Flat underbody w/diffuser
0.50 pts – Aftermarket or upgraded OEM trunk spoiler/lip
3.00 pts – Aftermarket wing (up to 60inches wide)
3.75 pts – Aftermarket wing (over 60inches wide)
5.00 pts – Multi elements &/or active wings
0.50 pts – Gurney Flap
2.50 pts – Wide body/ over fenders, body kits
1.50 pts – Differential changes (Ratio, LSD, Lockup)
1.00 pts - Aftermarket steering wheel
1.50 pts – Aftermarket flywheel & clutch
1.00 pts – Weight reduction ( per each 100 pounds)
04-28-2013, 08:26 PM #7Member
- Join Date
- Nov 2009
- Posts
- 281
- Rep Points
- 194.8
- Mentioned
- 5 Post(s)
- Rep Power
- 2
I just realized I never posted the discount code I got in the email!!!
DISCOUNT CODE IS ( chuck2 ) but it says it expires on the 30th.. SORRY!!
Email them, see if they will still accept it after the 30th
05-07-2013, 02:01 AM #8Member
- Join Date
- Nov 2009
- Posts
- 281
- Rep Points
- 194.8
- Mentioned
- 5 Post(s)
- Rep Power
- 2
This was my first time at CVR, and I have to say, I LOVE ITT
Once I get more comfortable, I'm sure I'll like it more than BRP
But for now, I'm a bit cautious to go faster


text:
A week after the First Lady and the nation's agriculture secretary unveiled new federal standards for school meals, local education officials are still figuring out exactly what the new nutrition rules will mean for Mountain View schools.
While it is still unclear what it will take to comply with the new rules in terms of money and training, superintendents at both the Mountain View Whisman and Mountain View-Los Altos school districts agreed that it was good to be located in a health conscious part of a health conscious state.
In many ways, the Mountain View Whisman School District is "ahead of the curve," said Superintendent Craig Goldman. "We view federal guidelines as a floor, not a ceiling," Goldman said. "We have ongoing discussions about how to improve the quality, nutrition and appeal of the food we serve to children."
A significant component of the Michelle Obama-endorsed Healthy, Hunger-Free Kids Act, the new U.S. Department of Agriculture guidelines call for more fruits, vegetables and whole grains, a reduction of processed, salty and fatty meals, and limiting the number of calories served to children based upon age.
"California is way ahead of the federal curve," said Joe White, superintendent of business services at the Mountain View-Los Altos Union High School District. According to White, some of the new requirements coming down the pike have already been implemented in his district. For example, he said, MVLA already serves fruit on a daily basis, as well as fat free and reduced fat milk.
Schools will get an increase in federal funding for implementing the rules of the act -- 6 cents for every meal served.
The new regulations mark the first significant raising of public school food standards in more than 15 years.
In a press release issued by the USDA, the First Lady said the legislation was meant to ensure that kids eat as well at school as they do at home.
"As parents, we try to prepare decent meals, limit how much junk food our kids eat, and ensure they have a reasonably balanced diet," Obama said. "When we send our kids to school, we expect that they won't be eating the kind of fatty, salty, sugary foods that we try to keep them from eating at home."
Carol Chase, nutrition education administrator for the California Department of Education, said the new rules will begin going into effect on July 1. According to her, the USDA wants schools to work on getting lunches compliant first; districts won't be responsible for making sure breakfast programs are in line with the new standards until July 1, 2013.
It's a good thing that California schools have more time to revamp their breakfast programs, according to Chase. Breakfast is a discretionary program and since Congress has yet to approve any increase in breakfast reimbursements to help pay for the changes, some feared that schools would simply eliminate their morning offerings, leaving many low-income California children to go hungry.
While Mountain View may be ahead of the national curve, Chase said the new rules will surely prove challenging to many schools California. "We are concerned about the majority of our districts," she said.
With the emphasis on serving more fresh foods, new preparation and food handling protocols will need to be put in place. "When you're handling fresh fruits and vegetables, it takes additional steps to make sure the food is provided in a safe manner," she said.
Despite her concerns, Chase said that the new rules represent a "net good."
"Our kids spend the majority of their days in school," she observed, echoing Obama. "We want to make sure the meals they are being provided are meeting nutritional requirements."


