​Cautious Investment Analysis of a diamond mining project in Angola.

Key metrics for investors (three-year plan)

 

 

Return on Investment (ROI):

• Year 1: Projected profit – 29 million USD/€.
  ROI: - 163.6%  (with total investments of 11 million USD/€).

• Years 1-2: Projected profit – 99 million USD/€.
  ROI: increases to - 450.0% (with total investments of 18 million USD/€).

• Years 1-3: Projected profit may decrease to 171 million USD/€ due to depreciation and market risks.
  ROI: - 584.0% (with total investments of 25 million USD/€).

Average ROI over three years: - 194.0%.

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Net Profit:

• Year 1: Profit of 18 million USD/€ at the start of mining.

• Years 1-2: Production growth, profit of 79 million USD/€.

• Years 1-3: Profit may decrease to 141 million USD/€ due to technical risks and depreciation.

Payback Period:

• Expected payback period: 10 - 12 months due to rapid stabilization of production and profit.

Monthly Cash Flow:

• Year 1: - 1.2-1.5 million USD/€ per month.

• Year 2: - 5 million USD/€ per month.

• Year 3: - 5 million USD/€ per month, with a potential decrease due to technical challenges.

 

Three - Year Analysis:

• Total expenditures: - 23.3 million USD/€.

• Total revenue:        - 181.1 million USD/€.

• Total profit:             - 157.8 million USD/€.
  Thanks to modern technology, profits remain stable, including depreciation on equipment.

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Profit Distribution:

• Angola: - 40% (Angolan  law  requires  at  least  one-third  of extracted resources to belong  to      the state).

• Administrative Services in Angola: - 20%.

• Investors: - 16% (Net profit for  Investors over three years - 25.2 million USD/€, all terms are negotiable, and investors may become shareholders).

• Mining Company - 24%.

 

Technological Advantages of the Project:

• Year-round equipment availability, independent of seasonal conditions.

• Savings of at least - 5 million USD/€ due to modern, innovative technologies, eliminating the need to purchase heavy machinery.

• Scalability to increase production volumes and financial gains.

 

Recommendations:

• The project demonstrates high profitability potential with a strong ROI starting in the first year.

• Investment in technical upgrades by the third year is recommended to mitigate risks associated with equipment depreciation.

Comparison with a Project in Dubai:

• Diamond Mining in Angola: High ROI, rapid profitability (10-12 months).

• Construction Project in Dubai: High investments, longer payback period (3-4 years), more stable profit, but highly vulnerable to global financial crises.

 

We look forward to a successful collaboration!
Best regards,
Oleksander Bakhir.

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