K&M was hired by CCA Capital Partners to provide energy and financial advisory services for the Jamalco bauxite refining facility. K&M’s scope included three tasks.
• Building a financial model of Jamalco that forecasts P&L, Balance Sheet, and Cashflow statements. The model was used to analyze cash flow implications for the refinery in various scenarios. These results were used to estimate Jamalco’s cash flow and capital needs and recommend business models plan that would be required to keep the company viable
• Analysis of Jamalco’s Energy cost, bauxite extraction cost, and personnel cost relative to other players in the global alumina refinery market space to determine Jamalco’s long-term competitive position in the international alumina market
• Analysis of recent developments in energy markets (primarily oil prices), the implications for global alumina markets, and the related impact on the Jamalco business model. Recommendations on integrating these findings into the fuel consumption and energy strategy were also covered within this segment of K&M’s services.