text:
German Interior Minister Thomas de Maiziere called the provinces that Islam lessons must once in a while put in the curriculum on a regular basis.
During his speech in Nuremberg, Interior Minister Thomas de Maiziere explained that this or the next year at the latest proper aggrements must be signed on this subject.
Maiziere stated that the trials or pilot projects have not proved to be sufficient so far as some implementations based on solid regulations are needed. He also added that each province must seek proper and practical solutions.
In Germany where each province specifies the curriculum of the schools Islam lessons (Islamkunde) are being instructed under the scope of model project in some provinces.


text:
Medical students keen to show support for those they treat signed up to have their heads shaved for Cancer Research UK.
David Palethorpe, 23, Edward Palmer, 22, Sebastian Locke, 21, Joseph Bridgeman, 22, and Michael Lee, 21, who are all studying at St George's University, Tooting, went under the clippers on Saturday on the hospital grounds.
Mr Palethorpe, said: "We have seen how cancer can devastate patients' and their families' lives.
"Many patients don't get to choose if they lose their hair or not, so we thought we would do this to show our solidarity and support and to raise awareness and money for cancer research."
So far, the five have already raised £1,650.00, topping their £15,00 target. To support them visit justgiving.com/goingglabrous


text:
When I think back to when I was DD's age and grade, we had covered early explorers, the European settlement of Australia, geography and geology, percentages and long division, and so on - and i would not say my primary school education was of the highest quality. But DD seems very unaware of countries in the world, Australian references (ie explorers, Australian history etc)... things that i knew about at her age.
I don't know if I should be concerned. I ask her what she learns and she says it is mostly English and Maths and her portfolio of work supports this. Occasionally her class delves into history but I am not sure how much in-depth study this is or how accurate. One thing she learnt this year was the Ned Kelly stole from the rich to give to the poor, which was news to me and I went through some resources about Ned Kelly to discuss how this really wasn't an accurate portrayal of him. She spoke to her teacher about it but she said her teacher was not interested. The class actually presented this information to the school - where teachers who watched it were heard to say they found that information incorrect.
Certainly a lot of what DD knows is what she has gathered from reading, independent to the school learning. She is very inquisitive and asks a lot of questions, which I do my best to answer or we look it up on the Internet or in books.
Am I expecting too much for her class to learn about the Humanities, Science, History etc in a bit more in depth (that is appropriate to the class age and VELS)? I am concerned that she is not getting a broad educational experience and that she will be disadvantaged in high school if she does not know a lot about, for example, Australian history, compared to students from other primary schools that cover more than just Maths and English. Or is this the way it is?
Edited by katpaws, 22 November 2012 - 08:33 AM.


