Business Model

Presentation
Buy your commodities in the safest mode

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Table of Contents

1 Introduction 3 The Business Model

1.1 – Business introduction. 3.1 – History
3.2 – Producing
3.3 – Refining
3.4 – Transports
Company
2 3.5 – Banking Solutions
Presentation 3.6 – Our Strength
3.7 – Distribution Model
2.1 - Company information. Who we are 3.8 – Swot Analysis
2.2 – Mission, Vision and Values 3.9 – Increase the Production
3.10 – Business in 3 Steps
3.11 – Products
3.12 – Prices
3.13 – Financial Model

Contact us
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 Introduction 01
1.1 – Business introduction

1 Introduction 2 The Existing

KHUMOTONE, makes this business model to present Today KHUMOTONE as contract with Copper/Cobalt
its economical model for Copper and Cobalt mines and refineries. We have a full support of
transactions from DRC. Access Bank in this business. We have administrative
lobbies to ensure the all-business feasibility.

5 The aim 4 The need 3 Operations

We extract the row material
With the settled business We can only work with from our mines, we refine
configuration, we will be able contractual clients. them directly in our refinery
to supply our customers with and we ensure a CIF delivery to
granted quantities and your indicated Port.
continuity of work.
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2. Presentation of the company

2.1 – Information about the company - Who we are

Founded in 2019, KHUMOTONE, has a single goal: efficiency in supplying his clients in
commodities and consumables. For this, we investment gradually in the creation of a
trusting partnership with mining cooperatives, with refineries, with banks, the mining
ministry services and worldwide suppliers. The work philosophy is based on quality,
safety and the best value for the customer.

For KHUMOTONE in its segment of mining business, efficiency, safety and quality are the
main factors, becoming primordial requirements with our partners who work with us in
this business.

Based on these principles the company KHUMOTONE was created to provide our
customers with what is fundamental in the business. EFFICIENCE, SAFETY AND QUALITY.

We have a structure with branches, representatives and agents, directed to act all over
the world.

KHUMOTONE believes to have conditions to meet the needs of your company and the
certainty that we will form much more than a business relationship, but a successful
partnership.
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 Business
Ensuring the production, refine and delivery of
Copper/Cobalt, focused on results.

Differential
We value dedication in customer service, information and negotiations.
KHUMOTONE prioritizes the partnership with our customers, and the goal is
not only to provide commodities, but also to conquer and retain all customers,
attracting new partners. In this way, we value quality standards in all
processes, from extraction until the delivery of the product at destination,
having as result the total solution of what we proposed to do, as well as the
complete satisfaction of the customer.
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2.2 Mission, Vision, Values
Mission
To act in a transparent and responsible way, through
the provision of commodities, maintaining a
permanent focus on qualification, excellence and
continuous improvement, to fully satisfy the needs of
our partners, contributing to their results and to the
development of society.

Vision
To be seen as a business partner of its clients,
standing out for quality, responsibility and efficiency
in the provision of commodities.

Values
Transparency; Ethics; Organization; Valuing Talent
and Creativity; Work; Search for Knowledge and
Qualification.
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3. The Business Model

Refining Plant Transportation

Mining Cooperatives

Artisanal mining accounts for 20% of From Kolwesi to Lubumbaxi, several transport
the DRC's mining production. 10 companies are based in the area, transporting products
million people depend directly or There are around a hundred refineries in the from the mines to the refineries. Once the raw material
indirectly on this activity. Katanga mining area. has been refined, they guarantee delivery to the end
119 mining cooperatives are spread customer's warehouse or to a defined port in
across the country, mostly in the neighboring countries.
Katanga provinces.

Banks Company

we decided to work with ACCESS bank. It's an Khumotone is a Congolese company. We are
international bank with branches on every licensed to operate in the mining sector and have
continent. We have established a partnership based the status of traders. We work transversally with
on trust and hard work. the various trades that make up the mining sector.

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 b) Cobalt
3. The Business a) Cooper

3.1 History

Copper: the DRC is Africa's 1st

Cobalt 1° world producer of cobalt (60% of
copper producer (1.1 million tons, or
global reserves) with 74,000 T, a strategic
5% of world production), ahead of
mineral (associated with copper or nickel)
Zambia (700,000T) and the 1st
used in the manufacture of automotive
copper producer in Africa and 5th in
batteries and exported almost entirely to
the world world after Chile, Peru, e) Future
China.
China and the United States.
c) DRC mining

d) Actual

Global demand for these

minerals, for which the
DRC is the world's leading
Market dominated by China (80%), in partnership producer (60% of global
with Gécamines and others. Over the past 10 years, the mining supply for cobalt), is very
The main groups present in the DRC are: industry in DR Congo has been one of strong and set to rise in the
Tenke Fungurume Mining (China), Ivanohé the most dynamic in sub-Saharan Africa. long term, given the needs
(Canada), Sicomines (China), Kibali Goldmines Despite a difficult operating of the automotive industry.
(South Africa) and Glencore (Swiss). environment (water and electricity
supply difficulties).
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3. The Business Model
The strategy
3.2 - Producing
To encourage inclusion in the formal sector and to be granted status,
artisanal miners must acquire an artisanal miners' card. They can only sell
their mining production to approved traders and purchasing outlets. Our
strategy is very simple: we have signed exclusive partnership contracts with
cooperatives that will guarantee the production and supply of raw materials
on an ongoing basis.

