SStarTrade Tech, Inc Responsive image

Financial plan

1. Cash Flow Plan

Cash flow plan (ths USD) 2017 2018 2019 2020 2021 2022
Revenues from sales 0.00 5,854.65 28,766.86 60,909.44 144,156.26 330,123.62
Expenses for production 0.00 -589.19 -2,946.14 -5,892.38 -16,695.00 -33,390.00
Processing costs 0.00 -702.21 -3,511.28 -7.022.68 -19,897.50 -39,795.00
General, administrative and commercial expenses -640.00 -1,225.47 -3,516.69 -6,730.94 -15,055.63 -33,652.36
Taxes and fees 0.00 -402.20 -1,967.80 -4,147.91 -9,304.64 -20,557.04
EBITDA -640.00 2,935.58 16,824.95 37,115.53 83,203.49 202,729.22
Depreciation 0.00 -374.06 -2,066.05 -4,377.49 -7,033.86 -9,398.14
EBIT -640.00 2,561.52 14,758.90 32,738.04 76,169.63 193,331.08
Income Taxes 0.00 -512.30 -2,951.78 -6,547.61 -15,233.93 -38,666.22
Net profit -640.00 2,049.22 11,807.12 26,190.43 60,935.70 154,664.86
Dividends 0.00 0.00 0.00 -1,309.52 -3,046.79 -7,733.24
+ Depreciation 0.00 374.06 2,066.05 4,377.49 7,033.86 9,398.14
Cash flow from operating activities -640.00 2,423.28 13,873.17 29,258.40 64,922.77 156,329.76
Capital expenditures -7,106.53 -25,373.90 -31,699.97 -32,941.16 -23,642.85 0.00
Cash flow from Investment activity -7,106.53 -25,373.90 -31,699.97 -32,941.16 -23,642.85 0.00
Funding received 8,000.00 28,000.00 20,000.00 4,000.00 0.00 0.00
Financing canceled 0.00 0.00 0.00 0.00 0.00 -60,000.00
Cash flow from financial activities 8,000.00 28,000.00 20,000.00 4,000.00 0.00 -60,000.00
Net cash flow 253.47 202.82 2,173.20 317.24 41,279.92 96,329.76
Cumulative 253.47 456.29 2,629.49 2,946.73 44,226.65 140,556.41

Note: this financial model does not include revenues and operating costs for the operation of a small hydroelectric power station.

2. Profitability and Efficiency of Investments

Profitability 2017 2018 2019 2020 2021 2022
EBITDA / Revenues 0% 50% 58% 61% 58% 61%
EBIT / Revenues 0% 44% 51% 54% 53% 59%
Net profit / Revenues 0% 35% 41% 43% 42% 47%
Estimation of investment efficiency (ths USD)
Period 0 1 2 3 4 5
Free cash flow -7,746.53 -22,950.62 -17,826.80 -2,373.24 44,326.71 164,063.00
Cumulative -7,746.53 -30,697.15 -48,523.95 -50,897.19 -6,570.48 157,492.52
Discounted free cash flow -7,746.53 -19,957.86 -13,478.84 -1,560.41 25,346.01 81,572.12
Cumulative -7,746.53 -27,704.39 -41,183.23 -42,743.64 -17,397.63 64,174.49

Discount rate % 15
NPV тыс. USD 64,174.49
IRR % 29

3. General Need for Financing

Thousand USD 2017 2018 2019 2020 2021 2022
Operating expenses -640.00 -3,029.17 -12,925.89 -26,193.61 -66,882.06 -145,503.58
Conducting geological prospecting works -1,732.58 -5,263.16 -4,437.24 -3,823.67 0.00 0.00
Construction of quarries and mining machinery -2,583.65 -4,274.73 -4,760.00 -5,138.22 0.00 0.00
Industrial construction objects gold-processing complex -730.00 -5,653.60 -11,296.55 -18,277.00 -23,642.85 0.00
Objects of housing and civil construction appointments -143.00 -1,287.34 -2,716.00 -2,554.00 0.00 0.00
Small hydroelectric power station -864.0 -7,326.82 -6,865.32 -3,148.27 0.00 0.00
External transport -782.60 -1,158.25 -1,214.86 0.00 0.00 0.00
Research and Development -270.00 -410.00 -410.00 0.00 0.00 0.00
Need for financing (thousand USD) -7,746.53 -28,403.07 -44,625.86 -59,134.77 -90,524.91 -145,503.58
Need for financing (million RUB) -428.38 -1,511.04 -2,838.20 -3,808.28 -5,630.65 -9,254.03

The total funding requirement for 2017-2022 is USD 375,938.72 thousand or 23,470.58 million RUB.

