Golden Spike Exports

Umar Raheel

Sulman Ali Saif

Business Overview

• Metal Scrap exporting brokers

• Offices in 3 major cities in Pakistan

• Business philosophy revolves around 3P concept

Operations Cycle

Golden Spike Exports

Canadian Purchasing Operations

Pakistan Selling Operations

Scrap Metal Purchases from

Suppliers

Scrap Metal Sales to the Clients

Revenues

Step 1

Step 2 Step 3 Step 4

Step 5

Logistics & Delivery

International Shipping Route

Logistics & Delivery

Freight Delivery in Pakistan

Current Market and Projections

Customers & Competition

CustomersCompetition

Capital Budget & Gross Margin

Capital Budget

Buildings $150,000

Equipment 42,000

Vehicle 20,000

Trucks 80,000

Furniture 3,000

Total $295,000

Our Margin on 40 ft. container

Selling Price = $10,000COGS = $ 6,500

Gross Margin = $ 3,500

Gross Margin % = 35%

Profitability & Return on Investment

ROI 32%

IRR 40%

Questions ????

Cash Flows

Break Even Analysis

Base Case containers per year

75 113 169 228 285

Breakeven containers per year

97 93 87 80 73

Net Payback & NPV

Gross Payback

Net Payback NPV

$2,847,577 $2,147,577 $ 181,038

Risk & Critical Factors

Risk Factor

• Competitors• Weather• Shipping• Political• Safety

Critical Factors

• Metal Rates• Currency

Fluctuations• Number of

Containers• Buyers

Sensitivity Analysis & Feasibility

Base case scenario

Base Case displays an above average IRR, therefore is a go