Funding Consultation and Application Process

Navigating financial statement preparation, audit readiness, and company valuations can be complex and time-consuming, especially for companies in specialized sectors like mining, precious metals manufacturing, and digital asset trading (like ETH). Ensuring accuracy, compliance, and clear presentation is crucial for stakeholder confidence, audits, and securing funding.

Our Solution: Tools to Empower Your Financial Process

We offer a suite of practical spreadsheet-based tools and frameworks designed to assist accountants and financial managers in the mining and trading value chain:

1. Financial Statement Preparation Template (Google Sheets)

This comprehensive template, generated via Google Apps Script, provides a structured environment to prepare draft financial statements and supporting schedules from your existing Trial Balance.

• Key Features:

  • Standardized Structure: Creates core sheets (Trial Balance Import, Account Mapping, Income Statement, Balance Sheet, Cash Flow Statement) following standard layouts.

  • Industry-Specific Schedules: Includes dedicated sheets for tracking complex areas like ETH Transactions (ETH_Transactions_Log), Mining Production & Inventory (Mining_Inventory_Prod), and Fixed Assets & Depletion (FA_Depletion_Schedule) with relevant columns and basic formulas.

  • Guided Workflow: Sheet numbering and a detailed Manual sheet guide users through the process, explaining inputs, links, and required formulas.

  • Built-in Checks & Formulas: Includes TB debit=credit checks, BS balancing checks, structural subtotals (Gross Profit, Total Assets), and key calculations on schedules (e.g., running balances, basic depreciation).

• Benefits:

  • Consistency: Ensures a standardized approach to FS preparation period after period.

  • Audit Support: Generates organized working papers (draft FS and schedules) useful for audit preparation, helping to trace figures back to the TB.

  • Valuation Data: Produces clearly laid out historical Income Statement and Balance Sheet data essential for input into valuation models (DCF, Comps, etc.).

  • Clarity: Helps organize complex data specific to mining (depletion) and ETH transactions.

• Important Note: This template requires an accurate Trial Balance exported from your primary accounting software and relies on the user manually setting up the Account Mapping and adding the crucial SUMIF (or similar) formulas to link the Trial Balance to the IS/BS lines, guided by the included Manual sheet.

2. Financial Metrics Calculator Feeder Template (Google Sheets)

Need to quickly gather inputs for an online financial metrics calculator or standardized reporting form? This simpler template streamlines the process.

• Key Features:

  • Detail Tabs: Structured sheets for inputting granular data for Revenue, COGS, Operating Expenses, Assets, Liabilities, and Equity.

  • Automated Dashboard: Consolidates totals calculated on the detail tabs into a central dashboard.

  • Checklist Output: Generates a final checklist sheet (Final Inputs Checklist) presenting the exact figures needed for easy input into external calculators or forms.

• Benefits:

  • Efficiency: Speeds up the collection of specific summary metrics.

  • Accuracy: Reduces manual calculation errors by summing details automatically.

  • Convenience: Provides a clear final list ready for data entry elsewhere.

3. AI-Powered Analysis Frameworks (Conceptual Design)

We have also designed sophisticated frameworks ("DLVIUSTUS Funding Application Analyzer" / "The Deal Maker") for AI-driven analysis. While the AI implementation requires further development, these frameworks outline processes for:

• Risk Assessment: Evaluating financial, market, team, and execution risks based on provided data.

• Funding Application Screening: Analyzing viability, investor fit, and generating structured reports for funding decisions.

• Investment Opportunity Evaluation: Assessing market context, predictive models, KPIs, and ROI potential.

• (Future): Integration could allow AI analysis directly on the data prepared within our Financial Statement templates.

Get Started:

Ready to bring more structure and efficiency to your financial reporting and analysis? Contact us today to learn more about these tools and how they can benefit your mining or trading business.

1. Initial Inquiry (Fund Seeker):

   • Applicants will complete a detailed form – either the Snapshot Pitch Form. or the Advanced Fundraising Application Form  Form. This requires providing essential project information, including scope, financial projections, market analysis, and management team details, which are crucial for our assessment.

