As Small Modular Reactor (SMR) developers move toward commercialisation, establishing a credible and investor-ready financial model is a critical step. This is particularly relevant in emerging markets such as Africa, where project structuring must align with local conditions while meeting international investor expectations.

Damona supported an SMR developer in building and validating its business plan and financial model for a project in Africa, in preparation for an upcoming investment round.

The objective of the engagement was to develop an integrated financial model, validate key assumptions, and ensure the overall business case was robust, transparent, and ready for investor scrutiny.

To meet this objective, Damona conducted the following activities:

• Financial model development: Design and construction of a comprehensive financial model covering CAPEX, OPEX, revenues, and full lifecycle projections, including integrated P&L, cash flow, and balance sheet outputs.
• Assumptions structuring and validation: Definition and refinement of key technical, economic, and financial inputs (capacity, deployment schedule, cost structure, financing assumptions), supported by internal challenge and expert review.
• Scenario and sensitivity analysis: Development of multiple scenarios and sensitivity testing across key variables such as cost assumptions, WACC, and deployment timelines to assess financial resilience.
• Benchmarking and stress testing: Validation of model assumptions and outputs against comparable SMR projects, including cost structures, timelines, and key financial metrics, to ensure consistency and credibility.
• Investor metrics and business case framing: Calculation and interpretation of key indicators, supporting the positioning of the project within an investor-relevant framework.

Damona’s work provided a structured and defensible financial foundation, supporting investor discussions and ensuring alignment between technical assumptions, economic performance, and strategic positioning.