Running the numbers - African Natural Resources Center - Analytical Report
|Publishing Date||13/10/2017 12:17|
Categories: African Natural Resources Centre
Description <a href="t3://file?uid=98279"><img src="fileadmin/uploads/afdb/Images/Photos/Large/running_the_numbers_cover.jpg" data-htmlarea-file-uid="98284" data-htmlarea-file-table="sys_file" alt="" /></a> This report, the first study in Africa, explores how African governments use financial models to manage oil & gas and mining projects. Jointly produced by the African Natural Resources Center of the AfDB and Open Oil, a boutique financial advisory firm, the study begins with the simple notion that no investor would ever approach an investment decision on an extractive project without the backing of a comprehensive financial model. Such a model would link expected production profile, prices, capital and operating expenditure and corporate tax rates to the projected cash flow of the project and its profitability. The authors conducted a survey of nearly 50 government officials to illustrate how widespread use of financial models is and how their results are used to inform policy.