4. Financing Parameters

Total amount of financing Thousand USD 60,000.00
Total amount of financing Million RUB 3,461.60
Tranches in April, 2017, 2018, 2019, 2020
Interest rate % 5
Recipient of financing LLC Favorit Centre
Term of financing years 5
Refund of financing once in 2022
Amount of interest paid Thousand USD 11,000.00
Amount of interest paid Million RUB 693.48
The amount of refinancing (at the expense of the Company's net profit) Thousand USD 64,283.98
Thousand USD 2017 2018 2019 2020 2021 2022
Debt at the beginning of the period 0.00 8,000.00 36,000.00 56,000.00 60,000.00 60,000.00
Funding received 8,000.00 28,000.00 20,000.00 4,000.00 0.00 0.00
Financing canceled 0.00 0.00 0.00 0.00 0.00 -60,000.00
Arrears at the end of the period 8,000.00 36,000.00 56,000.00 60,000.00 60,000.00 0.00
Thousand USD 2017 2018 2019 2020 2021 2022
Interest accrued 0.00 400.00 1,800.00 2,800.00 3,000.00 3,000.00
Interest accrued (million RUB) 0.00 21.28 114.48 180.32 186.60 190.80
Interest paid 0.00 0.00 0.00 0.00 0.00 -11,000.00
Thousand USD 2017 2018 2019 2020 2021 2022
Refinancing 0.00 0.00 -11,699.97 -28,941.16 -23,642.85 0.00

5. Assumptions and Forecasts

5.1 Resource Base.

Geological reserves of gold tons 177.53
The average content of gold in the ore (in the bowels) g / t 3.13
Ore reserves in the subsoil tons 56,718,212
Ore reserves taking into account dilution during mining tons 63,774,066
The average gold content of the mined ore g / t 2.78
Coefficient of loss of gold during mining % 8.2
Ore processing per year tons 3,500,000
Coefficient of metal recovery during processing % 87.2

5.2 Macroeconomic Indicators.

2017 2018 2019 2020 2021 2022
The price of gold USD / oz 1210 1214 1193 1263 1055 1208
Book price of the Bank of Russia RUB / g 2152 2077 2440 2615 2110 2470
The forecast of the ruble exchange rate RUB/USD 55.3 53.2 63.6 64.4 62.2 63.6

6. Specific Expenditures on Extraction and Production

Cash cost of extraction of 1 ton of ore (USD) 9.54
Fuel and energy 0.46
Remuneration of labor and unified social tax 0.48
Maintenance of the equipment 0.78
Auxiliary materials 1.59
Transportation of mountain weight 5.78
Other production expenses 0.45

Cash cost of processing 1 ton of ore (USD) 11.37
Fuel, energy and water on the technology purposes 1.14
Production content and operation of equipment 0.88
Remuneration of labor and unified social tax 0.94
Reagents 2.98
Concentrate transportation costs 2.89
Expenses for refining 0.62
General production expenses 1.38
Other production costs 0.54
General, administrative and commercial expenses
Commercial expenses,% of revenue 10
Office, management (per year, thousand USD) 640.00

7. Tax Rates

Income Taxes % 20
The tax on extraction of minerals (NDPI) % 6
Property tax % 1.10
Other taxes and fees % 1.50

8. Depreciation Periods

Mining-transport equipment and constructions years 20
Gold-processing complex years 10
Objects of housing and civil appointments years 20
External transport years 10
Small hydroelectric power station years 10

9. Depreciation Periods

2017 2018 2019 2020 2021 2022
Processing volume ths tons 0.00 61.76 308.82 617.65 1,750.00 3,500.00
Production of gold in ingots tons 0.00 0.15 0.75 1.50 4.25 8.50
Production of gold in ingots koz tr 0.00 4,823 24,113 48,226 136,641 273,281
Выручка от реализации ths USD 0.00 5,854.65 28,766.86 60,909.44 144,156.26 330,123.62

10. Capital Expenditures

Thousand USD 2017 2018 2019 2020 2021 2022
Geological exploration works 1,732.58 5,263.16 4,437.24 3,823.67 0.00 0.00
Construction of quarries and mining machinery 2,583.65 4,274.73 4,760.00 5,138.22 0.00 0.00
Industrial construction objects of gold-processing complex 730.00 5,653.60 11,296.55 18,277.00 23,642.85 0.00
Objects of housing and civil appointments 143.00 1,287.34 2,716.00 2,554.00 0.00 0.00
Small hydroelectric power station 864.70 7,326.82 6,865.32 3,148.27 0.00 0.00
External transport 782.60 1,158.25 1,214.86 0.00 0.00 0.00
Research and development 270.00 410.00 410.00 0.00 0.00 0.00
Total 7,106.53 25,373.90 31,699.97 32,941.16 23,642.85 0.00

11. Depreciation

Thousand USD 2017 2018 2019 2020 2021 2022
Mining-transport equipment and constructions 0.00 -129.18 -342.92 -580.92 -837.83 -837.83
Gold-processing complex 0.00 -73.00 -638.36 -1,768.00 -3 595.72 -5,960.00
Objects of housing and civil appointments 0.00 -7.15 -71.52 -207.32 -464.23 -464.23
External transport 0.00 -78.26 -194.10 -315.57 -315.57 -315.57
Small hydroelectric power station 0.00 -86.47 -819.15 -1,505.68 -1,820.51 -1,820.51
Total 0.00 -374.06 -2,066.05 -4,377.49 -7,033.86 -9,398.14

12. Taxes and Fees

Thousand USD 2017 2018 2019 2020 2021 2022
Mineral extraction tax 0,00 -338,27 -1 660,10 -3 524,49 -8 280,83 -19 070,32
Property tax 0,00 -56,14 -268,74 -545,51 -803,06 -1 045,22
Other taxes and fees (ecology) 0,00 -7,79 -38,96 -77,91 -220,75 -441,50
Overall 0,00 -402,20 -1 967,80 -4 147,91 -9 304,64 -20 557,04