1.

0 Executive Summary

The purpose of this business plan is to raise $600,000 for the expansion and development of a private
gold mine business while showcasing the expected financials and operations over the next three years.
Essay 12. (“the mine”) is a Gweru based mine that mines gold from prosepected mines within Zimbabwe.
The mine was founded and owned by Elson Mubaiwa.

1.1 Products and Services

As stated above, Elson Mubaiwa intends to prospect and acquire on properties known to have gold
deposits. The business will then develop gold mines on these properties with the intent to extract, smelt,
and package the gold into bars for sale onto the open market. The capita is required for sourcing the
equipment needed to operate a moderate sized gold mining operation. It should be noted that at all times,
the business will comply with all applicable , state, and local laws in order to ensure the safety of all
employees working at the Gold Mine site. The third section of the business plan will further describe the
gold mining operations conducted by Essay 12.

1.2 The Financing

At this time, Mr.Elson Mubaiwa is seeking $600,000 of private funds for the development of Essay 12
gold mining operations. Tentatively,he is seeking to sell a 40% interest in the business in exchange for
the capital sought in this business plan.

1.3 Mission Statement

Elson Mubaiwa’s mission is to cost effectively extract gold from known precious metal deposits with the
intent to sell the refined precious metal to the open market.

1.4 Mangement Team

The Company was founded by Elson Mubaiwa. Mr.Mubaiwa has more than 10 years of gold mining
experience. Through his expertise, he has beennable to bring the operations of the business to
profitability within its first year of operations.

1.5 Sales Forecasts

Elson Mubaiwa expects a strong rate of growth when the required equipment has been acquired. Below
are the expected financials over the next three years.
1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the next three years of operation.
As the business becomes profitable he will make substantial reinvestments into gold mining equipment.
Additionally, the Company may seek to acquire additional prospects on proven grounds for gold mining.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Essay 12. The is a licensed gold mine in Gweru.

2.2 Required Funds

At this time, he requires $600,000 of equity funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity

At this time, Elson Mubaiwais seeking to sell a 40% interest in the business in exchange for the capital
sought in this business plan. The investor(s) will receive a seat on the board of directors and a regular
stream of dividends starting in the first year of operations.

2.4 Management Equity

After the requisite capital is raised, Elson Mubaiwa will retain a 60% ownership interest in the business.

2.5 Exit Strategy

The Management has discussed and planned for three possible exit strategies. The first strategy would
be to sell the mine to a larger entity at a significant premium. Since, the precious metals mining industry
maintains a moderately low risk profile once the business is established; the Management feels that the
mine could be sold for ten to fifteen times earnings.

3.0 Products and Services

The most profitable method of exacting gold would be to propect for an existing gold mine facility with
the intent
to pan gold deposits from the underlying soil. This manual method of gold acquisition would provide the
greatest return on investment for the business. The Company, may engage in sluicing/dredging if the land
is known to have a significant amount of gold that is buried deep within the ground. Elson Mubaiwa is also
sourcing the necessary equipment to grow the production from the current 250g a month to 1kg a month
In future Mr Mubaiwa hopes to have at Essy 12 a facility that will also have all of the necessary chemical
treatment and smelting equipment to allow the business to shape its collected gold into 1 kilogram bars
for resale to the open market. This will reduce outsourceing costs by 100%

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This slowdown in the Global economy due to the Corona Virus has also greatly impacted world trade,
which has halted to historical lows. However, gold mines operate with great economic stability as it is a
product that is in continued demand. This is especially true in today’s economic environment as inflation
has pushed the per ounce price of gold up substantially over the last 12 months. As long as commodity
prices continue to rise, the business should have no issues producing a continuous profit from its gold
mining operations.

4.2 Industry Analysis

Mining, beneficiating, and quarrying of gold is a $3 billion dollar a year business in the Zimbabwe. Within
the industry there are over 15000 domestic providers of gold mining operations that operate within 6
provinces. The industry employs more than 350000 people and provides adjusted annualized payrolls in
excess of $500,000,000 dollars. The growth rate of this industry has been tremendous with the recent
resurgence of inflation. The prices of gold (and other precious metals) have increased substantially as
investors have sought the safe haven of commodities in lieu of the falling value of the dollar. Additionally,
the greater wealth of developing nations has pushed the per ounce price of gold passed $800. This
demand is expected to remain strong in the face of inflationary pressures.

4.3 Customer Profile

Essay 12. intends to sell all its gold directly to Fidelity a gold buying division of the Reserve Bank of
Zimbabwe.

5.0 Marketing Plan

The marketing campaigns required by Gold Mine are minimal as the business will sell its mined gold
directly to Fidelity. As such, it is imperative that any marketing expenditures undertaken focus on
developing relationships with strategic players and partners in the industry like investors, bankers,
Zimbabwe ministry of mines department who issue Gold prospecting licenses

5.1 Marketing Objectives

 • Develop relationships with Ministry of mines for help with acquiring prospecting license on known
gold bearing properties

• Establish relationships with investors and bankers so as to have the necessary capital

5.2 Marketing Strategies

Elson Mubaiwa will develop ongoing purchase order relationships (based on market prices) with national
and international gold dealers and wholesalers that will acquire the Company’s inventory of mined gold. In
order to complete this aspect of Gold Mine marketing operations, Elson Mubaiwa will directly contact well
known gold buyers. As these buyers are constantly searching for new gold sources, developing these
relationships will not be an issue.

5.3 Pricing

As of 2014, legally, the RBZ is the sole buyer and exporter of gold in Zimbabwe. This was done to
strengthen the RBZ’s hand in monitoring and mobilisation of the ASGM sector and to boost foreign
currency earnings. The FPR acts as the RBZ’s gold-buying agency, giving FPR a monopoly to buy, refine
and export gold in Zimbabwe. FPR is licensed to buy gold from small scale producers and holders of gold
buying permits, as well as LSM operations. The company has decentralised its buying activities from
Harare to cover the entire country, thereby significantly reducing the security risks associated with
transporting gold for the small-scale sec- The FPR has offices as well as agents on the ground who buy
gold. It may buy directly from miners or through secondary buyers and agents licensed to buy on behalf of
FPR. In practice, the FPR mostly buys from licensed, small-scale operations. Gold delivered to the
centres is paid for on the spot after carrying out a specific gravity determination of the gold content. (The
customer does have the option of using the fire assay method to determine gold purity, however, if the
customer opts for this method, payment will then be made after the analysis which is carried out at the
Head Office in Harare. The price is dictated by the London Bullion Market Association (LBMA) gold spot
price, with licensed buyers sent a gold price daily from the FPR via text message or WhatsApp

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget
6.3 Management Biographies

Elson Mubaiwa has operated Essy12 for the past 6 years . He has worked as senior employee at the ministry of mines in
Gweru with Government of Zimbabwe for over 20 years in charge of the plant and machinery department

7.0 Financial Plan

7.1 Underlying Assumptions

 • The Founder will acquire $600,000 of equity funds to develop the business.
 • Elson Mubaiwa will sell a 40% equity interest in the business in exchange for the requisite
capital sought in this business plan.
  • Essay 12. will have an annual revenue growth rate of 16% per year.

7.2 Sensitivity Analysis

In the event of an economic downturn, the business may have a decline in its revenues. In an economic
recession, the demand for gold decreases as people will have less discretionary income. However, in
today’s economic climate, inflation has become a serious concern, and investors have driven up the per
ounce price of gold substantially as a safe investment to hedge against inflationary risks. As such, the
business should have very few issues regarding top line income.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements