Quotation Are Invited For Appointment Of An Independent Financial Advisory Firm To Develop, Test, Validate, Formally Sign Off A Comprehensive Financial Business Model

Quotation are invited for Appointment of an Independent Financial Advisory Firm to Develop, Test, Validate, Formally Sign off a Comprehensive Financial Business Model for Timbadola 3. SCOPE OF WORK 3.1 Independent Model Development The appointed firm will be required to: 5 Independently construct a full financial business model for Timbadola without reliance on prior internal modelling. Review, interrogate, and test all operational inputs and assumptions received from Operations. Apply recognised, industrystandard financial modelling methodologies and modelling best practices. 3.2. Evaluation of Key Model Components The model must incorporate and critically assess: Revenue assumptions: pricing, volumes, market conditions, production outlooks. Revenue streams lumber and biomass income. Cost structures and cost drivers: fixed/variable costs, operating expenditure, maintenance costs, and input costs. Capital requirements: capex plans, replacement capex schedules, and lifecycle costing. Funding structure and financing assumptions: debt/equity mix, interest rates, repayment structures, covenants. Cash flow projections: including working capital cycles and liquidity considerations. Key financial metrics: NPV, IRR, payback period, profitability ratios, gearing measures, and other relevant indicators. 3.3. Scenario and Sensitivity Analysis The appointed firm must build: Scenario analysis (e.g., base case, downside case, upside case). Sensitivity analysis to test model robustness under varying assumptions such as price changes, production levels, operating costs, interest rate movements, the replacement of biomass with oil and coal in the CHP process and capex adjustments. Risk assessment highlighting financial sustainability and key risk exposures. 4. MODEL TESTING AND VALIDATION The independent advisor must: Test the internal logic, calculations, links, and consistency of the model. Validate all assumptions for reasonableness, internal consistency, and supportability. Confirm that methodologies applied align with professional, ethical, and industry standards. Provide feedback on robustness, accuracy, and areas requiring clarification or adjustment. 5. DELIVERABLES The independent advisor is expected to deliver the following: Fully developed and functional financial business model. Model documentation, including assumptions register and technical notes. Comprehensive model validation and review report. Formal signoff letter from a suitably qualified senior professional. Presentation of final model and findings to EXCO and FINCO. Tender Link : https://www.safcol.co.za/opportunities/procurement-opportunities/