The areas
Kolwezi is a mining town west of Likasi in the Lualaba province of the
Democratic Republic of Congo. The town is also a center for banking and
artisanal mining. It is also the terminal of one of the world's longest high-
voltage power lines, the Inga-Shaba. The whole town sits on gigantic
deposits of copper and cobalt.

The Hubs
We have these possible connections for the distribution and delivery of
copper/cobalt to countries bordering or not bordering the Katanga zone.
Kolwezi and Solwezi are two mining pools positioned at the western end of
the Copperbelt.
We have the border between the DRC and the Republic of Angola, via their
two respective provinces of Lualaba and Moxico, separated by the Luau
River.
The distance to deliver by truck between Kolwezi and Dar es Salam is 2,382
km, and to deliver to Johannesburg is 2,461 km.
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 3. The Business Model
3.3 - Refining

The row material The Process The Result

Copper is only present in The first stage consists of
the earth's crust at an successive sieving, crushing,
This operation results in the Plant capacity
production of blister packs
average concentration of grinding and sorting operations, We made an agreement with
55 parts per million
containing 98 to 99.5% copper, in Our strategy
which transform the ore into a the form of plates. a refinery that had a
million. It no longer exists coarse powder, onto which water production capacity of 30 Our strategy is to be the
Electrolytic refining transforms
in nature in its native is sprayed. Then we bring the tons per day. With our order refinery's partner, bringing in
the blister, previously cast as an
state, as it did in ancient richest part of the ore to the book, we will have sufficient orders to enable the
anode, into a cathode using the
times. in antiquity. It is surface to separate it from the exclusivity over the entire refinery to grow in production
soluble anode process.
present in the form of sludge, obtaining a concentrate refinery and have led the and capacity. In this way, we
At the end of the ore processing
salts containing 30 to 90% containing 25 to 40% copper. refinery to improve its can guarantee our customers
and refining operations, the
copper, mixed with other Conversion at around 1,300°C in system and move to a regular deliveries and
copper production cycle is
metals, some of which are a rotary furnace separates the production of 50 tons per compliance with contracts.
complete. Copper is now in its
rarer than copper, such as copper from the other day.
raw metal form.
gold and silver. An ore is constituents contained in the
considered rich if it matte.
.
contains more than 1.8%
pure copper.

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3. The Business Model
3.4 - Transports
2 Shipping
From Lubumbaxi to Kolwezi, the region is covered by transport
companies. There are a multitude of trucks for hire for transport
operations from mines to refineries, and from refineries to warehouses
or ports of shipment to the destination.

The documentation
The trajectory from the refinery to the warehouses (Zambia) or ports of
embarkation in neighboring countries (Durban and Dar Salam) is at our
expenses. It is our responsibility to prepare the transport documents.
The customer receives a draft of the BL to confirm the data. The
customer then receives the final BL.

Terms Conditions
1 The delivery condition will always be CIF to the destination indicated by
the customer. Whether in a warehouse, port of shipment in a
3 neighboring country or abroad.

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3. The Business Model
3.5 – Bank Solutions

Banks in DRC
The top 10 banks Equity
Commercial Bank of Congo
(Equity BCDC),International Bank
for Africa in Congo, FBN Bank
DRC SA, Citibank, Standard Bank Our Solution
Congo, Rawbank, Ecobank RDC, Our solution is based on an
Trust Merchant Bank, Afriland agreement with Access Bank, which
First Bank et Access Bank DRC, will act as a third party guaranteeing
accounted for nearly US$6 billion both the seller and the buyer. Each
in assets. contract will be intermediated by
Access Bank.

