We recently held a Meetup for the Brisbane Modellers' Meetup group and I'm pleased to say that the video is now available below. The speaker Eris O'Brien is a highly experienced modeller and at this informative presentation he took a look at the basics of incremental cash flows for both new, standalone projects, and for projects at existing sites, to see if we can isolate the incremental effects, or what to do when we are dealing with complexity which requires us to model the entire operations cash flows.
He also discussed sunk costs. Next time your manager is yelling at you "but we spent $5 million on the pre-feasibility study, what do you mean that's not included in the valuation?" you will have an answer. Watch this video to learn how companies deal with the issue of substantial sunk costs, and learn the exceptions to the rule - such as when doing a post implementation review (PIR)
Eris O'Brien is a commercial advisor and valuations expert with 20 years experience in major projects in mining, electricity generation and, oil and gas. He is the Managing Director of Lazuli Consulting, a Brisbane based firm in its twelfth year that provides commercial advisory and business development consultancy services to help clients grow their businesses profitably.
To see where and when our next live Meetup events are happening, see our Meetup page.