Magalies Quarry Business Plan — Problem, Customer Need and Value Proposition
Why aggregate is bought on delivered cost, and how proximity to the buyer creates the value proposition.
Section 4 of 26
Problem, Customer Need and Value Proposition
Jump to section
- 1. Executive Summary
- 2. Investment Thesis
- 3. Company and Business Overview
- 4. Problem, Customer Need and Value Proposition
- 5. Industry Analysis
- 6. Market Analysis
- 7. Competitive Landscape
- 8. Products and Services
- 9. Business Model and Operating Model
- 10. Go-to-Market and Commercial Strategy
- 11. Management and Organisation
- 12. Regulatory, Licensing and Fiscal Framework
- 13. ESG, Rehabilitation and Community Impact
- 14. Strategic Plan
- 15. SWOT and Strategic Implications
- 16. Risk Analysis
- 17. Implementation Roadmap
- 18. Financial Plan and Projections
- 19. Funding Requirement and Structure
- 20. Investment Case, Valuation and Returns
- 21. Scenario and Sensitivity Analysis
- 22. KPIs and Management Dashboard
- 23. Conclusion and Recommendation
- A. Appendix A: Projected Income Statement
- B. Appendix B: Projected Balance Sheet
- C. Appendix C: Projected Cash Flow
Corridor buyers face rising delivered costs and tightening sand supply; Magalies offers specification-compliant product, close to site, at a defensible delivered price.
The customer problem
- Delivered cost, not quarry price, drives customer economics. For a buyer 40–80 km from a distant quarry, haulage can add R40–R80/t, dwarfing small differences in ex-quarry price.
- Natural sand is getting harder to source. Regulatory action against unlicensed and environmentally damaging river-sand extraction is reducing reliable supply of natural sand for concrete and plaster.
- Quality and consistency matter. Ready-mix and road contractors need consistent grading and compliant materials; variable informal supply raises rejection and rework risk.
The Magalies solution
|
Customer problem |
Magalies solution |
Value created |
How it is monetised |
|---|---|---|---|
|
High delivered cost from distant quarries |
In-catchment supply within economic haulage distance |
R30–R60/t lower delivered cost vs distant supply |
Sustainable ex-quarry price with volume |
|
Shrinking, non-compliant river-sand supply |
Consistent manufactured sand from hard rock |
Security of compliant sand supply |
Premium-to-dust pricing on ~20% of volume |
|
Variable quality and grading |
On-site laboratory and QA to SANS grades |
Lower rejection/rework for contractors |
Accredited-supplier status and repeat orders |
|
Fragmented single-product suppliers |
Full stone + sand + G-material range |
One-stop supply, fewer suppliers to manage |
Cross-sell across product lines |