Case study 06 · Mining and engineering · South Africa
Capital raise for a start-up mining and engineering company
Investment case development and capital-raise advisory for a new entrant building capability across mining, engineering and the resources value chain.
R59m capital raised · employment growth from 3 to 75 jobsThe business need
A multi-disciplinary mining and engineering start-up was seeking growth capital.
How Athari helped
Athari shaped the growth strategy, investment case and capital-raise process.
R59m capital raised · employment growth from 3 to 75 jobs
A decision-ready investment case helped the business secure the capital required to scale delivery capacity and employment.
A South African mining and engineering services start-up had reached a critical milestone: securing a multi-million-rand, long-term contract with a large coal mining house.
The company had already demonstrated its capability, with revenue increasing by more than twofold from Year 1 to Year 2 and more than fivefold from Year 2 to Year 3. To fulfil the new contract and execute its growth strategy, however, it needed to raise R59 million to procure yellow-fleet equipment.
Its longer-term ambition included developing early-stage coal and manganese exploration properties and moving from a fully outsourced contract-mining model towards managing owner-operated assets.
The challenge: from proven performance to scalable growth
The challenge was not a lack of potential, but the absence of a consolidated and compelling investment narrative. The company needed to translate its historical performance, secured contract and future ambitions into a credible, fundable proposition.
Athari was engaged to bridge that gap by building a data-driven investment thesis rooted in the company's proven track record.
Solution and approach
Our approach moved beyond financial projections to build an investment case that anchored future growth in verified historical performance.
- Deep-dive diagnostic and historical analysisWe analysed the company's operations, financial history and the terms of the new mining-services contract, including validation of its historical growth.
- Integrated financial modellingWe developed a five-year model covering income statements, balance sheets and cash flows. It incorporated the capital expenditure and returns for the yellow fleet, revenue from the secured contract, and the valuation and development timelines of the coal and manganese properties.
- Strategic road mappingWe synthesised the analysis into a clear plan showing investors how capital would be deployed to scale a proven business model.
The process culminated in a robust business case for the capital raise and a practical roadmap for the company's growth and development.
Deliverables and tools for success
Investment memorandum
A professionally crafted investor-roadshow document that presented verified historical growth as evidence of future potential.
Five-year growth plan
A detailed strategic roadmap that used past performance as the springboard for future scale.
Operational plan
Practical recommendations to optimise current business practices ahead of expansion.
The impact: capital secured to scale a proven business
The investment case gave funders the confidence to assess the company as a high-performing business ready for its next growth phase, rather than a speculative venture. The model quantified the potential workforce expansion from three to 75 employees and the resulting socio-economic value.
The case was approved by an empowerment fund and a large enterprise-development fund. The company secured the full amount through a tailored mix of debt and grant instruments.
Ready to build a compelling case for your business?
Explore our six lessons learned in the field from raising capital with qualifying small enterprises, or partner with Athari for business-case and financial-model development, market intelligence and entry strategies, and capital-raising support.
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