How it will work

Access Bank Each customer will block their funds
in an account of their own or ours in
The Access Bank Group the Access bank. This amount will be
comprises Access Bank Plc and its used as collateral for the tonnages
subsidiaries (banking and non- that the customer wishes to have. For
banking) located in The Gambia, each CIF delivery, the customer will
Sierra Leone, Zambia, Rwanda, pay for the quantity delivered.
Burundi, Ghana and the D.R.
Congo. It also has offices in
France, the UK, Dubai and China 12
(Shanghai and Beijing).
3. The Business Model
3.6 - Our strength

Bank

Transportation
We have an agreement
Refinery with the Access bank
Raw Material We have agreements which will cover all
with several transport operations from the
We have a contract
companies. DRC or abroad.
We have contracts with the with the refinery. Our
Guaranteeing journeys Providing the necessary
cooperatives, so our average production is
from mines to guarantees for each
production is guaranteed. estimated at 45 tonnes
refineries, warehouses party.
a day. With the
possibility of growing. and ports.

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 3. The Business Model 3. Border
3.7 – Distribution model
Khumotone will be in charge of operations here, and
1. Raw Material we'll be guaranteeing the legalization of the products to
be delivered. We will ensure that our trucks cross
Our system is simplified as much as possible to
borders.
increase efficiency. The cooperatives extract raw
We will accompany the trucks to their destination.
materials and put them in the bags. They load the
trailer trucks with the bags, which are then 2. Refinery
transported to the refinery.
The refinery stage is the most important because its
4. Warehouses / Ports
production capacity enables us to guarantee tonnage to our If the destination is our warehouse or a port in
customers. We estimate that we can refine 800 to 1,200 a neighboring country, we will deliver and have
1 tonnes per month. The trucks leave the refinery directly for
the border and finish their journey in the customer's
the delivery note signed. If the destination is a
port in the rest of the world, Khumotone will
warehouse or the port of embarkation designated work with a local freight forwarder and produce
beforehand. the necessary shipping documents, until the
3 final BL is sent to the customer.

2 4

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3. The Business Model
3.8 - SWOT Analysis

Weaknesses Risks
The cooperatives A change in government
operate very much on policy on cooperatives.
an archaic basis,
which is limiting our
production for the
time being.

Strengths Opportunities
We work based on By investing in
contracts. We are still machinery, we can
far below the real significantly increase
potential of the our production.
company.

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3. The Business Model
3.9 – Increase the Production

Most of our prospects want deliveries of

between 5,000 and 20,000 tonnes a month.
We are committed to reaching the 5000
tonnes figure or more from the second year
In our business model, we have planned to onwards.
evolve in several stages.
Our monthly production and delivery
capacity will be between 1,000 and 2,000
tonnes.
We expect to maintain this capacity for at
least the first year.

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3. The Business Model
3.10 – Business in 3 steps

1
Blocked fonds
Once the agreements have been signed, our partner
must block the funds in the Access bank on an
account belonging to him or to the Khumotone
account for an amount equivalent to the tonnage
expected to be delivered each month.

2
Production and Delivery
Once the first step is completed, Khumotone will start
the production of the order and will take care of all the
steps until the delivery to the location agreed with the
customer. This in CIF format, whatever the port of
destination (in Africa or anywhere else in the world).

Payment

3
Payment will be made on delivery after confirmation of
arrival of the goods at the port of destination.
The blocked amount serves as a guarantee of business
continuity. Under no circumstances should it be used as a
means of payment for a monthly delivery. The partner
will only pay for the quantity delivered per transaction. 17
3. The Business Model
3.11 - Products

Copper

As you know, where you find copper, you'll also find cobalt.
Our mines produce 85% copper and 15% cobalt. Two
different ores, but the same business model. Of course, two
different orders.

Cobalt

Cobalt is not one of the world's most widespread resources,

85% 15% with two-thirds of its reserves located in the Democratic
Republic of Congo (DRC). It is the world's leading producer.

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3. The Business Model
3.12 - Prices

Other considerations may come

into play, depending on whether
Our prices will be
the partner wants to invest in our
negotiated based on -15
production lines.
on the LME (London
Metal Exchange) price.

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3. The Business Model
3.13 – Financial model

Blocked
Designation Quantity LME LME -15
Amount

Copper 1000 Tonnes 9300 USD/Ton 7900 USD/Ton 7 900 000 USD

Cobalt 150 Tonnes 27 220 USD/Ton 23 137 USD/Ton 3 470 550 USD

How it will work?

The way we work is very simple:
You choose the mineral and the quantity you want to buy based on monthly deliveries.
You make the deposit in the form of blocked funds in your or our account at Access Bank in the DRC.
We accept that the blocking for the trial is done in your account at Access bank anywhere in the world.
However, once the final contract has been signed, the funds must be blocked at Access Banque in the DRC.

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CONTACT US
KHUMOTONE SARL
N° RCCM: CD/KNG/RCCM/19-B-00594
Address: Immeuble Botour 4eme
NiveauLocal 11 - Gombé
Kinshasa-DRC

Tel: +33 6 19 81 58 79
Email: [email protected]

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