August 2023 Newsletter
As Salaamu Alaykum Dear Investor
As another year is flying by, it is a good time to reflect on the progress that has been made by Al Mabroor during 2023. It has generally been a tough financial year for many businesses and households across South Africa. Higher interest rates and a weakening Rand contributed to overall negativity and less spendable income. On the agricultural side, meat prices have been under pressure in the first half of the year. This was largely due to the effects of Foot-and-Mouth Disease, with very few beef exports allowed, leading to a local oversupply. We have however seen a steady increase in prices over the past 5 weeks and expect this trend to continue towards December, as most abattoirs are able to export meat again. Below are some of the main positives we would like to share with our loyal investors.
Al Mabroor Projects has been operating under the license of Insight Capital for the past 2 years. Insight Capital holds a Category 2 license with the FSCA, which oversees Fund Management.
Al Mabroor is pleased to announce that we received our own Category 1 FSCA license. The name of the license is Al Mabroor Wealth and the FSP number is FSP 53125. All advice given to investors by Al Mabroor staff will be given under this license.
Al Mabroor will continue to manage the Al Mabroor Agri Fund under the supervision and guidance of Insight Capital. In the meantime, Al Mabroor has also commenced the FSCA application process to obtain its own Category 2 license.
Annual Financial Statements and Annual General Meeting
The audited Annual Financial Statements for Al Mabroor Agri will be presented to the Board of Directors at the Board meeting scheduled for the 8th of August 2023.
Once it is signed off, it will be made available to the investors.
We are planning to do the Annual General Meeting at Beefcor during the middle of October 2023. We are just waiting for the weather to get a little warmer as it will be an outdoor event. Visiting the farm and experiencing the day to day running of the farm, will give investors a better insight and understanding of the assets that form part of the Al Mabroor Agri Fund.
Talking about Beefcor, we are happy to inform investors that all acquisition costs have been paid and fully settled during March 2023. All investors that came in on the short term 6-month funding option, have now been repaid, including all profits due to them.
Beefcor remains one of the more effective and profitable feedlots in South Africa and we are very excited about the road ahead. Beefcor has the capacity to keep 45 000 animals. At full capacity, Beefcor has the undoubted potential to deliver excellent returns to investors. There are currently around 20 000 animals in the feedlot. Our largest challenge is still to get 45 000 animals in the feedlot. We are planning a raise to fill the feedlot to capacity, as this will be in the best interest of all investors. More detail to follow shortly.
Al Mabroor Agri expanded their sheep farming operation towards the end of 2022 and would again like to step up their current operation. At present we keep 2 300 ewes and 6 000 lambs at our Brandfort sheep farm. At full capacity the facility can keep 4 500 ewes and 16 000 lambs. Our aim is to get the Brandfort feedlot to full capacity as soon as possible. Additionally, we have space for another 2 500 ewes at a farm in the Free State and would like to acquire these animals before month end. This will be done by a separate raise between 2 August 2023 and 25 August 2023. The aim is to raise a total of R 35 million. Visit our website here to download the application form.
On a very positive note, Al Mabroor Agri currently has an offtake for around 2000 lambs per week to the abattoir. At present levels we can only supply on average 700 per week. To supply 2000 lambs per week, Al Mabroor Agri will need a total of 16 000 animals in the feedlot.
Food security remains a vital exponent not only in South Africa, but especially in the rest of Africa. Al Mabroor Agri is exceptionally well positioned to deliver in this need and much hard work have been put in behind the scenes to get the company to become one of the major role players in the South African meat production sector. There is still ample room for expansion and many opportunities come across our table on a daily basis. For now, our focus will be to solidify and maximise our current operations to become as profitable as possible. In the medium to longer term, the focus will shift to become more vertically integrated. We are keen to get our own brand on the shelves in order for investors to effectively support themselves. We would again like to use this opportunity to thank all our investors for their continued and loyal support and we are looking forward to many more successful years ahead.
We trust you will find the above in order. Kind regards, Al Mabroor Admin