     • • We offer two ways to submit your project for assessment:

         • Snapshot Pitch (Initial Qualification): For a quick, initial assessment of your project's potential and eligibility against our basic criteria. Please complete the Snapshot Pitch Form. 

         • Advanced Fundraising Application (IPO or Crowdfunding): For projects seeking broader funding opportunities like crowdfunding or IPOs. This requires a comprehensive evaluation. Please complete the Advanced Fundraising Application Form

2. Application Review (Consultant):

   • Description: Our team meticulously reviews the submitted application to determine if the project aligns with our investment criteria and areas of expertise (Exchange trading platforms, Fintech, AI, Precious Metals, Banking, etc.).

     • Evaluation of the project's potential for growth and profitability.

     • Assessment of the management team's experience and capabilities.

     • Analysis of the project's market viability and competitive landscape.

     • If the application meets the criteria, a strategic Google Meet is scheduled within five working days.

     • If the application does not meet the criteria, personalised feedback is supplied.

3. Initial Consultation (Both):

   • Description: A 1-2 hour initial consultation via Google Meet to establish a mutual understanding of the project's goals, the fund seeker's vision, and the investor's expectations.

     • Open dialogue to clarify project details and address any initial questions.

     • Discovery & Assessment: A deep dive into the fund seeker's business plan, market analysis, and financial projections to identify strengths, weaknesses, and potential opportunities.

     • For Investors: Initial assessment of the fund seekers team, and the proposed projects market.

4. Due Diligence & Assessment (Consultant):

   • Description: A 1-2 week period dedicated to a thorough examination of the project's viability and potential risks.

     • Quantitative analysis: In-depth financial modeling and analysis of market trends.

     • Feasibility studies: Evaluation of the project's technical, operational, and financial feasibility.

     • Market dynamics dissection: Analysis of the target market, competitive landscape, and regulatory environment.

     • Project funding viability assessment: Determination of the project's potential to attract investor interest.

     • For Investors: A deep dive into the fund seekers provided data, and also independent data gathering.

     • Identification of ideal investor matches: Matching the project with investors whose investment criteria align with the project's needs.

     • Report delivery with actionable insights: A comprehensive report outlining the project's strengths, weaknesses, and recommendations for improvement.

5. Quantitative Analysis and Feasibility Study (Consultant):

   • Description: A rigorous examination of the project's financial projections and market potential.

     • Forensic analysis of market dynamics and project funding viability.

     • Identification of ideal investor matches based on their investment preferences and risk tolerance.

     • Delivery of a detailed report with actionable insights, highlighting key strengths and areas for strategic enhancement.

II. Strategy and Planning (Both)

1. Strategy Development (Consultant):

   • Description: Crafting a customized funding roadmap to guide the fund seeker through the fundraising process.

     • Identification of ideal investor profiles: Defining the target investor audience based on their investment criteria and industry focus.

     • Refinement of the pitch deck: Enhancing the presentation materials to effectively communicate the project's value proposition.

     • Sculpting a financial model: Developing a robust financial model that demonstrates the project's potential for return on investment.

     • Improved financial modelling techniques that can enhance debit guarantees, optimize liquidity leverage, and minimize debit costs.

     • Innovative Financial Models for Macro and Micro Project Funding.

2. Project Presentation Material Preparation (Consultant):

   • Description: A meticulous process of developing compelling presentation materials that showcase the project's potential.

     • Approximately 5 months dedicated to crafting:

       • A visionary synopsis: A concise overview of the project's vision and goals.

       • Robust financial analysis: Detailed financial projections and analysis.

       • Strategic management reports: Reports outlining the management team's experience and capabilities.

       • Competitive intelligence: Analysis of the competitive landscape and market trends.

       • Proof of concept: Evidence of the project's viability and potential for success.

       • Legal and compliance fortifications: Documentation of legal and regulatory compliance.

       • Strategic endorsements: Letters of support from industry experts and partners.

       • Dynamic business flowcharts: Visual representations of the project's operational processes.

3. Investor Preparation (Fund Seeker):

   • Description: Equipping the fund seeker with the necessary tools and knowledge to effectively engage with potential investors.

     • Crafting a compelling narrative: Developing a clear and concise story that articulates the project's value proposition.

     • Mastering the art of investor relations: Guiding how to effectively communicate with and build relationships with investors.

