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 Financial modelling for fundraisingClientGlobal mining and metals company Objective Our client was seeking to raise government funds to construct a coal mining complex. Approach Swiss Appraisal’s consultants were engaged by our client's CTO, CFO, and IFRC officials to conduct a comprehensive analysis of the business plan and financial model of the investment project. The assessment of the correctness of the calculations was based on an analysis of the structure of the business plan, the reliability of the initial data, assumptions, and the assessment of the technological and economic feasibility of the project – within strict requirements of federal regulations. The risk assessment of the project included analysis of the financial viability of the investor and the project, the availability of funding sources, and the risk of insolvency. Market prices, which exert significant influence on the NPV of such projects, were assessed for products, output, currency fluctuations, operating costs, and the volume of capital expenditures. The assessment of the financial, economic and budgetary effectiveness of the project consisted of analysing such indicators as net present value (NPV), internal rate of return (IRR), profitability index (PI), payback period (PB), and total anticipated revenue. Results Swiss Appraisal determined the project to be economically feasible. We concluded that, subject to federal financing:
Based on our conclusions, our client applied and was selected for investment under the federal program. Return to the list of projects |
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