Lowveld Gold Macadamia — Appendices
A.1 Revenue Model
Section 16 · Business Plan
Appendices
A.1 Revenue Model
Appendix A: Detailed Financial Model Assumptions
A.1 Revenue Model
| Parameter | Year 3 | Year 4 | Year 5 | Year 7 (Steady) |
|---|---|---|---|---|
| Planted hectares (cumulative) | 320 | 320 | 320 | 320 |
| Yielding hectares | 160 | 280 | 320 | 320 |
| Average yield (t DNIS/ha) | 0.50 | 1.26 | 2.00 | 3.28 |
| Total output (tonnes DNIS) | 80 | 352 | 640 | 1,050 |
| Kernel recovery rate | 28% | 28% | 28% | 30% |
| Whole-kernel % of kernel | 55% | 57% | 59% | 62% |
| Average whole-kernel price (US$/kg) | 13.50 | 13.50 | 13.50 | 13.50 |
| Average halves price (US$/kg) | 8.50 | 8.50 | 8.50 | 8.50 |
| ZAR/USD exchange rate | 16.50 | 16.50 | 16.50 | 16.50 |
| Revenue (ZAR m) | 12.8 | 56.3 | 105.6 | 210.0 |
A.2 Cost Structure
| Cost Category | Basis | Year 5 (ZAR m) |
|---|---|---|
| Direct labour (harvesting) | ZAR 8,500/tonne DNIS | 5.4 |
| Processing costs | ZAR 62,000/tonne kernel | 11.1 |
| Packaging and cold storage | ZAR 18,000/tonne kernel | 3.2 |
| Transport and logistics | ZAR 24,000/tonne kernel | 4.3 |
| Agrochemicals and fertilisers | ZAR 28,000/ha/annum | 9.0 |
| Irrigation and water | ZAR 12,000/ha/annum | 3.8 |
| Other direct costs | Various | 4.2 |
| Overheads and administration | Fixed + variable | 26.6 |
Appendix B: Glossary of Terms
| Term | Definition |
|---|---|
| B-BBEE | Broad-Based Black Economic Empowerment, South Africa’s legislative framework for economic transformation |
| CIPC | Companies and Intellectual Property Commission of South Africa |
| DNIS | Dry Nut-In-Shell – the industry standard unit of measurement for macadamia production |
| DSCR | Debt Service Coverage Ratio – the ratio of net operating income to total debt service payments |
| EBITDA | Earnings Before Interest, Tax, Depreciation and Amortisation |
| EPC | Engineering, Procurement and Construction – a contractual arrangement for construction projects |
| FSSC 22000 | Food Safety System Certification, a GFSI-benchmarked food safety standard |
| GlobalG.A.P. | Global Good Agricultural Practices – an international food safety and sustainability standard |
| HACCP | Hazard Analysis Critical Control Points – a systematic approach to food safety |
| IDC | Industrial Development Corporation of South Africa |
| IRR | Internal Rate of Return – the discount rate at which net present value equals zero |
| King IV | The King IV Report on Corporate Governance for South Africa (2016) |
| MCT-1 | A high-yield macadamia cultivar developed in South Africa |
| NPV | Net Present Value – the present value of future cash flows less the initial investment |
| SAMAC | Southern African Macadamia Growers’ Association (previously Macadamias South Africa) |
| WACC | Weighted Average Cost of Capital |
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