     • Projecting confidence and vision: Training the fund seeker to confidently present their project and inspire investor confidence.

     • Document Requirements: Letter of intent, bank letter of good standing, company registration documents, shareholder certificates, executive resolution, business plan, cash flow forecasts, shareholder CVs, proof of address, and proof of funds.

III. Investor Outreach and Engagement (Fund Seeker and Consultant)

1. Investor Database Presentation (Consultant):

   • Description: Leveraging your extensive network to connect the fund seeker with potential investors.

     • Weeks to months of investor outreach and engagement.

     • Presentation of the project to your network of discerning investors.

     • Orchestration of strategic meetings to facilitate dialogue and build relationships.

     • Representation of the fund seeker's interests throughout the process.

2. Investor Outreach & Engagement (Consultant):

   • Description: Providing ongoing support and guidance throughout the investor engagement process.

     • Hands-on support through every stage of the fundraising journey.

     • From mock pitches to due diligence, ensuring the fund seeker's success.

3. For the Investor:

   • Description: Support in the due diligence process.

   • Refining the Art of Due Diligence. Support in data gathering, and analysis of the provided data.

IV. Contract and Closing (Both)

1. Contract Process (Consultant/Legal Teams):

   • Description: Navigating the legal and contractual aspects of the investment agreement.

     • Upon investor approval, meticulous navigation of the agreement phase.

     • Including corporate structuring, SPV establishment, and contract negotiation.

     • Addressing legal and insurance requirements.

     • Costs vary and potentially reaching 5% of the investment.

2. Closing & Follow-up (Consultant):

   • Description: Finalizing the investment agreement and providing ongoing support.

     • 1-2 weeks for closing and follow-up activities.

     • Financial trustee appointment and oversight.

     • Project inspection, consulting, and management.

     • Corporate accounting and project monitoring.

This guide outlines important financial metrics used to evaluate a business's performance and value, presented in a logical sequence an evaluator might follow.

Logical Flow for Business Evaluation: Profitability -> Returns -> Efficiency -> Liquidity -> Solvency -> Valuation

I. Profitability Analysis: Is the Business Generating Profit?

These metrics assess the fundamental ability of the business to make money from its operations.

1. Gross Profit Margin

   • Calculation: Subtract the Cost of Goods Sold (COGS) from total Revenue, then divide that result by the total Revenue. Express this outcome as a percentage.

   • Description: Measures the percentage of revenue remaining after deducting the direct costs associated with producing or purchasing the goods/services sold. A higher margin indicates better efficiency in production/procurement and stronger pricing power.

   • Purpose and Scope: To assess the fundamental profitability of the company's core products or services before considering operating overheads. Scope focuses narrowly on the relationship between revenue and direct production/service costs (COGS).

2. Operating Profit Margin (EBIT Margin)

   • Calculation: Divide the Earnings Before Interest and Taxes (EBIT) by the total Revenue. Express this outcome as a percentage.

   • Description: Measures the percentage of revenue remaining after deducting both COGS and operating expenses (like salaries, rent, marketing). It reflects the profitability of the company's core business operations.

   • Purpose and Scope: To evaluate the profitability generated from normal, day-to-day business operations, independent of financing decisions (interest) and tax environment. Scope covers all operating revenues and operating expenses.

3. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

   • Calculation: Typically calculated by taking Net Income and adding back Net Interest Expense, Taxes, Depreciation, and Amortization expenses.

   • Description: While not a ratio itself, EBITDA is a key profitability metric often used as a proxy for operating cash flow before capital expenditures.

   • Purpose and Scope: To provide a measure of operating profitability that strips out non-cash expenses (D&A) and the effects of financing (Interest) and taxes. Scope focuses on operational earnings potential before accounting for capital structure, taxes, and asset base depreciation. Widely used in valuation comparisons.

4. Net Profit Margin

   • Calculation: Divide the Net Income (the "bottom line" profit after all expenses) by the total Revenue. Express this outcome as a percentage.

   • Description: Measures the percentage of revenue remaining as profit after all expenses (including COGS, operating expenses, interest, and taxes) have been deducted.

