Newsletter January 2023
As Salaamu Alaykum
We would like to wish our loyal investors all the best for 2023.
We at Al Mabroor are very excited about the year ahead. Our core focus remain firmly on beef production and the acquisition of Beefcor promises to be very beneficial in the years to come. We diversified into more agricultural sectors over the past two years and in many respects it helped us during the difficult couple of months where there was Foot and Mouth disease in the Morgan Beef Feedlot. Many of the projects we embarked on over the past two years are starting to reach their full potential.
We were blessed with very good returns from our maize and sunflower production and will be looking to expand in these sectors over the next 2 years. Our cattle breeding projects are proving extremely profitable and we are expecting around 16 500 calves to be born in 2023. Expansion opportunities in Namibia are endless and we currently own a herd of just under 10 000 animals in Namibia. Our diesel distribution business is growing quicker than expected and reached 280 000 litres in December. The forecast for the end of the year is 700 000 litres per month.
We concluded the acquisition of Beefcor and the focus is now firmly set on acquiring enough animals to maximize profits to investors. The feedlot can hold 40 000 animals and our current stock levels at Beefcor are around 15 000.
We need around R200m to stock the feedlot to reach its full capacity and ultimate profitability. There will be separate communication going out in the next week to investors involved in the initial Beefcor raise.
Road Trip 2023
We are planning our next road trip to show our investors our farming operations. The proposed dates will be the week of the 9th to the 11th of May. Investors that are interested to join can contact firstname.lastname@example.org.
New En Commandite Partnership Structure
The new structure will be implemented from the 1st of March 2023. Essentially all individual partnerships will be merged into one large partnership, reducing the risk for current investors. It is important to note that going forward, all existing investors will be treated according to the same terms and conditions as before.
At the last Board meeting it was concluded that the following notable changes will be made to all new investments concluded after the 1st of March 2023:
Investors will receive 97% allocation of their investment funds. The remaining 3% will be allocated to administration costs and commissions payable to financial advisors that comply to FSCA standards.
Investors will still receive 85% profit share.
Minimum investment term is 1 year.
Withdrawals in the 1st 12 months will be subject to approval from the Board and will be subject to a 3% penalty.
A 30-day notice period will be applicable to all withdrawals.
Capital Withdrawals and Payment Dates
We received some enquiries from investors regarding withdrawals and when they will receive their capital when they withdraw. We would like to clarify and explain the process. We need 30 days’ notice, before you are due for profit distributions, for any capital and accumulated profit withdrawals. For example, if you want to liquidate your investment on the 1st of March you need to give us notice by the 1st of February. Please note, to achieve the best returns, your cattle will still only be sold to the abattoir during the last week of February or first week of March. The notice period only serves to inform us that we shouldn't procure cattle for purchase in March to replace your number of cattle. Payment terms to the abattoir are 21 days, so we only receive the investors capital towards the middle to end of March. We will then make payment to investors when we receive the capital amounts and do not foresee any capital repayments being made by later than the 20th of the month.
Additional Board Members
Al Mabroor Agri (Pty) Ltd had a Board meeting on the 29th of November 2022. The Board is excited to announce that the following committees has been established so as to further strengthen the corporate governance within Al Mabroor Agri (Pty) Ltd and by doing so further provide peace of mind for its investors.
Risk and Audit Committee
Shariah Advisory Committee
The Investment Committee will be as follows:
Wiaan Smit (CEO)
Nelius van Huyssteen (Legal)
Theunis Goosen (Agri Operational Manager)
One more candidate from our esteemed investors will be selected to serve on the Board and a further two investors to serve on the Investment Committee. We would like to take this opportunity to invite interested investors with the following minimum credentials to apply: Financial Candidate:
Qualified Charted Accountant CA(SA)
15+ years’ experience within the financial industry
Relevant exposure to the agricultural sector
15+ years’ experience in business
Relevant exposure to the agricultural sector
Applications need to be submitted by the 30th of January 2023 and no further applications will be considered after this date. Applications can be sent to email@example.com and should include the candidate’s full CV together with a short motivational letter. The investment committee will meet at least quarterly but may be called on when a new opportunity presents itself. All relevant applicants will be reviewed by the Board on its next meeting to be held on 7th of February 2023 and the final appointment will be shared in our March 2023 newsletter.
Al Mabroor Team