This document (the “Document”) has been prepared by Neoterra Energy & Chemicals Group (“Neoterra”, “NEC Group” or the “Company”) to provide information to development-finance institutions, infrastructure funds, strategic energy partners, export credit agencies and commercial lenders (together, “Recipients”) in connection with the proposed multi-phase development of a vertically integrated energy, fuels and chemicals platform in Southern Africa (the “Project”), with a base-case capital programme of US$750 million within a broader multi-phase envelope of US$500 million to US$1.2 billion.
It is furnished on a strictly private and confidential basis and may not be reproduced, redistributed or passed to any other person, in whole or in part, without the prior written consent of the Company.
Forward-looking statements
This Document contains forward-looking statements across a ten-year horizon relating to the Company’s construction programme, feedstock supply, operations and prospects. These reflect management’s current expectations and are subject to substantial risks and uncertainties, including gas-feedstock availability and price, gas-to-liquids and process-technology execution, construction and cost risk, fuel and chemical commodity cycles, regulatory, environmental and energy-transition factors, and capital-market conditions, that may cause actual outcomes to differ materially. As a green-field, capital-intensive process-industry programme, the Project carries a pronounced early-stage cash-flow profile (the “J-curve”), a long payback, and a total capital requirement that materially exceeds the base-case figure once the full integrated complex is built.
Independent re-underwriting
NoteHow to read the numbers in this Document
Management’s sponsor projections for revenue and EBITDA across the ten-year model have been preserved. All figures below EBITDA, depreciation, financing costs, taxation and net profit, together with the capital, cash-flow, coverage and returns analysis, have been independently derived on a conservative basis. The sponsor provides a net-profit line only for the stabilised Year-10 position; the full ten-year path (including the substantial early-year losses inherent to a process-industry build) is re-underwritten here. Where this analysis differs from, or adds to, the sponsor’s summary figures, particularly on the total capital requirement and the funding of the J-curve, the differences are surfaced explicitly in the callout boxes. Figures are in US dollars; the re-underwriting applies a 27% tax rate (the current South African corporate rate; the sponsor assumed 28%).
No representation or warranty, express or implied, is given as to the accuracy or completeness of the information contained herein. Recipients should conduct their own independent evaluation and due diligence and obtain their own professional advice. This Document does not constitute investment, legal, tax or financial advice, nor an offer of securities.