   • Purpose and Scope: To determine the company's overall profitability after accounting for all costs and expenses. Scope is comprehensive, reflecting the final profit relative to total revenue.

II. Return Ratios: How Effectively is Profit Generated Relative to Investment?

These ratios measure the return the company generates based on the resources invested.

5. Return on Assets (ROA)

   • Calculation: Divide the Net Income by the Average Total Assets over a period. Express this outcome as a percentage.

   • Description: Measures how efficiently the company uses its total assets (both debt and equity financed) to generate net income.

   • Purpose and Scope: To assess the effectiveness of management in utilizing the company's entire asset base to generate profits. Scope links bottom-line profit (Net Income) to the total assets deployed.

6. Return on Equity (ROE)

   • Calculation: Divide the Net Income by the Average Shareholder Equity over a period. Express this outcome as a percentage.

   • Description: Measures the rate of return generated for the owners (shareholders) on their equity investment in the company.

   • Purpose and Scope: To evaluate the profitability generated specifically for the equity owners of the company. Scope links bottom-line profit (Net Income) to the shareholders' stake (Equity).

III. Efficiency Ratios: How Well are Assets and Operations Managed?

These ratios assess operational efficiency, which impacts profitability and cash flow.

7. Asset Turnover

   • Calculation: Divide total Revenue by the Average Total Assets over a period.

   • Description: Measures how efficiently the company uses its assets to generate revenue. A higher ratio suggests the company is generating more revenue per dollar of assets.

   • Purpose and Scope: To evaluate how effectively the company's assets are deployed to generate sales. Scope focuses on the relationship between total revenue generated and the total asset base used.

8. Inventory Turnover (Relevant for businesses holding inventory)

   • Calculation: Divide the Cost of Goods Sold (COGS) by the Average Inventory level over a period.

   • Description: Measures how many times a company sells and replaces its inventory over a period. A higher turnover generally indicates efficient inventory management.

   • Purpose and Scope: To assess the efficiency of inventory management. Scope focuses specifically on the flow of inventory relative to the cost of goods sold.

9. Accounts Receivable Turnover (Relevant for businesses offering credit)

   • Calculation: Divide Net Credit Sales by the Average Accounts Receivable over a period.

   • Description: Measures how quickly the company collects payments owed by its customers. A higher turnover indicates efficient credit and collections.

   • Purpose and Scope: To evaluate the effectiveness of the company's credit and collection policies. Scope focuses on the speed at which credit sales are converted into cash.

IV. Liquidity Ratios: Can the Business Meet Short-Term Obligations?

These ratios assess the company's ability to cover its immediate debts.

10. Current Ratio

    • Calculation: Divide Total Current Assets by Total Current Liabilities.

    • Description: Measures the company's ability to pay off its short-term liabilities (due within one year) with its short-term assets. A ratio significantly above 1 generally suggests good short-term financial health.

    • Purpose and Scope: To assess the company's short-term solvency or ability to meet immediate financial obligations. Scope compares all current assets to all current liabilities.

11. Quick Ratio (Acid-Test Ratio)

    • Calculation: Subtract Inventory from Total Current Assets, then divide the result by Total Current Liabilities.

    • Description: A more conservative liquidity measure than the current ratio because it excludes inventory. It assesses the ability to pay short-term debts using only the most liquid assets.

    • Purpose and Scope: To provide a stricter test of short-term solvency by evaluating if immediate obligations can be met without relying on selling inventory. Scope focuses on highly liquid assets relative to current liabilities.

V. Solvency & Leverage Ratios: Can the Business Meet Long-Term Obligations?

These ratios assess long-term financial health and the company's reliance on debt.

12. Debt-to-Equity Ratio

    • Calculation: Divide Total Debt by Total Shareholder Equity.

    • Description: Measures the proportion of company financing that comes from debt compared to equity. It indicates the level of financial leverage (risk).

    • Purpose and Scope: To assess the company's capital structure and financial risk by comparing debt financing to owner financing. Scope focuses on the balance between total debt and total equity.

13. Debt-to-Asset Ratio

    • Calculation: Divide Total Debt by Total Assets.

    • Description: Measures the percentage of a company's total assets that are financed through debt.

