2. SELWANENATURERESERVE
Table of Contents
Background and Location
High Value Breeding Programs
The Process
Concept and Responsibilities
Business Models and Estimates
Sable Antelope
Nyala
Black Impala
Farm Layout
Lodges
Game Breeding in the News
Management
3. SELWANENATURERESERVE
Background and Location
Selwane Nature Reserve is situated on 4100ha of wild Africa in the Phalaborwa area
of Limpopo. The Reserve has hundreds of different animal species like Zebra, Impala,
Kudu, Giraffes and Waterbuck. We are currently busy setting up breeding programs
for exotic species like Sable, Nyala, Black Impala, Buffalo.
The Reserve also makes for a great stay over if you are on your way or returning
from the Kruger National Park as it is only 50km away.
Our up market Leadwood and Baobab Lodges can accommodate 12 people. The
Bush braai tent camp is where we hold events like the 'Spirit of Africa' and other
team building events can accommodate up to 60 people.
Our Management team and helpful staff will make your stay here a pleasant one
and leave you feeling refreshed and relaxed.
Come and visit us to experience what Africa has to offer.
5. SELWANENATURERESERVE
High Value Breeding Programs
Selwane Nature Reserve is cooperating with international investors to take part in
breeding of endangered species.
The breeders (Selwane Nature Reserve) handles the setup of the necessary
infrastructure (fences and camps), including the related feeding on a daily basis and
veterinary services.
The investors buy their own set of animals. The initial herd remains the property of
the investors. Offspring are shared between investors and breeders on a 50/50
basis. The investors carries no extra costs apart from the initial investment to buy
the breeding animals, and the investor remains the sole owner of the originally
purchased herd.
Detailed overviews are given in the various Breeding Models listed later in this
presentation. As shown in the models, the ROI for the investors are expected to be
in the range of 30-50% per year.
6. The Process
10-20 Females + 1 Male
Maximizes the number of calves
Long term investment
3-7 years depending on the species
No dividend the first 3 years
Animals captured and transported during the winter season
Investor entry/exit is once a year in case animals needs to
be sourced from/sold to other farms
Programs can be extended
Investor exit = SNR has the right of first refusal
SELWANENATURERESERVE
8. SELWANENATURERESERVE
The Breeding Concept
Selwane Nature Reserve Investor
50% share of the offspring 50% share of the offspring
Provide land, infrastructure and expertise Provide initial breeding stock
Identifies animals to purchase (tagged and chipped) Purchase animals from Selwane or seller
Carries all cost for food and general veterinary services No cost towards infrastructure and maintenance
Provide quarterly reports Receive quarterly reports
Build the Selwane Brand Access to our luxury accommodation
Sales and Marketing Enjoy financial returns from a fast growing industry
9. SELWANENATURERESERVE
Our Responsibilities
Selwane Nature Reserve Investor
Land, infrastructure, vehicles, equipment, systems, staff,
electricity, water and expansion
No cost on land, infrastructure, vehicles, equipment, systems,
staff, electricity, water and expansion
All salaries for farm and game management staff No cost on salaries
All maintenance costs No maintenance cost
All feeding costs No feeding costs
All normal ongoing veterinary services No normal and ongoing vet and meds costs
All day-to-day operational costs No day-to-day operational costs
Marketing and advertising costs No marketing or advertising costs
All permit and registration costs No costs for permits and regisrations
Selwane carries certain costs pertaining to receiving animals
and placing them in camps (admin on each animal, dna,
blood and pre-meds)
10% initiation fee, transport and vet cost to translocate initial
breeding herd, and in some cases tags and micro chips
Selwane Nature Reserve pays its own taxes on icome
received
Investor pay his own taxes on income received
11. SELWANENATURERESERVE
Sable Antelope
Sable antelopes (hippotragus niger) are considered to be a “high value, rare
game” and “conservation dependent” species. The total sable population in
Africa is estimated to be 75000. The “free roaming” population of 15000 is
declining. Sable breeding in private farms and conservancies are
replenishing the losses.
12. SELWANENATURERESERVE
Sable Antelope - Assumptions
All currency = USD
Purchase Price Cow 80 000$
Selling Price Growth Cow 80 000$
Purchase Price Bull 200 000$
Selling Price Heifer 70 000$
Selling Price Bull Calf 6 000$
Mortality 10 %
Ratio Cows/Bull 10
% births Female to Male 50 %
% price escalation/year 5 %
Number of Females 10
Number of Males 1
Initial Capital Cost of Herd 1 000 000$
15. SELWANENATURERESERVE
Sable Antelope – Investment Model (Example)
Investment amount $ 1 000 000
Result: IRR ~31% over 8 years
Herd Value @ End of Year 1 2 3 4 5 6 7 8
Investor Value
Female Cow 800 000 840 000 882 000 926 100 972 405 1 021 025 1 072 077 1 125 680
Breeding Bul 200 000 210 000 441 000 463 050 729 304 1 021 025 1 340 096 1 969 941
Investor Herd Value @ Year End 1 000 000 1 050 000 1 323 000 1 389 150 1 701 709 2 042 051 2 412 172 3 095 621
Joint Value due to growth
Growth Female Cow - - 396 900 833 490 1 509 659 2 458 118 3 812 438 5 729 150
Heifer 315 000 661 500 850 854 1 221 584 1 704 793 2 396 091 3 361 686 4 718 531
Bull Calf 27 000 56 700 102 698 167 219 259 350 389 738 574 077 834 132
Joint Value due to growth 342 000 718 200 1 350 452 2 222 293 3 473 801 5 243 947 7 748 201 11 281 813
Year End Value of combined herd 1 342 000 1 768 200 2 673 452 3 611 443 5 175 510 7 285 998 10 160 374 14 377 434
Net Investor Value Add 50% of the growth
Capital -1 000 000 - -220 500 - -243 101 -255 256 -268 019 -562 840
Net Investor Value Add 50% of the growth 1 171 000 1 409 100 1 998 226 2 500 296 3 438 609 4 664 024 6 286 273 8 736 527
16. SELWANENATURERESERVE
Sable Antelope – Investment Model (Example)
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
1 2 3 4 5 6 7 8
Net Investor Value Add 50% of the Growth
17. SELWANENATURERESERVE
Nyala
Today over 80% of the total population is protected in national parks and
sanctuaries, mostly in South African protected areas. These are the Ndumo Game
Reserve, uMkuze Game Reserve and Hluhluwe-Umfolozi Game Reserve and Kruger
National Park. 10 to 15% occur on private land like the Selwane Nature Reserve.
