TOGETHER IN AFRICA FOR A LEADING ROLE IN GEOSCIENCE

Neale BaartjesManagement Consultant: Resources

11 JANUARY 2011

Financing Projects in Industry

TO THE READER:

This document can best be read with the

list of funders also found on the

EcoPartners websiteEcoPartners website

www.ecopartners.co.za

EcoPartners

• Management Consulting -Mineral Resources

-Environment

-Quality Systems

• Authorisations

• Strategies

• Training and Mentoring

Start with the end in mind.

End Goal

Need a job

Be a business owner

ListedIPO

Sell Business

Need a job

•What am I Selling / Developing?

•Who wants it?

•How much will they pay for it?

OVERVIEW OF YOUR IDEA

•How do I get it into their hands?

•What can go wrong?

•What are my fixes?

•Do I need other people to help me?

Business Plan

OutputNo

Activity

Target

Generation

Pre-

Feasibility

Feasibility Commissioning Mining Expansion Mine

Closure

Revenue

0

8 STAGES IN THE LIFE OF A DEPOSIT

Ou

tpu

t

Growth

Established

Expansion

Exit

Decline

LIFE CYCLE OF A BUSINESS

0

Ou

tpu

t

Seed Start-Up

Growth

Ou

tpu

t

LIFE CYCLE OF A BUSINESS

GROWTHProfitsPartnersShareholdersDevelopment FundsBanksHigh risk VC

EXPANSIONProfitsShareholdersDevelopment FundsBanksVCUnions/Government

DECLINEOwnersSuppliersShareholdersVCGovernment

0

Ou

tpu

t

SEEDOwn FFFGrant FundingDevelopment Funds

START-UPOwn FFFGrant FundingCustomersSuppliersRegional Agencies

FUNDING OPTIONS

FFF

Owner

Grants

Government

Interest

FFF

0% 100%50%

Angel

ESOP’s

VC

Partnerships

Banks

SOURCES OF FUNDING

Short Term Long Term Fixed Interest

Floating Interest

Percent of Profits

Share of Company

Owner × ×

Family, Fools, Friends

× × × × ×

Suppliers × ×Suppliers × ×

Commercial Banks

× × ×

DevelopmentBanks

× × × ×

Venture Capital

× ×

Government Sources

×

10 COMMON MISTAKES MADE IN FUNDRAISING

1. Poor preparation and poor support (team/material)

2. Approaching the wrong investors

3. Not knowing the basic answers

4. Approaching just one investor4. Approaching just one investor

5. Not going to see the investor

6. Asking only when you need

7. Size of the project/property

8. Thinking that it will be easy

9. Vague disclosure

10.No sales pitch

REGIONAL AGENCIES

Gauteng Economic Development Agency (GEDA)

011 833 8750

info@geda.co.za

www.geda.co.za

Ithala Bank (Ithala)

031 907 8911

clientservices@ithala.co.za

www.ithala.co.za

(WESGRO)

021 487 8600

info@wesgro.co.za

www.wesgro.co.za

Eastern Cape Development Corporation (ECDC)

043 704 5600

www.ecdc.co.za

DEVELOPMENT BANKS

Industrial Development Corporation (IDC)086 069 3888callcentre@idc.co.zawww.idc.co.za

Development Bank of South Africa (DBSA)011 313 3911emiled@dbsa.org www.dbsa.org

VENTURE CAPITALISTS

Basileus Capital

021 431 1000info@basileuscapital.comwww.basileuscapital.com

Kwanda Capital

021 4811066info@kwandacapital.comwww. kwandacapital.com

IDC VC Capital

011 269 3731callcentre@idc.co.zawww. idc.co.za

Musa Capital

011 771 6300germann@musacapital.comwww.Musacapital.com

UNIONS

Kopana Ke Matla Investment

011 684 1112

tammy@kopanokkm.co.za

www.kopanokkm.co.za

NUMSA Investment Company (NIC)

011 783-3578

info@numsainvestment.co.za

www.numsainvestment.co.za

Mineworkers Investment Company (MIC)

011 484 6814

info@mic.co.za

www.mic.co.za

Nehawu Investment Holdings (NIH)

011 883 8605

info@niholdings.co.za

www.mic.co.za

GOVERNMENT

National Empowerment Fund

011 305 8000

info@nefcorp.co.za

www.nefcorp.co.za

Khula Finance Enterprise

012 394 5560

helpline@khula.org.za

www.khula.org.za

Small Enterprise Development Agency (SEDA)

012 441 1000

info@seda.org.za

www.seda.org.za

Neale Baartjeswww.ecopartners.co.za

Environmental Economics Resource EconomicsEnvironmental Economics Resource EconomicsEnvironmental Authorisation Cost Benefit AnalysisCleaner Production Commodity Strategy