Financial Modelling
Life cycle costing, CAPEX / OPEX estimations, Construction Estimates, IRR
Financial Modelling
Financial modelling is a vital tool for assessing the economic viability of a project and in determining whether or not the project is capable of servicing debt and operating expenses following capital investment. The modelling output is also used in the structuring of a repayment profile and to assess the risks associated with project finance (the investment).
Models are built for a base case scenario and a sensitivity analysis is conducted to determine the effects that any alterations to the various input variables will have on key outputs, namely IRR and NPV. At Nurizon we have undertaken a number of financial evaluations for mining and airport clients, although our expertise can be extended to any construction project. Inputs to the model are project specific and this service benefits from the experience of our key personnel’s in areas of expertise.
In addition to our portfolio of financial modelling services, Nurizon have arranged successful grant funding through the South African Department of Trade and Industry (the dti) Capital Projects Feasibility Programme and other investment partners, including the Development Bank of South Africa (DBSA).
Financial Modelling Services
Capital expenditure modelling
Maintenance and operational cost analysis
Operational expenditure modelling
Net present value and payback analysis
Whole life cost modelling
Asset renewal analysis
Project showcase
Bel-Air Bauxite Mine Guinea
Project:
Bankable Feasibility Study Funding Application
A number of feasibility studies had been completed by Nurizon during 2013 for a bauxite mine development in the Republic of Guinea close to the town of Bel-Air. The project reached a stage where funding was required to complete a further bankable feasibility study (BFS).
Karoo Gateway Airport Upgrade
Project:
Airport Upgrade: Detail Design
As part of an EPC appointment, Nurizon was tasked to upgrade the existing Karoo Gateway Airport, located in Beaufort West South Africa, to accommodate flight school training operations. Nurizon was familiar with the site and had previously undertaken concept designs as part of an earlier project (and for a different client), in which domestic airline operations were the main driver for the upgrade concept.
Elandspruit Coal Mine
Project:
Mine Development: Feasibility Study and Owner's Team Representation
Nurizon was contracted by the client to complete a feasibility study, addressing all civil, mining and electrical infrastructure designs, as well compiling a financial model for a new greenfields coal mine in Mpumalanga, South Africa.
Project Continued:
Front-end Infrastructure Development: Detail Design
A site to the east of Delmas, part of the Central Witbank Coal Field, was identified by the client for the development of a new open cast coal mine. It was estimated that the reserve would yield approximately 3 million tonnes of coal annually, with an estimated lifespan of 20 years.