FerroGlobe Resources Group Business Plan › Section 2 › Company Overview & Strategic Vision

2.1 Corporate Profile

FerroGlobe Resources Group (Pty) Ltd is a private South African
company being formed in 2026 to operate as a vertically integrated steel
and raw-materials platform. The Company is established with its
registered office and primary trading operations in Johannesburg, South
Africa, with planned satellite offices in Lusaka (regional Sub-Saharan
Africa hub), Dubai (global trading and treasury), and Mumbai
(procurement and Asian sourcing). FGRG’s product universe spans long
steel products (rebar, wire rod, beams, sections), flat steel
(hot-rolled coil, cold-rolled coil, coated steel), specialty grades, and
bulk raw-material inputs (iron ore, metallurgical coal, coke,
scrap).

2.2 Vision, Mission, Values

Vision

To build Sub-Saharan Africa’s pre-eminent vertically integrated steel
and raw-materials platform — generating USD 5 billion in annual revenue
within seven years and driving the continent’s industrialisation through
reliable, competitively priced steel supply.

Mission

FGRG combines disciplined commodity trading with selective industrial
processing, integrated logistics, and clean-energy supply to deliver
superior, risk-adjusted returns to shareholders while advancing African
industrial capacity, employment, and the global decarbonisation
agenda.

Values

• Commercial discipline — every tonne, every contract, every
  kilowatt-hour earns a measurable return.
• Capital efficiency — vertical integration only where it captures
  durable margin or strategic optionality.
• Operational excellence — international best-practice safety,
  environmental and quality standards from day one.
• Local partnership — joint ventures, BBBEE participation, and
  skills development as core to social licence.
• Transparency — open-book governance, IFRS reporting, and tier-1
  audit from inception.

2.3 Strategic Vision — The 7-Year Picture

By Year 7, FGRG will operate as a tier-2 emerging-markets steel
merchant with a differentiated African industrial footprint. The target
end-state comprises 5.2 million tonnes of annual trading throughput, 1.4
million tonnes of owned processing capacity (combination of brownfield
acquisition and greenfield mill), proprietary chartered shipping
covering 60% of bulk volumes, integrated solar and wheeled-energy supply
for owned plants, and an integrated trade-finance and treasury function.
Revenue is targeted at USD 4.3 billion, EBITDA at USD 870 million (20.2%
margin), and the Company will be positioned for either public listing on
the JSE Main Board (with possible secondary LSE listing) or a strategic
exit to a global merchant peer.

2.4 Business Model Pillars

Figure 2.1

FGRG’s business model rests on four operationally distinct but
commercially integrated pillars:

A. Steel & Raw-Materials Trading

The trading franchise is the cashflow engine of the business. FGRG
will buy long and flat steel products from Asian and Middle-Eastern
mills (China, India, Türkiye) and sell into African markets through
long-term offtake agreements with EPC contractors, mining houses,
distributors and government procurement programmes. The trading book is
structured back-to-back, with each cargo hedged through the LME Steel
Scrap, Hot-Rolled Coil futures, and FX forwards. Inputs traded include
iron ore (from Brazilian, Australian and Sishen sources), coking coal,
metallurgical coke, and ferrous scrap.

B. Industrial Processing

From Year 2, FGRG begins selective vertical integration. The first
asset is a brownfield rolling-mill acquisition in Southern Africa
(long-products, capacity 0.4–0.5 Mtpa), followed by two service centres
(East and West Africa) providing cutting, slitting, decoiling and
galvanising. From Year 4, construction begins on a 1.0 Mtpa greenfield
mill, expected to be commissioned in Year 7. Processing margins (8–20%)
materially supplement trading margins.

C. Logistics & Shipping

Logistics is a critical enabler of margin in international steel
trading. FGRG will charter Supramax and Handysize bulk vessels on
time-charter and voyage-charter terms, optimise inland logistics through
rail and road carriers across the Maputo, Beira, Dar es Salaam and
Walvis Bay corridors, and operate dedicated port-storage and warehousing
hubs. From Year 5, FGRG plans to take delivery of two owned vessels for
core corridor service.

D. Energy & Power

Energy integration reduces production cost volatility and supports
the Company’s decarbonisation ambition. FGRG will develop solar
generation (initially 50 MWp, scaling to 200 MWp by Year 7), enter into
wheeled-energy agreements with South African Independent Power
Producers, and operate an in-house energy trading desk to optimise
dispatch and arbitrage. By Year 7, owned and contracted renewable
capacity is targeted to cover 60% of the Group’s electricity load.

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 FerroGlobe Resources Group (Pty) Ltd.