HGO 1.75% 5.8¢ hillgrove resources limited

Every manufacturing business has to weigh up the value of lost...

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    Every manufacturing business has to weigh up the value of lost production against the extra cost of designing and maintaining plant to eliminate breakdowns. The lower the value of your product, the less you will invest in eliminating breakdowns and the more breakdowns you will tolerate.

    For example a low value product plant may tolerate a few days per month of lost production. Completely eliminating the risk of breakdowns is not economic.

    One 7-10 day outage in the crusher in 5 years of operating the crusher looks pretty reasonable.

    What is a sign of good management is they have been able to react quickly to bring forward other maintenance and reduce the downtime in July by 3 days. So a net loss of between 4 and 7 days of production.
 
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