Overnight, $RUL announced the following product launch at MINExpro 2024 in Nevada. This is a pretty important product for mine operations.

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RPMGlobal Launches Fleet Optimisation Solution

26 September 2024

RPMGlobal (RPM), a global leader in mining software technology, is pleased to announce its new fleet optimisation solution at MINExpo 2024 in Las Vegas Nevada. FleetOptimiser continues RPM’s journey towards cloud-based solutions, offering a product designed for customers to calculate and optimise their trucking requirements for a shift.

The solution combines a 3D, visual user interface with RPM’s universal fleet calculation wrapped up in a secure, web accessible, cloud-based solution.

Up until now desktop models and spreadsheets have been used to calculate the viability of the mine plan. This creates downstream issues with difficulty maintaining data, accuracy issues, and version control. Several products have provided truck limited scheduling over the years which works well in a long-term horizon, however applying the same techniques to the more detailed short-term space has always fallen short.

FleetOptimiser uses the RPM travel time calculation engine, the industry standard, that is embedded across many of their mining software solutions. It calculates productivity for trucks across a haulage network while matching truck productivity to targeted loader productivity.

According to Michael Baldwin, RPMGlobal’s Chief Commercial Officer, engineers have been dreaming about this product for years. “There has always been conflict between planners and operations with respect to what an achievable plan actually is. FleetOptimiser lets the planner optimise realistic targets for the upcoming shifts while operations can use FleetOptimiser to reconfigure fleet throughout the shift as parameters change, all through a web-based 3D intuitive user experience,” said Baldwin.

Mine planners who use XECUTE, or other execution scheduling applications, can rapidly react to changes in truck availability by simulating the impact on load productivity, and then incorporate the required changes in their plan.

The solution also provides the user with functionality to update and maintain the current road network if required. Calibrated fleet settings can also be controlled through the solution, allowing for standardisation across the entire organisation.

“The market's excitement around FleetOptimiser is clear, and the feedback from our early adopters has been overwhelmingly positive. FleetOptimiser offers planners the solution they have been seeking and promises to deliver a significant productivity shift for the industry” Baldwin concluded.

For more information on the FleetOptimiser solution or other RPMGlobal solutions, please visit www.rpmglobal.com or visit the RPM Booth, number 6163 at MINExpo for live demonstrations and presentations.

The chart below shows that $RUL have resumed their buy backs. Most of the blue dots are buy back announcements, (except the one on 16th July). They stopped buying on 3rd July and after their trading update shares popped up a little. As they've fallen back below $1.65, they have resumed buying at a steady clip of c. 90k per day, with the running total now getting towards 6m shares in this program, or just over 2.5% SOI.

$RUL is one firm I have returned to recently. The top line progress looks good and, depending on the financial result, it is on my short list to increase when the result comes out, or at some reasonable time thereafter.

The point of this post is that the Board still clearly see value at $1.65, whereas earlier we couldn't know what their view really was above $1.50.

Nothing earth-shattering here, but just an observation.

Disc: Held in RL and SM

I am not a fan of updating the entire presentation and release - I would prefer them just to announce what has been changed. I had to compare the two presentations to find the delta (Although they pointed it out in small letters at the end of the slide as New Slide- 21 March 2023) I had to compare to make sure they haven't sneakily submitted something.

They have updated the following two slides.

Take away for me in the following slide is that, the Advisory division already achieved its FY23 target with the 4th Q to go. and to achieve the target Software division needs to do a further 3.3m EBITDA ( RPM Global thinks it is very much achievable based on historical evidence that their largest quarter by an order of magnitude is 4th Q) - So think this is positive.

So in total, they have done 10.9m in the first 3 Qs which equates to 3.6m per Q and they need to get 3.3m in Q4 to reach their target and also points Q4 is the largest software sales quarter by an order of magnitude..-- I will take it as a positive and potential to outperforming the target.

2nd new slide, in my opinion, just trying to say that their customer cash collection is heavily weighted towards H2, and the graph shows the tilt towards H2 as compared to H1 (the only exception was FY22 H2 when two customers failed to pay on the due date).

Not sure why the clarification, as this was very well known - but if they are confirming I would take it as a positive.

Overall, this is positive only. but this is a convoluted way of releasing positive news and that's why I am a bit suspicious.

As per yesterdays presentation:

What stood out to me, besides numbers I am happy with, was RUL’s focus on ESG within the report.

ESG or Environmental, Social and Governance reporting currently has no legislated or regulatory reporting guidelines or formats, however there is a growing consensus, that is creating a social licence towards ESG. Just look at that dude who sue’d his super fund!

RUL mentioned ESG in the report no less than 16x!!! 16x!!!

Part of this is obvious, RUL is in the mining industry, and therefore it’s a no-brain-required assessment to mention ESG as mining is “dirty”, or bad for the E in ESG. Three things stood out to me:

1.      They are choosing to report ESG before it is mandatory, thus making their own format and controlling their narrative – I think much of the report is written with an ESG lens or bias. This narrative helps guide investors, but also customers! If I’m a miner and I use an ESG-friendly business, then I the miner can claim I am ESG friendly. Tricksy RUL!

2.      RUL sold a subsidiary, GeoGAS to make itself cleaner and greener, and to demonstrate its commitment to ESG – proof to its narrative of words – as GeoGAS is solely a coal business.

3.      RUL is still considered a small cap ($300M to $2B) with a market cap of $420M, however I think I read comments in the presentation to the effect of “we are selling GeoGAS, to improve our ESG, and then institutions will be able to invest more in RUL as it will meet their ESG mandate requirements”.