LEGEND MINING SYNDICATE BUSINESS PLAN- FINAL DOCUMENT

Executive Summary

Legend Mining Syndicate Company is a standard and licensed gold mining company that will be
based in Guruve district, Mashonaland Central province, Zimbabwe and will be wholly owned
by us

Our vision is to be the leading small scale, gold mining company in Zimbabwean mining sector
mining safely, economically in an environmentally friendly way. We are committed to
improving the socio-economic aspects of all stakeholders concerned by providing quality mining
engineering operations and build lifetime relations with them. We hope to achieve this by hiring
efficient and highly trained employees.

We have secured permits and licenses from all relevant departments both at the local government
and state level in Zimbabwe. Legend Mining Syndicate aims at redefining how a standard small
scale, underground gold mining business has to be run on both the regional and global level.

Due to the increase in demand for gold on the global market, we have put plans to exploit this
fruitful market in Zimbabwe. With our measured ore reserve with average favorable grades of
8.21g/t, we are quite sure we will strive to the top mining safely, economically and in an
environmentally friendly way.

Legend Mining Syndicate Company is a partnership business that will be owned by Doubt
Tagarira, Oscar Tagarira, Lovemore Masaze and Tinashe Tagarira. Oscar Tagarira who is the
Chief Executive Officer of the company has a degree in Mining Engineering with over 5 years’
experience working in the mining industry as a senior mining engineer prior to starting Legend
Mining Syndicate. He will be working with a team of professionals to build the business and
grow it to enviably heights.

Our Product and Service Offerings

Legend Mining Syndicate is established aiming to maximize profits in the gold mining industry
by competing favorably with the current leading small scale gold mining companies in the
industry. To achieve this goal, we have a competent, hardworking team with a wide range of
expertise to accomplish our goals.

Our products are listed below;

Gold ore mining

Gold ore beneficiation

Gold ore and concentrates

Gold electro-winning and smelting

Our Mission and Vision Statements

 Our vision is to be the leading small scale gold mining company in the Zimbabwean
mining sector and on the global stage as well.

 Our mission is to establish a standard gold mining company that mines economically,
safely in an environmentally friendly manner.

Our Business Structure

We have decided to hire qualified and competent personnel to hold the following positions

 Chief Executive Officer (Owner)

 Mining Manager

 Human Resources and Admin Manager

 Mining Technical Services Manager

 Accounting Manager

 Maintenance Manager

 Truck Drivers, lashers and drillers

Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

 Increases management’s usefulness by recruiting, selecting, orienting, training, coaching,

counseling, and disciplining managers; collaborating values, strategies, and objectives;
assigning accountabilities; preparing, monitoring, and appraising job results; developing
incentives; developing a climate for offering information and opinions; providing
educational opportunities.

 to set the company's strategic direction and make sure that the company's goals are
accomplished

 strategic planning, raising money, and representing the company to the outside world.

 Makes, connects, and implements the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy.
  Accountable for signing checks and documents on behalf of the company

 Evaluates the success of the organization

Mining Manager

 Oversees the smooth running of operations in the mine

 Makes sure that quality is maintained at all times

 Maps out strategies that will lead to efficiency amongst workers in the organization

 Responsible for training, evaluation and assessment of the workforce

 Ensures operation of equipment by completing preventive maintenance requirements;

calling for repairs.

 Ensures that the mining standards meet the expected safety ,health and environmental
standard at all times.

Human Resources and Administration Manager

 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization

 hiring and interviewing staff

 administering pay, benefits, and leave of staff

 Responsible for training, evaluation and assessment of employees

 Oversees the smooth running of the daily business activities.

Mining Technical Services Manager

 Managing the workflow of the geology, mine planning and mine survey departments
 Responsible for administration, overseeing, monitoring and evaluating the technical
services at the mine among other duties as assigned by the CEO.

Mining Casual Workers

 Liable for operating jack hammers, drill rigs and other machines on the mine

 Handle the mining

 Assist in charging, tie up and blasting operations

  Responsible for lashing of ore

Accountant

 Responsible for preparing financial reports, budgets, and financial statements for the
organization

 Provides managements with financial analyses, development budgets, and accounting

reports; analyzes financial feasibility for the most complex proposed projects; conducts
market research to forecast trends and business conditions.

 Responsible for financial forecasting and risks analysis.

 Performs cash management, general ledger accounting, and financial reporting

 Responsible for developing and managing financial systems and policies

 Responsible for administering payrolls

 Ensures compliance with taxation legislation

 Handles all financial transactions for the organization

 Serves as internal auditor for the organization

SWOT Analysis

In search for excellence when it comes to running a standard gold mining company, we engaged
some of the finest business consultants relative to and within the mining industry to look through
our business concept and critically examine the prospect of the business and to assess if it’s
realistic to run a standard small scale gold mine economically.

 Strengths:

Provides quality/high paying jobs

Supports regional economy

High environmental standards

Experienced management team

 Weakness:

We do not take for granted the facts that we have weaknesses which are as follows among
others;

Negative public perception

Insufficient infrastructure and machinery

Finite resource/mine life

Extreme opposition by environmental groups

 Opportunities:

The opportunities available to us are unlimited.

Expansion of the ore reserve through exploration geology

Public outreach/educate on value

Increased jobs for the locals and international workers as well

Small to medium sized mine development

 Threats:

Environmental groups/lawsuits

New regulations/permits/uncertainty

Lack of skilled workers

Decline in the gold prices

MARKET ANALYSIS

 Market Trends

Gold mining is a lucrative business in the Zimbabwean mining sector. According to the figures
from the Zimbabwean Ministry of Mines, 60% of gold sold to the Fidelity Printers and Refiners
in 2021 was from small scale miners.

