Bacterial wilt

Disease caused by Ralstonia solanacearum, the most serious soil-borne threat to ginger production. Persists in soil for years and has no effective in-field treatment once established.

Blended price

Total revenue divided by total marketable volume, combining fresh, certified seed and off-grade sales.

CFADS

Cash flow available for debt service. EBITDA less tax, working capital movement and maintenance capital expenditure.

Cash conversion cycle

Debtor days plus inventory days less creditor days. 69 days at FY2031.

Certified seed rhizome

Ginger rhizome grown in a dedicated block, laboratory-tested against specified pathogens, and supplied with its indexing record.

Curing

Post-harvest process that sets the rhizome skin and materially extends storage and shelf life. The step on which the freshness proposition depends.

DSCR

Debt service cover ratio. CFADS divided by interest and capital repayments falling due in the period.

EBITDA

Earnings before interest, tax, depreciation and amortisation.

First Schedule

The First Schedule to the South African Income Tax Act, governing the taxation of farming operations, including the deductibility of development expenditure subject to a farming income limitation.

Fusarium

Fungal pathogen causing yellows and rhizome rot in ginger. Soil-borne and persistent.

Import parity

The price at which imported ginger is available in the domestic market, comprising FOB origin cost, freight, duty, port and importer margin, plus inland transport.

Indexing

Laboratory testing of a planting material lot against specified pathogens, with the result recorded and supplied to the buyer.

MOIC

Multiple of invested capital. Investor proceeds at exit divided by capital committed.

Marketable share

The proportion of harvested weight meeting fresh grade specification after wash, grade and cure. Assumed at 88%.

Nematode

Microscopic soil-dwelling roundworm. Root-knot nematodes damage ginger rhizome directly and open pathways for bacterial and fungal infection.

Off-grade

Harvested rhizome not meeting fresh grade, sold to processing at R7.80 a kilogram at FY2031.

Rhizome

The underground stem that is both the harvested product and the planting material. The dual role is the defining economic feature of this crop.

Roguing

Removing and destroying infected plants immediately on detection, to contain rather than treat a disease incident.

Rotation footprint

The total land the company must control to plant a given area, given that ginger cannot return to the same ground for approximately 4.5 years. 504 hectares at FY2031 to plant 112.

Seasonal production credit facility

A revolving facility funding the crop between planting in November and collection from July. Peaks at R26.1m in June of FY2031 and is nil at every year end.

Section 12B

Provision of the South African Income Tax Act allowing accelerated capital allowances on qualifying farming assets at 50% / 30% / 20% over three years.

Seed block

The dedicated area planted and managed to produce certified planting material rather than food. 24 hectares at FY2031.

WACC

Weighted average cost of capital. 17.5% in the base case.