TitanForge — Projected Profit & Loss
The projected profit and loss and the revenue, cost and profitability trajectory underpinning TitanForge.
Section 21 · Business Plan
Projected Profit & Loss
The projected profit and loss and the revenue, cost and profitability trajectory underpinning TitanForge.
The ten-year projected income statement below reflects sponsor
revenue and EBITDA with the independently derived charges beneath. The
sponsor’s own net profit line is shown alongside for transparency.
| R billion | Y1 | Y2 | Y3 | Y4 | Y5 | Y6 | Y7 | Y8 | Y9 | Y10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 22.0 | 27.0 | 35.0 | 47.0 | 63.0 | 82.0 | 104.0 | 128.0 | 151.0 | 175.0 |
| EBITDA | 5.2 | 6.8 | 9.3 | 13.5 | 19.8 | 27.0 | 35.2 | 43.6 | 51.8 | 58.5 |
| EBITDA margin | 24% | 25% | 27% | 29% | 31% | 33% | 34% | 34% | 34% | 33% |
| Depreciation | (1.9) | (2.6) | (3.8) | (5.0) | (5.9) | (6.6) | (7.0) | (7.5) | (8.0) | (8.6) |
| EBIT | 3.3 | 4.2 | 5.5 | 8.5 | 13.9 | 20.4 | 28.2 | 36.1 | 43.8 | 49.9 |
| Net interest | (0.9) | (1.6) | (2.6) | (3.4) | (3.6) | (3.5) | (2.9) | (2.4) | (1.9) | (1.4) |
| Profit before tax | 2.4 | 2.6 | 3.0 | 5.2 | 10.3 | 17.0 | 25.3 | 33.7 | 41.9 | 48.5 |
| Tax (27%) | (0.6) | (0.7) | (0.8) | (1.4) | (2.8) | (4.6) | (6.8) | (9.1) | (11.3) | (13.1) |
| Net profit (independent) | 1.8 | 1.9 | 2.2 | 3.8 | 7.5 | 12.4 | 18.4 | 24.6 | 30.6 | 35.4 |
| Net profit (sponsor) | 1.5 | 2.4 | 4.1 | 7.0 | 10.8 | 15.5 | 21.2 | 27.5 | 33.4 | 39.0 |
| Variance | 0.3 | -0.5 | -1.9 | -3.2 | -3.3 | -3.1 | -2.8 | -2.9 | -2.8 | -3.6 |
Independent net profit runs slightly ahead of the sponsor in Years
1–2 (the sponsor appears to assume heavier early charges than the phased
programme actually generates) and then falls progressively behind from
Year 3 as the full depreciation of the deployed programme and cash
interest on peak debt are recognised. Cumulative independent earnings of
R138.6bn against the sponsor’s R162.4bn is a 15% overstatement —
material for any investor underwriting off the sponsor deck, though it
does not change the investment conclusion.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of TitanForge Resources & Infrastructure Holdings.