Diamond mining business plans are not simple documents. Most diamond mines are in Africa (Botswana, Angola, etc.) or the Asia continent (Russia, India, etc.) which means that the capital requirements and elements of the market analysis will require international research. Even if your off-takers are all U.S. firms or middlemen in Europe such that your target market requires no research, describing the undertaking is no easy task. You will need to list out the equipment required for the mine, paying careful attention to whether you will be leasing or purchasing the machinery required. There is also the question of manpower: while labor can be had cheaply in most terrains where diamond mines can be established, you will still be required to produce an exact model of your staffing needs over a period of five years. Other diamond mining plan topics:
• Who will you be competing with near the mine and what allowances can you make for safety issues common at diamond mines?
• What regulatory requirements will you face?
• How much capital do you need to allocate for non-equipment expenses like overhead? Will there be an office in the field?
• Do you have any strategic partners or alliances in the industry that make the investment more appealing?
• How much capital will you need and what ownership share in the venture would you be willing to give up to get it?
Your financial pro forma should show a five year projection of expenses and revenues that results in a sales forecast, cash flow statement, P&L, balance sheet, break-even analysis, and a sensitivity analysis adjustable for any variance in sales you could encounter. A monthly breakdown for your first year post-funding is also critical. Diamond mining business plans are complex documents where the financial model should be closely integrated with current metrics on diamond values and labor rates, etc. MasterPlans can prepare this document for a venture audience but will typically require 3-4 weeks of development. Our in-house team of expert modelers and researchers has worked on a range of mining plans in the past and will be a valuable resource for you. Call 877-453-2011 to speak with a consultant about your project.
