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Market Analysis
High Demand
Besides the booming metrology industry, global demand for especially black granite is on the rise with the building, construction and decor design sectors being the other major segments that are driving the demand to higher levels.
Pricing Trends
The market for granite presents a stable pricing culture, with projections indicating gradual increases in the near future.
Competitors Analysis
An assessment of the competitor's landscape shows profitable margins with our prices placing us competitively and beyond. None of our competitors match the technical requirements, resulting in excellent product pricing for our rocks/stones/blocks.
Equipment & Team
Cost Projections
01
CPR Report
The initial investment for core drillings is projected at €200,000 to cover equipment rental, drilling, testing, and workforce allocation.
02
Quarry Investment
Quarry investment is projected to be €2 Million to cover mine setup, major equipment aquisition and quarry and production development and running costs for 1st year.
03
Costs Variation
The cost analysis factored in the expected industry fluctuations for materials, labor, and fuel.
Risks & Mitigations
1
Granite quality is not good enough
The question of whether there is granite or isn't is already known because we can see it from the surface. The question should be asked is: is it good enough to start a open cast quarry?
Mitigation
-
When we arrive at the selected site, we explore physically the nature of the deposit, and how vegetation, hydrology and infrastructure conform. We check the surface and look for cracks, veining, water drainage, color differentiation and when found there is none -
A very strong evidence of high quality. -
We took samples of granite in different areas throughout the deposit and we sent those samples to accredited test labs in Germany - The results are very good.
Such evidence combined with our 40 years of experience in this industry brought us to the understanding that there is minor chance for doubting the quality of this dolerite deposit.
2
Landowner not co-operative
Landowner is not cooparating and doing troubles using his premises.
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Mitigation
-
The current premises belongs to the DALRAD and there for it's a quicker and much easier proccess.
-
We have a very strong relationship with municipality and community. Both are very supportive and made it clear to us and the landowner that they are looking forward for this project to happen.
3
Core drilling negative
CPR report is negative and the formations are not as yield returning as assessed.
Mitigation
Besides our thorough assessments that were made and ensured by our world known geologist and partner Dr. Michael Diehl, in the unlikely case the result will be negative - we will sell our Mining Permit and to recover costs in the least.
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Phone
+27 83 517 9003