text:
LOS ANGELES — As investigators scour the Los Angeles International Airport terminal for evidence into what could have been a massive kill zone Friday, the nation's third-busiest airport was heading back toward normal operations Saturday.
Terminal 3 — where lone gunman Paul Ciancia allegedly shot and killed Transportation Security Administration officer Gerardo Hernandez and wounded two others — remained closed except for ticket purchases as FBI and Los Angeles police forensics teams continued to gather evidence.
But most of LAX was functioning early Saturday after 1,550 flights, including 724 arrivals and 826 departures, were either canceled or diverted by Friday's shooting. Departing passengers were tweeting Saturday that there were few problems accessing the airport. Still, LAX officials urged passengers to check with airlines for potential departure and arrival delays. Those who left luggage at Terminal 3 during Friday's mayhem weren't able to recover their belongings yet.
Ciancia, 23, was shot four times by airport police and remains hospitalized. Aside from Hernandez and the two wounded TSA officers, a person suffered a broken ankle.
The carnage could have been far worse, investigators said. Police said the shooter, armed with a semiautomatic rifle, brought 150 rounds of ammunition to the airport. Investigators recovered a rambling message from the bag the shooter allegedly was carrying, which detailed an intent to "kill" TSA officers, said two federal law enforcement officials familiar with the message's contents. The officials, who are not authorized to comment publicly, said it was written in a way that suggested the author expected to lose his life.
Terrified witnesses said the suspect also asked them whether they worked for the TSA.
Leon Saryan told ABC News that the gunman approached him and pointed a long-barreled gun at him.
"I was cowering in a corner, he looked at me and he said, 'TSA?' I shook my head no, and he kept on going," Leon Saryan said. "I just prayed to God. That's all I did. I just prayed," Saryan said.
One of the officials described the incident as a suicide mission.
In recent days, one of the officials said, the New Jersey family of the alleged shooter had become worried about his emotional state and called local police, who relayed their concerns to Los Angeles authorities. The official said Los Angeles police reportedly were in contact with the alleged shooter's roommates, who indicated that he appeared to be OK.
According to a report by the Associated Press, a law enforcement source said the gunman's note referred to how he believed his constitutional rights were being violated by TSA searches and that he was a "pissed-off patriot" upset at former Homeland Security Secretary Janet Napolitano.
The suspect entered Terminal 3, pulled out an assault rifle from a bag, then began to open fire at a screening checkpoint, according to LAX Police Chief Patrick Gannon. He then proceeded to a screening area, where he continued shooting, then went past the screeners back into the airport itself, Gannon said. He continued to move along a terminal corridor until apprehended at a Burger King in the food court, where airport police officers shot him four times, including in the mouth and leg. There was no word on his condition.
The dead TSA officer, Gerardo Hernandez, 39, was a behavior-detection officer tasked with spotting suspicious activity and identifying potential terrorists, TSA Administrator John Pistole said.
Hernandez is the first TSA officer killed in the line of duty in the 12-year history of the agency, created after 9/11. Another victim was listed in critical condition, and at least two of the injured were TSA employees.
Friends and neighbors remembered Hernandez as a doting father of two and a good neighbor.
Before arriving in the L.A. area, Ciancia lived with family in a quiet, wooded neighborhood in Pennsville, N.J., police said.
Joshua Pagan, 17, has lived across the street from Ciancia's residence in Pennsville for 10 years. He said Ciancia has a brother close in age to him.
"I've seen (Paul) a few times, but I did not know him personally," Pagan said. "From what I've seen and heard, he was just a normal person — just an everyday guy. Right now, I am still trying to process this. Did this really happen? Did they get the wrong guy? Because if they told me they got the wrong guy, it would make a lot more sense to me."
The shooting left much of the nation's third-busiest airport shut and the surrounding area in gridlock. The Federal Aviation Administration canceled or diverted 746 flights. Airport roadways were closed. Travelers were stuck on incoming and departing planes on the tarmac, on buses or sidewalks.
Monitored in real time by scores of terrified bystanders on social media websites such as Twitter and Instagram, the incident was the latest in a recent spate of mass shootings. Some passengers built walls of luggage to protect themselves from flying bullets. Others fled through emergency doors and onto the tarmac, including some who were briefly handcuffed and questioned by swarming groups of police before they were released.
"They probably thought I was the shooter. They handcuffed me and told me not to move," said Nick Pugh, who was attempting to fly to New York to watch Sunday's New York Marathon.
Aleksander Fiksdal, 22, was in a security checkpoint line for a flight to his native Norway when he heard shots ring out. "I turned and saw a guy with a rifle and I threw myself on the ground," Fiksdal said. Other passengers in the security line did the same, while some broke and ran.
"I really thought I saw death," said Anne Rainer, who witnessed the gunfire with her 26-year-old son, Ben. The pair were about to leave for New York so her son could see a specialist for a rare genetic condition he has.
They took refuge behind a ticket counter where she said people prayed, cried and held hands. She watched as one person jumped from a second-floor balcony to get away from the gunman.
"Adrenaline went through my head, my body went numb, and I said, 'If I have to go, it's OK because I'm not going to feel it, but I have to save him,'" Rainer said.
Friends Mara Allen, 42, of Yuba City, Calif., and Vicki Powell of Sacramento had just arrived on a flight so they could go on a cruise to celebrate Powell's 50th birthday. Gathered with others around a baggage carousel, they were startled when a police officer started yelling for people to flee. Wheelchair-bound Powell wasn't sure how she was going to get out.
"I was waving. Come get me. Help!" Powell caught the attention of an attendant who wheeled her outside. The pair had to leave their luggage behind, and it was unclear whether they'd be able to retrieve it before their ship leaves L.A. for Mexico. "This is something I see on TV. I don't want to be in it," Powell said.
Among the people evacuated from the airport, more than a dozen were treated for minor injuries such as twisted ankles, exhaustion or stress.
The Radisson Hotel close to LAX was turned into a makeshift refugee center crammed with passengers. One large group gathered around a television set in the bar, where a clot of them were glued to coverage of the unfolding drama.
The last shooting at the airport occurred in July 2002, when an Egyptian immigrant shot and killed two bystanders in a rampage at the El Al ticket counter.
Woodyard and Welch reported from Los Angeles. Contributing: Bart Jansen in Washington, D.C.; Bill McMichael, The Wilmington News Journal; and the Associated Press.


text:
Coaches Information 2017
League Champions
Homepage | Games | Standings | Leaders | Rosters
Games | Standings | Leaders | Rosters
Edmonton Inline is a volunteer organization formed for and dedicated to providing an opportunity for young players and adults to play inline hockey.
8306-164 Street, Edmonton, Alberta, T5R 2P8
edm.inline at gmail dot com
You don't need to run home just to check the schedule, or get your stats and scores. Check out the new RAMP Mobile App for Apple and Android! COMING SOON!
Do you want to reach thousands of users across hundreds of Minor Sports Association websites? Advertising with RAMP has never been easier! Get in touch with us now to discuss your needs.
RAMP InterActive - Terms of Use - Privacy Policy
Admin Login


text:
The Western Stallion's and Central Shield do battle in the T20 Finals of the CIBC National Cricket League. The match starts at 330pm live on Sportsnet.ca and RogersTV
Happy Canada Day! What better way to celebrate our nation with Canada's first national sport taking centre stage. The CIBC National Cricket League final is set to go at 3p eastern on Rogers TV in the GTA and Sportsnet.ca nationwide.
Day 1 of the T20 competition showcased the top T20 cricketers in Canada in 4 hotly contested matches. Day 2 including the finals is expected to provide more of the same. Monday morning kicks off at 11am eastern wtih the Stallion's and the Fire going head to head, both teams still in it with a chance to be in the afternoon grand finale.
Cricket Canada is pleased to announce Rogers TV as its Official Broadcast Partner for a summer of "Wicket Cricket Action".
The commitment encompassess over 18 LIVE broadcast productions in stunning High Definition that will bring viewers the very best of Canadian cricket action into their homes.
Matches include the CIBC National Cricket League T20 Championship, Canadians vs CIBC NCL All-Stars, the Teacher's Whiskey Auty Cup and international 50 over and T20 fixtures with UAE.
Customers of Rogers Cable/Digital in Toronto have free access to RTV on Cable 10/63 while viewers across Ontario can watch on Rogers TV Sports+ on 368 SD or 369 HD.
For the national audience, Cricket Canada broadcast partner Sportsnet will carry all 18 matches LIVE on Sportsnet.ca as a FREE web stream and select replays of matches on its speciality subscriber channel Sportsnet WORLD.
There has never been a better time to be a fan of Canadian cricket!
The full broadcast schedule can be found at rogerstv.com/cricket.


text:
Gwyneth Paltrow, Kate Middleton + More: People's Best Dressed of 2012 List!
People's Best Dressed of 2012 list is out! Gwyneth Paltrow took the top spot—but should she have? More here!
-Lucia Peters
Kate Middleton may have been Vanity Fair's top choice for the year's best dressed, but it looks like she's got a little competition now: Gwyneth Paltrow managed to snag the top spot from the Duchess of Cambridge in People's Best-Dressed of 2012 list. Is the GOOP mightier than the sword? Maybe!
Nominated by the People editors, Gwynnie, dubbed "The World's Best Dressed Woman," is more than just an award-winning actress, a singer, and a cook; she's "a fashion plate first and foremost." To be honest, we're still trying to figure out that wacky Tom Ford cape thing she wore to the Oscars this year, but… maybe that's just us.
But don't fret, Royal fans; Kate still managed to land spot number 2, right behind Gwynnie. Earning the title "The Classic Beauty," Kate was nominated by Mad Men costume designer (and Betty friend) Janie Bryant.
Read Kate Middleton Tops Vanity Fair's International Best Dressed List for 2012
Other winners include Emma Stone ("The Red Carpet Ruler"):
Up next: The star with the best street style and more!


text:
MichelleYoder says: "Instead of taking turns we decide to shoot each other, shooting each other:)"
Only voters receive the private messages a model sends to her fans.
Voting is how you show love and appreciation to your favorite models & photographers.
Zivity pays them a cash royalty for each vote they receive.
Buy votes to support this artist on Zivity. Votes are $1 each, and when you vote on a set you like, 55% goes to the model and 30% to the photographer. You can vote in the next step after registering and purchasing votes.