However the most common trend in the sector is that gold production is directly related to the
political conditions. Due to political instability in the past decade, quite a number of gold mining
companies closed.

However after the year 2018, a significant number of gold mines resuscitated and economic
small scale mines emerged . The most registered and well organized mining companies look
beyond the market within their locations or state; they ensure that they strike business deals with
leading jewelry making companies in the African and other countries of the world.

Our Target Market

After conducting the market research, we came up with the following organizations as potential
buyers of our gold produce. When it comes to supplying product from gold mines, there is
indeed a well-defined market. The target market for products from gold mining companies is far
reaching.

 Fidelity Printers and Refiners

 Jewelry production companies

 Art and culture companies

 Gold merchants

Our Competitive Advantage

Some of our competitive advantages are availability of rich ore resource with measured ore
reserve of 10Mt of gold @ 3.52g/t, ability to forward sell production to Fidelity Printers and
Refiners when appropriate and of course the ability to comply with environmental laws.

As a standard and licensed gold mining company, we know that gaining a competitive edge
requires a detailed analysis of the demographics of the surrounding area and the nature of the
existing competitors. And even if you are successful at first, new competitors could enter your
market at any time to steal your regular customers. Hence we will not hesitate to adopt
successful and workable strategies from our competitors.

Another competitive advantage that we have is the vast experience of our management team; we
have people on board who understand how to grow a business from the scratch to becoming a
national phenomenon. Our large and robust distribution network and of course our excellent
customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the
best within our category in the industry, meaning that they will be more than willing to build the
business with us and help deliver our set goals and achieve all our aims and objectives. We will
also give good working conditions and commissions to freelance sales agents that we will recruit
from time to time.

SALES AND MARKETING STRATEGY

 Sources of Income

Legend Mining Syndicate will generate income by selling its produce to its customers

Sales Forecast

The sales projections for the company are as follows

  First Fiscal Year: USD$950,000

 Second Fiscal Year: USD$2.5 million

 Third Fiscal Year: USD$5.5 million

N.B: This projection was done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown and there won’t be any major
competitor offering same product and customer care services as we do within same location.
Please note that the above projection might be lower and at the same time it might be higher.

 Marketing Strategy and Sales Strategy

By conducting a thorough market survey and feasibility studies in order for us to penetrate the
available market in Zimbabwe, we attained detailed information and data that we were able to
utilize to structure our business to compete with other gold mining companies.

We hired experts who have good understanding of the gold and silver ore mining line of business
to help us develop marketing strategies that will help us achieve our business goal of winning a
larger percentage of the available market.

Legend Mining Syndicate will adopt the following sales and marketing approach to reach our
customers

 use of introductory letters to production companies and other stakeholders

 use the internet to promote our product cum business

 Engage in direct marketing and sales strategies

Our Pricing Strategy

At TTK® Gold Mining Company we will keep the prices of our products slightly below the
market prices to gain ground. After gaining some ground, we will peg our products at market
price since we are very confident of the quality and grade of our gold produce.

 Payment Options

The payment policy adopted is all inclusive since different customers prefer different payment
options that they are comfortable with. We will ensure abide by the financial rules and
regulation of the Republic of Zimbabwe.

We will utilize the following payment options to our clients;

 Cash payments
  bank transfer

 online bank transfer

 Payment via check

 Payment via bank draft

Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed
budget of how to achieve our aim of establishing a standard and highly competitive gold mining
company in the United States of America and here are the key areas where we will spend our
startup capital on;

 The total fee for registering the business in Zimbabwe – $750.

 Legal expenses for obtaining licenses and permits as well as the accounting services
(software, P.O.S machines and other software) – $7000.

 Marketing promotion expenses for the grand opening of Legend Mining Syndicate in the
amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the
total amount of $3,580.

 The cost for hiring business consultant – $1,500.

 Insurance (general liability, workers’ compensation and property casualty) coverage at a

total premium $700.

 The cost for payment of rent for a gold ore mine – $500,000 (Per Annum)

 The cost for acquiring gold and silver ore mine operating license fee – $500,000

 Other start-up expenses including stationery ($500) and phone and utility deposits
($2,500).

 Operational cost for the first 3 months (salaries of employees, payments of bills etc)
– $150,000

 The cost for start-up inventory (gold ore mining equipment, trucks and other related gold
and mining devices) – $350,000

 The cost of launching a website – $500

 Miscellaneous – $10,000
We require an estimate of three million dollars ($3 million) to successfully set up a standard and
highly competitive small scale gold mining company in Zimbabwe.

Generating Startup Capital for Legend Mining Syndicate

No matter how fantastic a business idea might be, if adequate funds required to finance the business are
unavailable, the business might not become a reality. Finance is a very important factor when it comes
to starting a gold mining business.

Legend Mining Syndicate is a partnership business owned and financed by Doubt Tagarira, Oscar
Tagarira, Lovemore Masaze and Tinashe Tagarira. We intend to accommodate one more partner to
assist with capital since the possibility of expansion to a large scale gold mine is very high. We will
generate part of the startup capital from personal savings and sell of stocks and apply for a bank loan
from the bank

N.B: We have been able to generate about $600, 000 (Personal savings $500, 000 and soft loan from
family members $100, 000) and we are at the final stages of obtaining a loan facility of $1.5 million from
our bank. Documentation for acquiring funds from the bank has been completed.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have the capacity and
competence of their employees, their investment strategy and their business structure. If all of these
factors are missing from a business, then it won’t be too long before the business close shop.

Our company’s corporate culture is designed to drive our business to greater heights and training and
retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be based on performance for a period of three years
or more. We know that if that is put in place, we will be able to successfully hire and retain the best
hands we can get in the industry; they will be more committed to help us build the business of our
dreams.