GBSN BEYOND AWARDS CEREMONY

Huston, S. (Creative Artist)
Johnson, D. (Creative Artist)
Tony-Okeke, U. (Creative Artist)
Bello, J. (Creative Artist)

School of Economics, Finance and Accounting

Activity: Participating in or organising an event › Public Engagement Event

Description

CAPSIM Management Simulation : Lithium feasibility case study & GBSN BEYOND AWARDS CEREMONY

Period	17 Nov 2021
Event type	Conference
Location	Washington, United States, District of ColumbiaShow on map
Degree of Recognition	International

Keywords

Feasibility analysis
Sustainable Development
Risk Management
Finance
Relationship management
Electric Vehicle

ASJC Scopus subject areas

Business, Management and Accounting (miscellaneous)

Documents & Links

After graduating and travelling in Australia for a few months, Corish Lithium hired you as an analyst. There is a lot of talk about how important Lithium is to help ‘decarbonise’ the economy and you are keen to make an impression with your financial modelling skills. However, getting the right information is proving somewhat challenging and there seem to be many people interested in the project with strongly-held opinions. You need to listen to their views and respond appropriately but then collect independent evidence, analyse it so you can make informed and impartial judgements. You are somewhat concerned about the discrepancy between optimistic sentiments expressed by CL’s CEO, the marketing team and your line manager, Barsymes, compared to the more sober assessments of geologists and engineers. Another distraction is the media storm brewing that is fanning local planning objections, not to mention a tricky relationship that you need to navigate with the Crown Estates (landowner). Barsymes is confident you can sort all this out and come up with forecasts that will assure CL’s risk-averse bankers and nervous shareholders. Memo Re: Trelavour financial viability estimates Barsymes Idris CFO Backdrop Due to challenging geological conditions and planning issues, CL’s Board considers the Trelavour project somewhat riskier than CL’s usual mining operations. Another management concern is the fluctuating price of Lithium & exchange rates (see information on CL drive) and protests by irate local property owners and retirees. Estimates Land: £500,000 (not depreciated) Initial engineering: £4,000,000 (economic life 8 years) Consultation and planning £1,500,000 (written off in year incurred) Project Life 11 years Estimated annual production Li2CO3 from year 2 to year 10: 180 tonnes Baseline (dissolution of Li) variable production costs are 50% of anticipated selling price. Remediation costs £600,000 in year 11 Estimated land residual value (if CL can sell all remediated land to mass housing developer for retiree housing) £1,000,000 at end of year 11. Steps: 1. Make some reasonable assumptions to forecast Lithium prices and CL’s project revenues 2. Gather additional appropriate data as required 3. Estimate project’s viability