    • Purpose and Scope: To evaluate the extent to which the company's assets are funded by borrowed money, indicating overall leverage and risk. Scope compares total debt to the entire asset base.

14. Interest Coverage Ratio

    • Calculation: Divide Earnings Before Interest and Taxes (EBIT) by the total Interest Expense for the period.

    • Description: Measures the company's ability to make its required interest payments on outstanding debt using its operating earnings (EBIT). A higher ratio indicates a better ability to service debt.

    • Purpose and Scope: To determine the company's margin of safety for paying interest on its debt, assessing its ability to handle its debt burden. Scope focuses on operating earnings (EBIT) relative to interest obligations.

VI. Valuation Metrics: What is the Business Worth?

These metrics synthesize information about profitability, growth prospects, and risk to estimate the company's value.

15. Market Capitalization (Market Cap) (For Public Companies)

    • Calculation: Multiply the Current Share Price by the Total Number of Outstanding Shares.

    • Description: Represents the total market value of a company's outstanding equity shares.

    • Purpose and Scope: To provide a quick snapshot of the public market's valuation of the company's equity. Scope is limited to the equity portion and applies only to publicly traded companies.

16. Enterprise Value (EV)

    • Calculation: Start with Market Capitalization, add Total Debt (short-term and long-term), and subtract Cash and Cash Equivalents.

    • Description: Represents the total value of the company, including both debt and equity holders, often seen as the theoretical takeover price.

    • Purpose and Scope: To estimate the total economic value of the entire business enterprise, independent of its capital structure. Scope includes the market value of equity, debt, and cash reserves.

17. EV/EBITDA Multiple

    • Calculation: Divide the Enterprise Value (EV) by the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

    • Description: Compares the total value of the company (EV) to its operating cash flow proxy (EBITDA). Widely used for valuation comparisons.

    • Purpose and Scope: To provide a valuation metric relative to operational performance, useful for comparing companies with different capital structures or tax rates. Scope links total enterprise value to core operating earnings (before interest, tax, D&A).

18. Price-to-Earnings (P/E) Ratio

    • Calculation: Divide the Current Share Price by the Earnings Per Share (EPS).

    • Description: Indicates how much investors are willing to pay for each dollar of a company's current earnings.

    • Purpose and Scope: To assess the market's valuation of a company's stock relative to its net profitability (earnings). Scope links the market price per share to the company's bottom-line profit per share.

19. Price-to-Sales (P/S) Ratio

    • Calculation: Divide the Market Capitalization by the Total Revenue (or divide Share Price by Revenue per Share).

    • Description: Compares the company's market cap (or share price) to its total revenue. Useful for valuing companies not yet profitable or when earnings are volatile.

    • Purpose and Scope: To provide a valuation metric relative to top-line revenue generation, useful when earnings are negative or unstable. Scope links equity value (Market Cap or Price) to total sales.

20. Discounted Cash Flow (DCF)

    • Calculation: This involves multiple steps: Project the company's future free cash flows for a certain period (e.g., 5-10 years). Calculate the present value of each projected cash flow using a discount rate (like the Weighted Average Cost of Capital - WACC). Estimate the company's value beyond the projection period (Terminal Value) and calculate its present value. Sum the present values of the projected cash flows and the present value of the Terminal Value.

    • Description: A fundamental valuation method that estimates a company's intrinsic value based on the present value of its expected future free cash flows.

    • Purpose and Scope: To determine the intrinsic economic value of the business based on its ability to generate future cash flows, discounted back to their present value. Scope is comprehensive, considering future cash generation potential, risk (via WACC), and long-term value.

21. Book Value

    • Calculation: Subtract Total Liabilities from Total Assets (this is equal to Shareholder Equity).

    • Description: Represents the net value of the company's assets as recorded on its balance sheet.

    • Purpose and Scope: To provide a baseline valuation based purely on accounting figures. Scope reflects the historical cost-based net worth attributable to shareholders according to the balance sheet.

Important Considerations for Interpretation:

• Context Matters: Analyze these metrics together, not in isolation. Compare them to past performance (trends) and industry benchmarks for meaningful insights.

• Data Quality: The accuracy of these metrics depends on the reliability of the underlying financial data.

