Case study

Nickel Refinery Financial Model

Industrial, Mining

We provided the client with a sophisticated nickel refinery project finance model, enabling an in-depth assessment of various plant configurations and funding structures to support their capital raise and bankable feasibility process.


Our client is a UK based public company with a portfolio of mining exploration assets in Australia, and mineral processing technology focused on battery materials.


Our client required a nickel refinery project financial model to support their capital raise and bankable feasibility process. The model assessed the impact of various nickel refinery plant configurations and funding structures for management to make decisions on the timing and type of funding required.

The key requirements included:

  • Key Project Phases: The model was required to allow for several milestones within the project, including feasibilities studies, construction and ramp-up and full-scale operations. Separate capital expenditure and funding assumptions were required for each stage.
  • Plant Configurations: The model allowed up to 5 plant configurations for different production capacities and processing technologies. Key variables were able to be flexed including operational (e.g. feed ore grade, moisture content, mineral recovery), capital expenditure, and funding.
  • Scenarios: The inclusion of a comprehensive scenario handler tool gave the ability to stress test key variables from an operational and funding perspective, and easily compare results through the model outputs.
  • Valuation: Company value calculations using discounted cashflow and earnings multiple methods.
  • Outputs: 3-way financial statements and dashboards detailing debt metrics and other financial ratios, equity ownership, and operational dashboard with key project metrics for selected plant.


We extracted assumptions from a technical model prepared by the client’s engineering and geologist teams, and performed a reconciliation within the model to ensure the technical part of the model was working correctly. Prior to handing over, Forecast also populated the model with assumptions for funding, capital expenditure and operating expenses.


The model provided the client with a sophisticated tool to assist in funding negotiations due to its ability to stress-test ability to repay debt at certain milestones. The model itself incorporated non-refinery expenses in order to provide a consolidated view of the whole company, whilst also allowing the detailed drill-down to the technical aspects of the plant.