Sand Crushing and Mining – Investor Documentation – Africa

BUSINESS PLANNING | INVESTOR DOCUMENTATION | STRATEGIC CONSULTING | MARKET RESEARCH

Ruskin Felix Consulting created a comprehensive business plan for crushed sand by understanding the industry, global market, market structure, growth drivers, market dynamics, operational analysis, development approach, opportunity analysis, and the financial viability of the product. We also created the go-to-market strategy, pricing mechanism, and transition, built competitive advantages, and understood the source of revenue for expansion.

The main aim of the business is to set up a unit for Sand crushing, crushed stone, and gravel manufacturing with a target focus and unit plant in Africa. The plan also analyses and evaluates the setting up of the plant in countries of Africa and recommends the most suited country in terms of both the value generated and the opportunity available. The overall business model is initially very streamlined, and the company will expand into various other mining industry segments of minerals, ores, and rare metals from an overall expansion perspective. The complete aim is to provide high-quality products in the field of crushed stone, gravel, and manufactured Sand through its unit operations. The company will run on various business models, once it looks to expand but initially will be focused on creating B2-B relationships by way of an established distribution network.

The demand for cost-effective and efficient methods of producing crushed sand is increasing as natural sand deposits near growth centers deplete and environmental regulations become more stringent. What adds to the significance of the change is the rapid pace of urbanization. According to the United Nations, the urban population could double to 6.5 billion by 2050. To accommodate growing populations, additional housing, parks, roads, and subways are required – and all of these require sand in some form or another as a fundamental building component. 

The project is profitable with a net outlay of $3.1 Million. The valuation of the company is $26 Million, and that value should be used to raise funds for the company. The project is viable and should be executed as it has a positive NPV of $10.9 Million on a 5-Year projected basis. Further expansion from Ghana to other countries like South Africa should also be done as well as lateral expansion into mining and processing of other minerals and ores which are highly available in the African Subcontinent. 

The overall capital required for setting up the 500 tph plant is $3.12 million. This should be raised at an overall valuation of $26.47 million. The overall valuation of the Sand Crushing Plant will be $26. 79 million. This is based on a weighted average value of PE-based valuation on EBITDA and FCFF and the NPV of the project and the overall terminal value of the project. The range for the valuation with a 10% factor is $24.11 million to $29.47 million. 

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