LCOX tool

It is integrated into a wide range of technical and economic studies across various business units and is used to organize and present cost-related results to clients and partners.

The tool calculates the Levelized Cost of X (LCOX) based on technical data and CAPEX/OPEX estimates, whether derived from detailed studies or preliminary assumptions. Beyond basic calculations, LCOX incorporates the impact of financial strategies and presents the return on investment by including taxation, the product’s selling price, borrowing costs, inflation, and numerous other selectable parameters to reduce uncertainty and refine the chosen discount rate.

1. Technical input data

Parameters that can be customized for each project, based on detailed studies or selected assumptions.

2. Waterfall diagram

Visual breakdown of the factors influencing the final cost. Enables an effective and informative presentation of how each cost item contributes to the overall result.

3. Main result: “LCOX”

Highlighting the main result: “Discounted Cost of Production.”

4. Financial and economic input data

Inflation, tax rates and structure, type and amount of debt, discount rate (with a value consistent with the rest of the selected assumptions), initial selling price (correlated with inflation). These parameters allow for the integration of the impact of financial strategies on the project’s profitability.

5. Profitability Analysis

Evolution of return on investment over time. Allows for the adjustment of financing and sales price assumptions to ensure an acceptable scenario and identify optimization levers.