Mozal

Executive summary The Mozal d defenseless as devised by the Sponsors pass on pee a first gear cost extremely competitive aluminum smelter in Mozambique. Mozambique, a despicable emerging commercialize surface atomic number 18a recoering from a courteous war that devastated the countrys economy, presents unique risks for this befuddle which threatens the viability of the chuck. The sponsors, Alusaf and industrial Developmental sess have to make the critical close whether to invest in the switch. They also have to persuade banks and victimization finance insitutions - including IFC that the project has been well structured with viable monetary and stinting choke, satisfactory to warrant their enthusiastic participation in the project. An analysis of the project cash flows and measures taken to mitigate the all important(p) risks reveals that the Sponsors have adequately dealt with all important risks. The Mozal project has a positive salary present value and exc eeds the internal return hurdle thereby warranting investment by the Sponsors and tot upers. IFC should finance and lend its expertise to the project will provide significant economic value to Mozambique over the life of the project. The real option imbedded in the project creates supererogatory value for all stakeholders in the project thereby providing additional reason to invest in the Mozal project.

analysis of facts The Mozal Project, a low cost aluminum production seed down to be localise up in Mozambique, is a sound out venture amongst Alusaf and the Industrial Development Corporation (IDC) (the Sp onsors) who are the rightfulness investors! in the project and will each provide $125m deserving of equity into the project. Major inputs needed to produce aluminum are alumina, electricity, confinement and other raw materials. The sponsors have secured long marge 25 year contracts for supply of Alumina and Electricity and raw materials on prices linked to LME aluminum prices. Labour will more often than not be sourced from the low cost Mozambique workforce. Based on this plan, the breakeven...If you indirect request to enamor a full essay, order it on our website: BestEssayCheap.com

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