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Strategic Advice

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IAF's expertise is often called upon by companies to:

select the correct business lines and projects

  • refine the project concept for a particular development

  • determine the best approach to the financing of the deal

  • develop the funding strategy and alternatives

    This advice is usually sought at or before the prefeasibility study stage.  

    This is readily illustrated by the following advisory assignment:

    Fuel Supply Contract

    IAF was called in to salvage the financing for a $110million development of a new fuel supply for a 600MW power station. The company’s financial advisers and banks had confused the completion obligations to the utility and required excessive recourse to the sponsor. IAF developed three alternatives within 24 hours and was commissioned to develop one of these. This involved negotiation with:

    1. power-plant developer and its lawyers in the USA and Australia

    2. government utility’s executive

    3. company’s own staff

    4. new source of funding.

    In the end, IAF developed a unique means of cofinancing this development with the financiers of the power station by way of a production payment. (IAF developed the first such production payment for a resource development under Crown law in 1980.)

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