Copperfrontline Logistics Business Plan — Appendix C: Funding, Debt Service and Balance Sheet Schedules

Equity, term facility and asset finance schedules, debt service by year and the balance sheet across the projection.

Appendix C: Funding, Debt Service and Balance Sheet Schedules

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  • C.1 Capital structure
  • C.2 Capital expenditure and funding
  • C.3 Debt service
  • C.4 Balance sheet
  • C.5 The harvest years and investor returns

C.1 Capital structure

US$ million

Terms

Equity

4.40

65% of the share capital

Asset finance across the plan

7.89

75% of each vehicle at 13.0% over 6 years

Term facility

0.90

11.5%, amortising, secured on the depot

Total capital

13.19

Application of equity proceeds

US$ million

Share

Vehicle deposits at 25% of cost

2.63

60%

Depot, workshop, yard and equipment, net of term facility

0.96

22%

Working capital gap on 55-day customer terms

0.52

12%

Trading losses to EBITDA breakeven in month 10

0.19

4%

Contingency and pre-operating costs

0.10

2%

Total

4.40

100%

C.2 Capital expenditure and funding

US$ million

FY2027

FY2028

FY2029

FY2030

FY2031

Total

Vehicles — tractor and trailer combinations

1.95

1.56

1.95

2.34

2.73

10.53

Depot, workshop and secure yard at Kitwe

0.62

0.18

0.24

0.16

0.12

1.32

Workshop equipment and tooling

0.18

0.09

0.11

0.08

0.06

0.52

Telematics, fuel management and systems

0.10

0.06

0.09

0.07

0.07

0.39

Total capital expenditure

2.85

1.89

2.39

2.65

2.98

12.76

Of which funded by asset finance

1.46

1.17

1.46

1.75

2.05

7.89

Of which funded by equity

1.39

0.72

0.93

0.90

0.93

4.87

Depreciation charge

0.26

0.43

0.64

0.88

1.14

Net book value at year end

2.59

4.05

5.80

7.57

9.41

C.3 Debt service

US$ million unless stated

FY2027

FY2028

FY2029

FY2030

FY2031

EBITDA

(0.12)

0.38

0.93

1.66

2.61

Debt service — principal and interest

0.41

0.73

1.05

1.44

1.90

Debt service cover

-0.29x

0.52x

0.89x

1.15x

1.37x

Covenant typically required

1.25x

1.25x

1.25x

1.25x

1.25x

Headroom or shortfall

(1.54)x

(0.73)x

(0.36)x

(0.10)x

0.12x

Asset finance outstanding

1.37

2.28

3.30

4.35

5.37

Term facility outstanding

0.80

0.68

0.54

0.39

0.21

Total debt outstanding

2.17

2.96

3.84

4.74

5.58

Closing cash

3.34

2.23

1.16

0.46

0.18

Net debt

-1.17

0.73

2.68

4.28

5.40

C.4 Balance sheet

US$ million, at year end

FY2027

FY2028

FY2029

FY2030

FY2031

Fleet, depot and equipment, net

2.59

4.05

5.80

7.57

9.41

Trade receivables at 55 days

0.12

0.37

0.66

1.03

1.47

Cash

3.27

1.96

0.62

-0.45

-1.18

Total assets

5.98

6.38

7.08

8.15

9.70

Share capital

4.40

4.40

4.40

4.40

4.40

Retained earnings / (accumulated deficit)

(0.61)

(1.05)

(1.29)

(1.20)

(0.58)

Total equity

3.79

3.35

3.11

3.20

3.82

Asset finance

1.37

2.28

3.30

4.35

5.37

Term facility

0.80

0.68

0.54

0.39

0.21

Trade and other payables

0.02

0.07

0.13

0.21

0.30

Total liabilities

2.19

3.03

3.97

4.95

5.88

Total equity and liabilities

5.98

6.38

7.08

8.15

9.70

Gearing

36.4%

46.9%

55.3%

59.7%

59.4%

C.5 The harvest years and investor returns

US$ million, fleet held flat

FY2032

FY2033

FY2034

EBITDA

2.57

2.51

2.46

Depreciation

(1.20)

(1.18)

(1.15)

Interest

(0.52)

(0.22)

(0.02)

Debt service — principal and interest

(1.25)

(0.61)

Debt service cover

2.06x

4.11x

Fully repaid

Replacement provision

(0.72)

(0.72)

(0.72)

Taxation

(0.25)

(0.33)

(0.39)

Free cash flow after tax

0.35

0.85

1.35

Investor share of distributions

0.23

0.55

0.88

FY2031 exit at year five

Enterprise value

Equity value

Proceeds

Multiple

Return

3.5x EBITDA

US$9.13m

US$3.73m

US$2.42m

0.55x

-11%

4.5x EBITDA

US$11.74m

US$6.34m

US$4.12m

0.94x

-1%

5.5x EBITDA

US$14.35m

US$8.95m

US$5.82m

1.32x

6%

6.5x EBITDA

US$16.96m

US$11.56m

US$7.51m

1.71x

11%

FY2034 exit at year eight

Enterprise value

Proceeds

Distributions

Total

Multiple

Return

4.0x EBITDA

US$9.84m

US$6.40m

US$1.66m

US$8.06m

1.83x

8%

5.0x EBITDA

US$12.30m

US$8.00m

US$1.66m

US$9.66m

2.20x

10%

6.0x EBITDA

US$14.76m

US$9.59m

US$1.66m

US$11.25m

2.56x

13%

7.0x EBITDA

US$17.22m

US$11.19m

US$1.66m

US$12.85m

2.92x

15%