A robust feasibility study also provides confidence to make strategic decisions such as engaging with external partners, phasing investment, altering scheduling, postponing or even cancelling a project. A well planned and executed study will help focus effort and address issues around uncertainty for investors by showing how risk can be managed and how value can be increased.
McKinsey & Company reported recently that more than 4 out of 5 mining projects come in late and over budget by an average of 43 percent.
Feasibility studies typically have many interdependent moving parts. They are often led by technical teams with a focus on engineering an outcome or solution. Projects often fail or struggle to secure funding.