Mzansi Maize Milling — Appendices
Supporting reference material including a glossary of industry and finance terms, the financial projection methodology and key assumptions, and company contact information…
Section 11 · Business Plan
Appendices
Supporting reference material including a glossary of industry and finance terms, the financial projection methodology and key assumptions, and company contact information…
Appendix A: Glossary of Terms
| Term | Definition |
|---|---|
| B-BBEE | Broad-Based Black Economic Empowerment – SA transformation legislation |
| BFAP | Bureau for Food and Agricultural Policy |
| CAPEX | Capital Expenditure |
| DSCR | Debt Service Coverage Ratio – cash available for debt service / total debt service |
| EBITDA | Earnings Before Interest, Tax, Depreciation, and Amortisation |
| EIA | Environmental Impact Assessment |
| FSSC 22000 | Food Safety System Certification – international food safety standard |
| HACCP | Hazard Analysis and Critical Control Points |
| IRR | Internal Rate of Return |
| MOIC | Multiple on Invested Capital |
| NAMC | National Agricultural Marketing Council |
| NRCS | National Regulator for Compulsory Specifications |
| NPV | Net Present Value |
| SAFEX | South African Futures Exchange (JSE Commodities) |
| SAGIS | South African Grain Information Service |
| SAGMA | South African Grain Milling Association |
| TPD | Tonnes Per Day |
| WACC | Weighted Average Cost of Capital |
Appendix B: Assumptions & Methodology Notes
Financial Projection Methodology: All financial projections use a monthly cash flow model built in Microsoft Excel, with annual summaries presented in this document. Key methodology notes:
- Revenue is recognised on delivery of goods (point in time) in accordance with IFRS 15.
- Depreciation is calculated on a straight-line basis over useful lives: buildings 20 years, plant & equipment 10 years, vehicles 5 years.
- Tax is calculated at the prevailing corporate rate of 27% (reduced from 28% per the 2024 Budget announcement, effective 2026 tax year). The Year 1 tax credit reflects the assessed loss carried forward to Year 2.
- Working capital assumptions: inventory turnover of 15 days, debtor days of 35, and creditor days of 30.
- Inflation assumptions: CPI at 4.5–5.0% per annum; wage escalation at CPI + 1.0–1.5%; energy escalation at CPI + 6–8%.
- The WACC of 15.0% is derived from: cost of equity 20% (CAPM: Rf 9.5% + Beta 1.1 x ERP 6.5% + Small Cap Premium 3.5%), cost of debt 13.5% post-tax (Prime + 2.5%, tax shield at 27%), and a target D/E ratio of 60:40.
Appendix C: Contact Information
| Contact | Details |
|---|---|
| Company | Mzansi Maize Milling (Pty) Ltd |
| Address | Highveld Industrial Park, Mpumalanga Province, South Africa |
| Telephone | +27 (0) 13 XXX XXXX |
| info@mzansimaize.co.za | |
| Website | www.mzansimaize.co.za |
| Legal Advisors | [To be confirmed] |
| Auditors | [To be confirmed] |
| Lead Arranger | [To be confirmed] |
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