Ferrovanta Mining Services Business Plan › Section 1 › Executive Summary

1.1 Investment Highlights

Ferrovanta Mining Services (Pty) Ltd (“Ferrovanta” or the “Company”)
is a newly constituted, institutionally backed contract mining platform
headquartered in Johannesburg, South Africa. The Company is being
established to capture a structural growth opportunity in outsourced
mining services across the Southern African Development Community (SADC)
region and, in later phases, the broader African continent.

Ferrovanta is seeking to raise ZAR 9.5 billion in blended senior
debt, mezzanine, equipment leasing, and equity financing to assemble one
of the most modern integrated mining fleets in Sub-Saharan Africa, with
the operational capacity to deliver in excess of 21 billion Rand of
annual revenue and approximately 4.0 to 5.7 billion Rand of EBITDA by
Year 5 to Year 7 of operation.

The investment thesis rests on five demonstrably durable industry
tailwinds: (i) the irreversible global outsourcing trend by mining
houses seeking to convert fixed capital expenditure into variable
operating cost; (ii) a structural commodity super-cycle anchored by the
global energy transition and battery-mineral demand; (iii) significant
fleet replacement and modernisation requirements across the African
mining base; (iv) high and rising barriers to entry that protect
established platforms with scaled fleets; and (v) a fragmented African
market with multiple consolidation opportunities.

1.2 The Opportunity

The global contract mining services market was valued at USD 20.3
billion in 2024 and is projected to expand to USD 33.3 billion by 2034,
representing a compound annual growth rate of 5.1%. South Africa alone
accounts for approximately USD 1.27 billion of mining equipment turnover
in 2025, with the broader mining sector contributing approximately 7% of
national GDP and directly employing more than 450,000 people. The
country produces over 70% of global platinum group metals supply, 250
million tonnes of coal annually, and is a top global producer of
manganese, chromium, and gold.

Figure 1.1

The opportunity for a new, well-capitalised entrant is amplified by
the fact that the South African contract mining sub-sector remains
structurally fragmented. The top five established contractors — Aveng
Moolmans, Concor Mining Services, Trollope Mining, Fraser Alexander, and
Master Drilling — collectively control an estimated 55% to 60% of the
addressable market, leaving substantial white space for a modern,
multi-commodity platform with disciplined execution and competitive
cost-per-tonne economics.

1.3 Use of Proceeds

The proposed ZAR 9.5 billion capital raise will be deployed against
three principal categories of investment, structured to ensure that the
bulk of funding is directly tied to revenue-generating assets and
contractual obligations.

Figure 1.2

1.4 Financial Highlights

Ferrovanta’s seven-year financial trajectory is designed to deliver
institutional-grade returns while maintaining a conservative leverage
profile commensurate with the long-duration nature of its underlying
contracts. Revenue scales from ZAR 4.0 billion in Year 1 to
approximately ZAR 21.2 billion in Year 7, with EBITDA margins expanding
from 15% to 27% as the business achieves operating leverage, fleet
utilisation maturity, and reduced unit costs through scale procurement
of fuel, tyres, and spares.

Figure 1.3

1.5 Investor Returns

Based on the base case operating plan, the equity component of the
capital structure is projected to generate a Money Multiple (MoM) of
approximately 4.2x and an Internal Rate of Return (IRR) in the range of
28% to 32% over a seven-year hold, depending on the precise exit
multiple realised. Senior debt holders are protected by a minimum
projected Debt Service Coverage Ratio (DSCR) of 1.42x in Year 1, rising
to in excess of 4.0x by Year 7 as the business deleverages from
operating cash flows.

1.6 Why Now

Three converging factors make this the optimal moment to launch and
capitalise a new Pan-African contract mining platform:

• Outsourcing Acceleration: Major mining houses
  including Anglo American, Exxaro, Glencore, and Sibanye-Stillwater are
  accelerating the conversion of in-house mining capacity to contracted
  services, in order to free up balance-sheet capital and de-risk
  operational execution. Industry research suggests that the share of
  African open-cast volume executed by specialist contractors has risen
  from approximately 38% in 2015 to over 55% in 2024.
• Battery-Mineral Super-Cycle: The World Bank
  estimates that demand for critical minerals required by the energy
  transition will increase by nearly 500% by 2050. Africa hosts the
  world’s largest reserves of platinum, manganese, cobalt, and copper, as
  well as significant lithium, nickel, and rare-earth deposits. New mines
  will require specialist contracting capacity to come on-stream.
• Fleet Renewal Window: Approximately 35% to 45%
  of the African open-cast mining fleet is now approaching
  end-of-economic-life, creating both replacement demand and an
  opportunity for Ferrovanta to deploy a modern, lower-emission,
  technology-enabled fleet at a moment when ESG-driven clients are willing
  to pay a premium for compliant capacity.

1.7 Conclusion

Ferrovanta represents a rare opportunity for institutional investors
to access a high-growth, asset-backed, cash-generative platform business
in one of the world’s most strategically important mining regions. The
combination of an experienced founding management team, a clearly
defined commercial strategy anchored in long-term contracts, a
disciplined capital structure, and a robust risk-management framework
positions the Company to deliver superior risk-adjusted returns across
both base case and downside scenarios.

The balance of this Business Plan provides the underlying analysis,
operational detail, financial modelling, and supporting evidence
required for a full institutional investment review.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Ferrovanta Mining Services (Pty) Ltd.