Ferrovanta Mining Services — Projected Balance Sheet

The projected statement of financial position — the mining-fleet asset base, working capital, debt and equity, and the resulting capital structure over the plan.

Ferrovanta Mining Services Business PlanSection 15 › Projected Balance Sheet

Section 15 · Business Plan

Projected Balance Sheet

The projected statement of financial position — the mining-fleet asset base, working capital, debt and equity, and the resulting capital structure over the plan.

15.1 Statement of Financial Position, Years 1–7

The projected balance sheet reflects the deployment of the ZAR 9.5
billion capital raise into productive mining assets, the build-up of
operational working capital, and the gradual de-gearing of the capital
structure as accumulated retained earnings and depreciation cash flows
reduce dependence on debt. Total assets grow from ZAR 9.3 billion at the
end of Year 1 to approximately ZAR 18.7 billion at the end of Year
7.

ZAR Million Y1 Y2 Y3 Y4 Y5 Y6 Y7
ASSETS
Property, plant & equipment 6,820 8,650 8,910 8,690 8,375 8,008 7,615
Intangible assets 120 145 155 162 168 172 175
Deferred tax asset 45 78
Non-current assets 6,985 8,873 9,065 8,852 8,543 8,180 7,790
Inventories (parts, fuel) 220 350 520 700 880 1,025 1,170
Trade & other receivables 605 965 1,432 1,930 2,415 2,810 3,200
Cash & cash equivalents 1,500 830 1,015 1,520 2,490 3,920 6,520
Current assets 2,325 2,145 2,967 4,150 5,785 7,755 10,890
TOTAL ASSETS 9,310 11,018 12,032 13,002 14,328 15,935 18,680
EQUITY & LIABILITIES
Share capital 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Retained earnings (165) (121) 530 1,856 3,242 5,295 8,087
Total Equity 2,835 2,879 3,530 4,856 6,242 8,295 11,087
Senior debt 3,200 3,000 2,400 1,800 1,200 600 0
Mezzanine 1,000 1,000 1,000 1,000 800 500 200
Equipment finance leases 1,950 2,800 2,650 2,200 1,750 1,250 750
Deferred tax liability 210 385 555 725 895
Non-current liabilities 6,150 6,800 6,260 5,385 4,305 3,075 1,845
Trade & other payables 320 1,335 2,235 2,755 3,775 4,560 5,740
Current portion debt
Tax payable 5 4 7 6 6 5 8
Current liabilities 325 1,339 2,242 2,761 3,781 4,565 5,748
TOTAL EQUITY & LIABILITIES 9,310 11,018 12,032 13,002 14,328 15,935 18,680
KEY RATIOS
Net Debt / EBITDA (x) 7.2 5.6 3.1 1.9 1.0 0.0 (0.8)
Debt-to-Equity (x) 2.17 2.36 1.78 1.11 0.60 0.28 0.09
Current Ratio (x) 7.2 1.6 1.3 1.5 1.5 1.7 1.9
Return on Equity (%) (5.8%) 1.5% 18.4% 27.3% 31.8% 32.0% 30.6%
Return on Assets (%) (1.8%) 0.4% 5.4% 10.2% 13.9% 16.6% 18.2%

Notes to the balance sheet: (a) PP&E movements reflect fleet
additions per the build-up schedule less depreciation; (b) Senior debt
amortises in equal annual instalments from Year 3 onward following a
Year 2 grace period; (c) Mezzanine includes accrued payment-in-kind
interest deferred until Year 5; (d) Current liabilities reflect a 45-day
average creditor payment cycle; (e) Working capital growth is funded
from operating cash flows from Year 2 onward.

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 Ferrovanta Mining Services (Pty) Ltd.