Leading Advisors in Project Finance

Finance Modelling
for Natural Resources Projects4 day or 8 half-day course

Learn how to construct a robust project finance model from scratch and use it to assess the feasibility of a project and develop a financing plan.

The financial modelling course is aimed at financial analysts seeking a best practice approach to building a project finance model.

During this course, you will develop your own project finance model to perform a discounted cash flow analysis for the investment decision.

With pricing set by world commodity markets, you will need to run detailed sensitivity analysis to understand how your project reacts to external forces.

You will learn to model senior debt with a sculpted repayment profile to match a specified cover ratio and to develop a financing plan which provides a reasonable return to lenders and investors.

This course is designed to help you:

  • Develop and build flexible and robust financial models
  • Develop and optimise a financing plan
  • Understand and use NPV, IRR and debt cover ratio techniques
  • Understand and test model dynamics and performance
  • Construct and use a cash cascade to service financial instruments and reserve accounts
  • Simplify formulas using logical masks, switches and counters
  • Use audit checks and tests throughout the model development process
  • Perform sensitivity and scenario analysis

For convenience, the course can be delivered in two parts, and we can offer the first part as a standalone course in its own right.

  • Part 1: Methodology & Techniques

    You will construct a model to perform a discounted cash flow analysis for the investment decision, and explore the relevant sensitivities, to introduce an overall approach to building models, as well as a number of fundamental techniques and concepts which will prove invaluable in future modelling assignments.

  • Part 2: Extended Techniques

    Expand the model constructed in part 1 and explore a range of sophisticated techniques for developing a plan for financing a project.

    Starting with a simple term loan, you will develop a number of increasingly complex features associated with debt modelling, including grace periods, the cash cascade, debt sculpting, the cash sweep and the debt service reserve account (DSRA). Techniques for handling and managing circularities are explored, as are the concepts and applications of the various debt cover ratios.

  • Date Course Format Time Zone Price Register interest
    14-17 June 2021 Part 1 Online GMT £1200
    14-17 June 2021
    21-24 June 2021
    Parts 1 & 2 Online GMT £2400
    VAT of 20% is required to be levied for training courses conducted in the United Kingdom. Training courses conducted outside the UK may include local sales taxes, where applicable. The fees below are quoted net of any taxes.

In-house Courses

Where there is demand for multiple delegates from the same firm, it may be better to run an in-house course. This is a cost-effective method of training participants from the one company, conducted on your chosen date, either at your premises or ours, for up to eight delegates.

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    Course Details

    Full course program
    • Part 1: Methodology & Techniques
      • Model design and construction
        • The top down approach
        • The Principle of Error Reduction
      • Techniques for quick and efficient modelling
        • Keyboard shortcuts
      • Using range names
        • Pros and cons
      • The inflation index
      • The cash flow drivers
        • Production and revenue
        • Variable and fixed costs
        • Working capital
      • Profits and Retained earnings
      • The cash flow and net cash
      • Cash and overdraft (cash shortfall)
      • Capital expenditure and depreciation
      • Financing and capital structure
      • Interest and dividends
      • Tax losses and the tax calculation
      • Sensitivities and data tables
      • Graphs
      • Investment decision: base case vs expansion case
      • Conclusion and review
    • Part 2: Extended Techniques
      • Introduction and revision
        • Case study outline and model
      • Calculating interest
        • The calculation of interest
        • Interest on unpaid interest
      • Peak exposure
        • INDEX and MATCH functions
      • Subordinated debt
        • Deferring interest
        • Deferring repayments
        • Interest on unpaid interest
      • The cash cascade
        • Sources and uses of funds
      • Ratios
        • Annual debt service cover ratio
        • Loan life cover ratio
        • Project life cover ratio
      • Debt service reserve account
        • Future debt service obligations
        • Movements to and from the DSRA
      • Senior debt
        • Calculating debt requirements
        • Repayment holiday
        • Repayment period mask
      • Cash sweep
        • The circular problem
        • Recognising future cash flows
      • Debt sculpting
        • Restructuring the debt

    Companies we train

    "Wish I had this training a lot earlier in my professional career!"
    Ginkgo Tree Investment
    "A great course taught extremely well. Modelling won’t be the same ever again!"
    Ministry of Defence
    "Absolutely game changer in how you look at project finance modelling. A must do course to hit the ground running as an investment analyst."
    "Excellent principles for modelling – if only everyone did it this way!"
    African Infrastructure Investment Managers
    "If you use Excel regularly, the only reason not to go on this course is if you’ve already been on it. Very useful even if you’re an experienced user."
    "Excellent course for those with little experience in project finance modelling. Great interactive learning of modelling best practice"
    BioTherm Energy
    "I highly recommend this course to project finance professionals. The training really lifts up the bar of financial modelling skills and fills up any knowledge gaps you have in your tool set."
    China Road & Bridge Corporation
    "Excellent approach to building model, can definitely use what I have learnt here on a daily basis."
    Green Investment Bank
    "Extremely useful course that teaches you how to create complex financial models from scratch in a single and accurate manner."
    Foresight Group
    "From start to finish, the course covers all aspects of Excel and modelling, whilst also not over loading you at the same time."
    Sir Robert McAlpine

    Jack Clarke+44 207 562 0477

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