Thaba Goats Business Plan — Capital Expenditure
The R2.45m capital programme across five stages: breeding stock, fencing, handling facilities, water infrastructure and vehicles.
Capital Expenditure
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- Overview & contents
- i. Important Notice
- 1. Executive Summary
- 2. The South African Goat Market
- 3. Why the Informal Market Matters More Than the Abattoir
- 4. Seasonality
- 5. SWOT and Competitive Position
- 6. The Five-Stage Roadmap and Gates
- 7. The Funding Ladder
- 8. Herd and Reproduction
- 9. Kid Mortality: The Industry's Named Constraint
- 10. Grazing, Land and Water
- 11. Animal Health
- 12. Route to Market
- 13. People and Operations
- 14. Regulation and Compliance
- 15. Unit Economics
- 16. Capital Expenditure
- 17. Financial Projections
- 18. Break-Even and Sensitivity
- 19. Risk Management
- 20. Implementation Timeline
- 21. Returns and Net Asset Value
- 22. Key Performance Indicators
- 23. Key Assumptions
- 24. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Stage Capital Schedules
- C. Appendix C: Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Funding Application Checklist
- F. Appendix F: Glossary
- 16.1 Stage 1 capital in detail
- 16.2 Later stages
- 16.3 Stage 2 capital items
- 16.4 Stage 3 capital items
- 16.5 Stage 4 capital items
- 16.6 Stage 5 capital items
|
R’000 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Infrastructure |
266 |
174 |
500 |
473 |
549 |
|
Breeding livestock |
103 |
7 |
16 |
26 |
36 |
|
Working capital |
58 |
46 |
60 |
65 |
70 |
|
Total capital deployed |
427 |
227 |
576 |
564 |
655 |
|
Cumulative |
427 |
654 |
1 230 |
1 794 |
2 449 |
Of the R2.449 million deployed, R1.962 million is fixed infrastructure, fencing, water, kraals, shelters, handling facilities and transport, R188 000 is breeding livestock and R299 000 is working capital. Only the infrastructure element is depreciated, over a twenty-year life appropriate to fencing and water reticulation. Breeding livestock is carried as a biological asset and revalued through the herd growth line rather than depreciated, and the working capital element funds stock, stores and receivables.
16.1 Stage 1 capital in detail
|
Item |
R’000 |
Share of stage |
|---|---|---|
|
Foundation does, 50 head |
90 |
21.1% |
|
Breeding bucks, 2 head |
13 |
3.0% |
|
Perimeter and camp fencing |
74 |
17.3% |
|
Water: borehole equipping, tanks and troughs |
70 |
16.4% |
|
Kraal, night shelter and kidding pens |
48 |
11.2% |
|
Handling facility, crush and scale |
28 |
6.6% |
|
Feed and medicine store |
26 |
6.1% |
|
Registration, veterinary setup and training |
20 |
4.7% |
|
Working capital, first twelve months |
58 |
13.6% |
|
Total Stage 1 |
427 |
100.0% |
The Stage 1 programme carries the whole of the site establishment, fencing, water, kraal, handling and store, against a herd of just 50 does. Measured per doe that looks ruinous at R8 540 a head. Measured against the 300 does those same assets will serve by Stage 5, it is the cheapest capital in the programme, and it is why the later stages spend almost entirely on camp extension and additional water rather than on establishment.
16.2 Later stages
16.3 Stage 2 capital items
|
Item |
R’000 |
Share of stage |
|---|---|---|
|
Additional camp fencing and rotation infrastructure |
84 |
37.0% |
|
Second water point |
52 |
22.9% |
|
Breeding buck, 1 head |
7 |
3.1% |
|
Shelter extension |
38 |
16.7% |
|
Working capital |
46 |
20.3% |
|
Total Stage 2 |
227 |
100.0% |
16.4 Stage 3 capital items
|
Item |
R’000 |
Share of stage |
|---|---|---|
|
Third and fourth camp fencing |
168 |
29.2% |
|
Third water point and reticulation |
118 |
20.5% |
|
Light delivery vehicle and trailer |
165 |
28.6% |
|
Breeding bucks, 2 head |
16 |
2.8% |
|
Kidding pen and shelter extension |
49 |
8.5% |
|
Working capital |
60 |
10.4% |
|
Total Stage 3 |
576 |
100.0% |
16.5 Stage 4 capital items
|
Item |
R’000 |
Share of stage |
|---|---|---|
|
Camp fencing extension to 200 does |
152 |
27.0% |
|
Handling and quarantine facility |
128 |
22.7% |
|
Water storage and reticulation upgrade |
134 |
23.8% |
|
Breeding bucks, 3 head |
26 |
4.6% |
|
Shelter and kraal extension |
59 |
10.5% |
|
Working capital |
65 |
11.5% |
|
Total Stage 4 |
564 |
100.0% |
16.6 Stage 5 capital items
|
Item |
R’000 |
Share of stage |
|---|---|---|
|
Camp fencing extension to 300 does |
186 |
28.4% |
|
Fourth water point and solar pump |
164 |
25.0% |
|
Feed store and lick storage expansion |
92 |
14.0% |
|
Breeding bucks, 4 head |
36 |
5.5% |
|
Shelter, kraal and kidding extension |
107 |
16.3% |
|
Working capital |
70 |
10.7% |
|
Total Stage 5 |
655 |
100.0% |