K&M is expanding its reach in assisting mines and large energy users to reduce the cost of power and improve reliability of power supply.
K&M’s most recent engagement in this space was in Jamaica where K&M assisted a large bauxite mine and alumina refinery. K&M was initially engaged by one of the lenders to a combined heat and power plant (CHP) that would sell steam to the alumina refinery under a long-term steam supply agreement. K&M provided technical and financial due diligence services, including reviewing relevant project and financial agreements, conducting a site visit to interview the construction management staff and to verify the progress of the works, reviewing the CHP project financial models and valuation report, and preparing a report with the main findings and conclusions.
K&M was then engaged to assist one of the owners of the alumina refinery with energy cost analysis and corporate finance services. This work included building a financial model of the alumina refinery that forecasts P&L, Balance Sheet, and Cashflow statements and that could be used to analyze cash flow implications for the refinery in various scenarios, including the impact of COVID-19. K&M’s work also included analysis of energy cost, bauxite extraction cost, and personnel cost relative to other players in the global alumina refinery market space to ultimately determine the client’s long-term competitive position in the international alumina market. In addition to this analysis, K&M examined the impact of recent developments in energy markets (primarily oil prices) and made recommendations on fuel consumption and energy strategy.
As large energy users explore their power options, K&M can help clients create unique and innovative ways to reduce the cost of power and create sustainable power solutions.