This document (the “Document”) has been prepared by Sentinel Steel & Industrial Components Group (“Sentinel”, “SSIC Group” or the “Company”) to provide information to development-finance institutions, industrial-equity investors, strategic partners and commercial lenders (together, “Recipients”) in connection with the proposed development of a vertically integrated, scrap-based steel manufacturing and mining-consumables platform in Southern Africa (the “Project”), with a base-case capital programme of US$280 million within a funding envelope of US$220 million to US$350 million.
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, operations and prospects. These reflect management’s current expectations and are subject to substantial risks and uncertainties — including construction and ramp-up execution, scrap and input-price volatility, electricity cost and reliability, mining-cycle demand, import competition, and capital-market conditions, that may cause actual outcomes to differ materially. As a green-field, capital-intensive manufacturing programme, the Project carries a pronounced early-stage cash-flow profile (the “J-curve”) and a total capital requirement that exceeds the base-case figure once the full multi-site build is completed.
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 early-year losses inherent to a green-field 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, with tax at the 27% South African corporate rate (consistent with the sponsor).
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.