Scm Decisions

SCM Decisions is a specialist advisory firm helping natural resource clients align their strategic capital management decisions with business strategy. We have the skills, experience, and powerful analytical tools to assist clients understand the complex risk exposures created by high levels of technical and financial market uncertainty, drawn-out investment horizons, competing for design choices, alternative financing, and layered government participation. We use an Integrated Valuation and Risk Modelling framework to understand how risk and the ability to manage risk impact our clients’ capacity to raise finance, invest capital, create value, maintain a strong balance sheet, and discipline their corporate portfolio. Our analysis provides clients with insight into their capital management decisions that better balance the trade-offs required in a volatile business environment. We assist clients in the natural resource industries in the following areas: 1. Evaluation of projects involving real option decisions such as the choice between front-loaded and staged capital development plans, the trade-offs associated with the switch between open pit and underground operations, and the potential opportunity linked to marginal satellite resources. Project financing with embedded commodity derivatives such as pre-paid forward agreements, commodity-linked debt, sliding-scale royalties, streaming, and off-take agreements. Contingent taxation such as windfall profits tax, carried interests, and contingent royalties. Economic analysis sections for NI43-101 reports. Professional development courses discussing these topics.