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Au Capital Development Plan

Step 1 - Opportunity Assessment

  • Technology understanding
  • Use of components that currently exist in the market
  • Market potential for the use of the technology
  • Alternative uses for technology and its derivatives
  • Expansion capabilities of the project
  • Whether the technology will need to be regulated
  • What approvals are required to build and operate the technology
  • Environmental considerations
  • What security is required over the technology in terms of patents / trademarks / copyrights
  • Contact with host government departments and local authorities
  • Identification of partners: industrial and financial
  • Initial financial appraisal
  • Financial certainty of opportunity
  • Initial risk analysis
  • Timing of Project development
  • Resource requirements
  • Drafting of Co-operation agreements with project partners

 

Step 2 - Project Definition

  • Assignment of roles
  • Choice of advisors such as; market, technical, tax and accounting, legal, regulatory, planning, environmental
  • Technology augmentation
  • List of activities
  • Full timescale with agreed milestones
  • Technology fully documented (blueprints)
  • Resources and Logistics
  • Location – knowledge of specific zoning for local /national government support
  • Environmental assessment / reporting
  • Budgeting and investment from project parties in terms of time and initial equity
  • Technology Management
  • Market for technology
  • Alternative uses for the technology and its derivatives
  • Supplier identification
  • Patenting / Licensing requirements
  • Regulatory Assessment
  • Permits / certificates required
  • Supply Chain (potential sources and identification of potential weaknesses)
  • Competitor analysis
  • Establish legal entity/ies
  • Funding sources identification and analysis
  • Funding of project vehicle / seed equity raise
  • Project Structure (listing of agreements required)
  • Operational and maintenance plan
  • Project and Business Plan (project finance, sales or service model)
  • Financial Plan to support business plan
  • Back up planning

 

Step 3 - Permitting and Licensing

  • Preparation of permitting documentation
  • Site plan and design
  • Outline design of project
  • Environmental impact assessment
  • Project emissions
  • Particular licenses / redefining legislation
  • Health and Safety requirements
  • Grid connection
  • Local and national planning (eg. transport movements and links)
  • Geotechnical survey
  • Archaeology survey as necessary

 

Step 4 - Risk Analysis

  • Risk Identification
  • Technical
  • Environmental
  • Location / site
  • Feedstock
  • Revenue
  • Offtake
  • Legal
  • Financial
  • Regulatory
  • Counterparties
  • Operational
  • Timescale
  • Risk Mitigation
  • Insurance availability, construction and operation / exploitation period
  • Risk management

 

Step 5 - Business Planning Post Permitting

  • Re-assignment of Roles
  • Re-defining technology as necessary
  • Optimisation of technology
  • Refining of business plan and timing
  • Execution of business plan

 

Step 6 - Supply Chain

  • Industrialisation
  • Purchase Specification development
  • Purchase terms and conditions developed
  • Engage with suppliers – create competition
  • Contractual structure and agreements drafted 

 

Step 7 - Financing

  • Implementation of financing plan
  • Information Memorandum
  • Financial modelling plus auditing
  • Tax efficiency
  • Create competition between potential funding sources
  • Use of existing relationships and develop new relationships
  • Identification of grant funding (local, national and international)
  • Equity (ultra and high net worth individuals, funds, institutions)
  • Asset financing
  • Senior debt (corporate, project, securitisation) 
  • Tax wrappers
  • Structured financing – use of tax efficient structures
  • Feedstock and revenue off-take agreements
  • Water usage agreements
  • Grid connection agreements
  • Waste material disposal agreements
  • Operational and maintenance agreements
  • Funding and security agreements
  • Insurance arrangements
  • Refinancing through initial public offering, trade sale, re-leveraging 

 

Step 8 – Construction / Technology Development

  • Construction Milestones
  • Construction milestone sign off by independent technical advisor
  • Independent technical verification of technical capabilities/construction schedule for the funding parties
  • Manufacturing procedure development
  • Quality control development
  • Dealing with change orders
  • Dealing with any potential changes required to project and financing documents

 

Step 9 – Operational Exploitation Period

  • Joint venturing / licensing arrangements for ex home countries
  • Financial reporting
  • Operational Reporting
  • Constant review of business plan
  • Constant review of market
  • Constant review of competitors
  • Constant review of financial markets
  • Dealing with any potential changes required to project and financing documents

 

Step 10 – Exit Strategy

  • Timing range
  • Return required
  • Source of exit;
    • trade sale
    • initial public offering
    • re-leveraging
    • merger