FerroGlobe Resources Group Business Plan › Section 1 › Executive Summary

FerroGlobe Resources Group (“FGRG”) is a vertically integrated steel,
raw-materials trading, and industrial-logistics platform headquartered
in Johannesburg, South Africa, with planned operations spanning
Sub-Saharan Africa, the Middle East, and South Asia. The Company is
being established to capture the structural arbitrage between low-cost
Asian steel supply and rapidly growing African demand — a thesis
grounded in three durable trends: a multi-decade African infrastructure
build-out, a persistent regional supply gap exceeding 70% of demand, and
accelerating consolidation among diversified global merchants.

Strategic Rationale

Africa imports more than 70% of its steel demand from outside the
continent, principally from China, India, and Türkiye. The Africa steel
market reached approximately 39.24 million tonnes in 2025 and is
forecast to grow at a 3.4% compound annual growth rate to 54.82 million
tonnes by 2035. Within this, South Africa is the largest steel market on
the continent, valued at USD 6.82 billion in 2024 and forecast to reach
USD 9.48 billion by 2033. Yet domestic primary capacity is
consolidating: ArcelorMittal South Africa announced wind-down of its
long-products business in January 2025, removing approximately 1.0
million tonnes of capacity from the local market and creating an
unprecedented opening for a well-capitalised new entrant.

FGRG’s business model mirrors the proven architecture of leading
global steel merchants such as Duferco Participations Holding SA —
combining commodity trading, industrial processing, shipping logistics,
and energy integration into a single platform. This diversified
structure smooths the steel cycle, captures margin at multiple points
along the value chain, and creates defensive moats through long-term
offtake relationships and asset-backed capability.

Capital Plan & Use of Proceeds

FGRG is seeking a total capital raise of USD 750 million, structured
across three tranches over 36 months: equity of USD 225 million from
founders and strategic partners, senior project and corporate debt of
USD 300 million from development finance institutions and commercial
banks, mezzanine and quasi-equity of USD 75 million, and trade-finance
lines of USD 150 million from international trade banks. Funds will be
deployed across working capital ($180M), trading infrastructure ($35M),
service-centre acquisitions ($75M), a brownfield rolling-mill
acquisition ($140M), a 1-million-tonne greenfield mill ($220M), energy
and solar integration ($60M), and logistics fleet ($25M), with $15M held
in reserves and contingency.

Financial Highlights

The base-case operating plan projects revenue of USD 192 million in
Year 1 ramping to USD 4.3 billion by Year 7. EBITDA scales from USD 14
million (7.3% margin) in Year 1 to USD 870 million (20.2% margin) by
Year 7, reflecting the progressive shift from pure trading margins
(2–8%) to blended trading-and-processing margins (8–20%). Free cash flow
turns positive in Year 4. The plan delivers an equity IRR of 27.5% and a
project IRR of 19.8% over the 7-year hold, with a payback period of
approximately 4.6 years.

Why Now

• Structural supply gap: Africa imports more than 70% of steel
  demand and produced only 23 Mt against demand approaching 40 Mt in
  2025.
• Capacity withdrawal: ArcelorMittal SA’s January 2025 wind-down of
  Longs Business removes ~1 Mt of domestic supply, creating a serviceable
  opening.
• Demand catalysts: South Africa alone has a USD 168 billion
  public-sector infrastructure pipeline through 2030, including energy,
  transport, water and housing.
• Geopolitical tailwind: The IDC–Hebei Iron & Steel Group MoU
  of USD 4.5 billion validates investor appetite for SA steel value-chain
  investment.
• Trade-corridor advantage: Lusaka, Dubai and Mumbai positioning
  enables low-cost arbitrage across the Africa–Asia–Middle East
  triangle.

Investment Thesis

FGRG offers institutional investors a rare opportunity to back a
high-cashflow trading engine with an embedded industrial upside option.
The trading franchise generates near-term liquidity (positive operating
cash flow by Year 2), funding the gradual deployment into asset-heavy
production. Vertical integration captures 8–20% processing margin in
addition to 2–8% trading margin, materially expanding return on capital.
The strategy is modelled on proven global operators and underpinned by
management with extensive emerging-markets commodity experience.

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.