text:
You won't be able to dismiss this by usual means (escape or click button), but you can close it programatically based on user choices or actions.
"These cards are great, both in design and picture quality. They have a clean, cheerful, modern look. My only gripe was there is only a small place on the return address space so most standard address labels don't fit. I ordered a custom small address stamp instead."
"These announcements exceeded my expectations! Simply beautiful. My husband and I eloped in the Caribbean, so we wanted a fun announcement that captured the feeling of our ceremony. The size was perfect - they resemble a traditional postcard."
"I was looking for a card that was elegant but still colorful and shabby chic looking. I loved the unmatched font detail and how the picture looked next to it. I was able to customize the font and colors of my message on the back giving it the perfect finishing touches!! I LOVED my final product and can't thank you enough!"
"These postcards are smaller than a 4x6 photo but really are the perfect size. Our photo looks great, the pastels are festive, and the suggested wording was helpful. Will consider other postcards for future events."
"The first time I saw this style, I fell in love with it as I did when I first saw my wedding dress. It was the same feelings, silly to some, but to me, its what catches my eye and this certainly did."


text:
Detroit, Mich. - The Detroit Red Wings will host a canned food drive to assist in the fight against hunger with Gleaners Community Food Bank of Southeastern Michigan.
The canned food drive will take place during the team's home game on Thursday, April 11, when the Wings take on the San Jose Sharks at 7:30 p.m.
All donations will benefit Gleaners Community Food Bank, which collects and distributes 45 million pounds of food annually to more than 550 local food pantries, soup kitchens and shelters.
With one in five metro Detroiters at risk of hunger, every pound of food collected and every dollar raised will provide relief to people struggling through tough times.
Volunteers from Gleaners will be at each entrance of Joe Louis Arena when the doors open on Thursday at 6:00 p.m. to collect donations.
Fans who donate nonperishable food items or make monetary donations will be entered to win an autographed Jimmy Howard puck and 8x10 photo.
Copyright 2013 by ClickOnDetroit.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


text:
Next time you buy a concert ticket, the checkout process might be a little less annoying now that Ticketmaster has done away with pesky CAPTCHAs.
To keep scalpers out, Ticketmaster uses a solution from Solve Media that asks users to enter plain English words and phrases, rather than CAPTCHA's barely-decipherable jumble of letters and numbers. For instance, users might be asked to solve an obvious multiple choice question, like "Which one is a country?" with potential answers including "monster truck," "puppy" and "Spain."
According to the Associated Press, the new system has halved the average time it takes customers to solve a puzzle, from 14 seconds down to seven seconds. Kip Levin, Ticketmaster's executive vice president of eCommerce, said the company has seen anecdotal evidence of an "uptick in fan satisfaction," and is happy from a security standpoint as well.
Solve Media isn't a new company – I wrote about it in 2010 – but Ticketmaster is arguably one of its most high-profile clients. Ticketmaster needs a bot-deterrent to fight scalpers, who look to purchase tickets in bulk using automated systems, and the company's old CAPTCHA system wasn't foolproof. In 2010, a group of scalpers pleaded guilty to circumventing the systems of Ticketmaster and other ticket vendors using a network of CAPTCHA-solving computers. As the AP notes, Solve Media looks for clues to determine whether a ticket-buyer is actually a bot, and tailors the difficulty of its questions accordingly.
The only downside is that Solve Media's system doubles as advertising, so some puzzles may ask you to type in the slogan or product name as it appears on screen. I'm not opposed to advertising – it pays my bills, after all – but there's something just a little icky about forcing users to repeat a company's marketing message in the name of security. Traditional CAPTCHAs, at least, serve a more noble goal: by deciphering those messy words and letters, you're helping to digitize old print books.
Ideally, we might be able to move beyond these systems of puzzles and passphrases entirely. On mobile phones, for instance, Ticketmaster now uses a push notification system that eliminates the need for CAPTCHA, because your hardware essentially proves that you're a real person. Incidentally, efforts are underway to kill the password in similar fashion.
This story, "The loathed CAPTCHA verification system gets the boot by Ticketmaster: Thank you!" was originally published by TechHive.