• Beyond the Numbers: Always consider qualitative factors like management strength, competitive advantages, market conditions, and industry outlook alongside these quantitative measures.

Supporting Materials (International Applicants)

"To facilitate our initial due diligence process, please upload the following documents. This list represents typical requirements; specific document names may vary based on your country of incorporation. If original documents are not in English, certified translations may be required later. Consolidating multiple documents into a single PDF or a ZIP file is preferred where possible. Please ensure scans are clear and legible. Financial models should ideally be submitted in their original format (e.g., Excel).

Phase 1 Due Diligence - General Document Checklist:

A. Legal & Compliance Documents:

1. Official Company Registration Certificate: Proof of legal incorporation/registration from the relevant government authority in your jurisdiction.

2. Founding Documents: Articles of Incorporation, Articles of Association, Company Charter, Bylaws, or equivalent constitutional documents.

3. Proof of Ownership: Up-to-date Shareholder Register, Capitalization Table (Cap Table), or official documentation confirming current ownership structure.

4. List of Directors & Officers: Official register or certificate listing current company directors and key officers.

5. Tax Compliance Certificate: Certificate of Tax Good Standing or equivalent document from the relevant national tax authority, confirming current tax compliance.

6. Director & Major Shareholder IDs: Certified or Notarized copies of Government-Issued Photo IDs (Passport preferred) for all Directors and major Shareholders (e.g., holding >20%). Certification requirements may vary.

7. Proof of Principal Business Address: Recent utility bill, bank statement, or lease agreement confirming the primary operating address (not older than 3 months).

8. Critical Operating Licenses: Copies of any essential licenses, permits, or regulatory approvals required to operate legally in your specific industry and jurisdiction.

B. Financial Information:

9. Bank Reference Letter: An official letter from your primary business bank confirming account details and relationship (preferably indicating account standing, issued within the last 3 months).

10. Historical Financials:

    • For Established Companies: Audited Financial Statements (AFS) for the last 2-3 fiscal years, if available (please specify accounting standards used, e.g., IFRS, Local GAAP).

    • If AFS not available: Signed Management Accounts (Income Statement, Balance Sheet, Cash Flow Statement) for the last 1-2 fiscal years, clearly labeled as unaudited.

11. Recent Financials: Signed Management Accounts for the most recent quarter (or within the last 3 months).

12. Financial Projections: Detailed Financial Model (preferably Excel) covering at least 3-5 years, clearly stating key assumptions, and including projected Income Statement, Balance Sheet, and Cash Flow statement. Ensure this aligns with Section 6 responses and includes sensitivity analysis.

C. Business Plan & Strategy Documents:

13. Comprehensive Business Plan: Detailed plan covering the problem, solution, market analysis, operations, marketing & sales strategy, team, and financial plan.

14. Investor Pitch Deck: A concise presentation summarizing the key aspects of your business/project.

15. Market Analysis: Supporting documentation for market size, growth, trends, and target audience claims made in your application (can be part of the Business Plan or separate).

D. Team Information:

16. Key Team CVs: Curriculum Vitae (CVs) / Resumes for the core management team members highlighted in Section 5.

E. Optional but Recommended Supporting Documents:

• Significant Customer Contracts or Letters of Intent (LOIs).

• Key Supplier or Partnership Agreements.

• Proof of Intellectual Property (Patents, Trademarks) if applicable.

• Relevant Industry Certifications.

• Pilot Study Results, Technical Specifications, or Product/Service Demonstrations (link or file).

Please note: This checklist covers our general requirements for the first phase of due diligence. Specific requirements may vary based on jurisdiction, and further documentation may be requested as we progress."

Note on South African Differences (For Your Internal Use):

When we receive an application from a South African entity, we would substitute/add the following specifics:

• A.1: CIPC Registration Certificate (CoR 14.3) & latest Annual Return (CoR 30.1).

• A.2: Memorandum of Incorporation (MOI).

• A.3: Shareholder Certificates & Share Register.

• A.4: CIPC Director List (CoR 39 or CIPC Disclosure Certificate).

• A.5: SARS Tax Clearance Certificate / Pin.

• Add A.9 (SA Specific): Valid B-BBEE Certificate or Sworn Affidavit.

• A.6: Certified South African ID documents.