They mostly occur in South Africa due to the high demand for adult males as game
trophies.
Investment amount R 1 050 000 (USD 105.000)
30 female ewes - 2 male rams
Result: 200%-300% return after 5 years
18. New Black Impala Programs in 2015
$500 $75000
Black offspring from 3rd generation and onwards
ROI of 10(!) times the investment after 7 years
21. SELWANENATURERESERVE
A Bull Market of a Different Kind
The Wall Street Journal
http://online.wsj.com/news/articles/SB10001424052702303563304579445382496815614
Photography by Charlie Shoemaker for WSJ.Money
22. SELWANENATURERESERVE
Boom in Game Prices…
The Financial Mail
http://www.financialmail.co.za/fm/2013/08/15/boom-in-game-prices-divides-game-
experts
Norman Adami - SA Breweries executive chairman, game farmer and
WRSA marketing director
23. SELWANENATURERESERVE
Mr Niel Fourie
Mr Herman Fourie
Mr Jurie Lombard Mr Magnus Pedersen
Management Team
Founder & Director Founder Director
Manager and PH ManagerAdmin Manager
Mrs Anel Fourie Mr Sonti Malatji
Editor's Notes
Entering a high value breeding program one should be aware that this is a long term engagement. To maximize the growth of capital, breeding programs runs for 3-7 years, where no offspring are sold or dividends are paid during the first 3 years.
Animals not already available for purchase from Selwane Nature Reserves own stock, need to be sourced from other farms or auctions. Selwane Nature reserve will take care of this process, but due to the hot climate, capture and transport can only take place during the cooler winter season (May – Sept in South Africa).
Breeding groups are formed in separate camps. Normally 10-20 females with one male. This ensures maximized the number of calves per season and in turn maximizes the ROI for the investors.
If the investor want to exit the breeding program after the contract period is over, Selwane Nature Reserve reserves the right of first refusal to buy the animals to be sold. This is done to minimize stress to the animals, since they can then continue stay on the farm.
The investor can also choose to extend the breeding program after a certain contract period is over.
Selwane Nature Reserve has decided to start 3-4 breeding programs for Black Impalas during 2015.
Each program is based of breeding with normal Impala females (20-25) and Black Impala male (1).
This is a long term project (7 years), since mixing the normal Impala females, available at very affordable prices, with high value Black impala male, will result in high value black impala offspring in the 3rd generation and onwards.
The larger 4000ha area (red boundary) is used for safari and hunting activities.
Smaller camps (yellow boundary) shows the separate breeding camps for Sable, Nyala and Impala/Black Impala
Leadwood Lodge
Situated on the eastern banks of the seasonal Makwena River. Ideal for family or friends, it consists of three spacious rooms (sleeping 2people each) with en-suite bathroom and each with a secluded veranda. Communal kitchen with gas stove and -fridge, crockery and cutlery are available for your catering needs and an open dining area.
Additional lighting is provided by lanterns which enhance the romantic ambience. A splash pool and boma, promise to contribute to an unforgettable stay.
Baobab Lodge
Named after the huge baobab tree in the garden Baobab Lodge has a pool side area surrounded by a big garden. Our gardens are well-kept and a small dam at the end of the garden provides wildlife with a refreshing drink during the warm days. Our staff is friendly and our professional chef will prepare only the best traditional meals for a hungry traveler, who is looking for an incredible South African safari.
McKnights Cottage
This luxury guest cottage is an old style farmhouse which was given a makeover with modern influences, ensuring a comfortable and stylish stay for our guests. It consists of two bedrooms with en-suite bathrooms, an outdoor shower, living area with sleeper couch, kitchen with gas stove, -fridge, crockery and cutlery. The interior walls are Pandome with rust-stained cement floors enhancing the old farmhouse lifestyle that is so loved in the bushveld.
Bush Braai
Bush Braai can accommodate up to 60 campers and is mainly used for events like the Spirit of Africa 4x4 event with Amarok. Every camper has the opportunity to choose and set up his own tent next to the seasonal Makwena River. A leopard lives near Bush Braai so don't set up your tent to far from the Braai area.
