The project involves buying rough diamonds from mining companies, cutting and polishing and final product beeing jewelry for engagement rings and ear rings.
We have developed and established the factory in Johannesburg, South Africa with our own resources. We now need an investment of US $10 million for 49% equity.
We are aiming to process 11520 carats yielding US $ 26.400 during the first year. This figure will have doubled by year five.
Net Profit after Tax for the first twelve months will be US $3.254 million. This figure will grow to US $ 10.547 million by the fith year.
R O I
Return on investment is 53% from first year of operation with a pay back period of three years.
This is a good project in that it is highly skilled work for a highly demanaded product(polished diamonds). The investor has an opportunity to be a part of a company that is set to grow exponentially in creating wealth. Also the opportunity lies in beeing an international player that will grow into exploiting the minerals of Africa.
With China having recently opened up as a strong market for polished diamonds the prospects are very good for our company.
Founding shareholders have already invested in developing the factory and now need working capital and position the business where it is supposed to grow.
Our competitive urge is that we are associated with diamond miners in a few African countries, which means we can source raw material cheaper. Most of the factories in India, Antwep, Dubai do not have diamonds in their countries.
Our competitive urge will be sustained by the fact that we will also get involved in mining operations that will ensure sustainable supply of rough diamonds.
The opportunity for us is to have access to funds that will enable us to access raw material that we could not access before due to lack of funding.
There is a lot of money to be made on polished diamonds. We will make money by adding value to rough diamonds.
Other players that have been in this industry tell you that they have been in it for over fourty years. Once you are in it you are unlikely to go for another type of business.
We have commited buyers for our polished diamonds.
We have reliable sources of raw material
We have a strong management team that includes experts from india
We are well located in an international diamond bourse
We have secured and well established systems of moving diamonds internationally
The US $10 million investment is needed as working capital and to add a few more equipment.
The investment can be done in three equal trenches within a six months period