6. H2pe0ple
An L3C Partnership
Holistic Approach:
SHARED VALUE & RESPONSIBILITY
Creating a Mutually Sustainable Future
7. An L3C
H2pe0ple Partnership
Initial Reinvestment of
grant & periodic 0%
Newmont
H2pe0ple
investment50-60%
profits of of 60%
Investment of 30% NGO 0%
National
Investment of 10-20%
Investment of 10% Gov. 2-4%
2%
Zocamoan 6%
Incentive return
Mgmt.
Sharing the experience of self-sustaining business ownership
8. H2pe0ple
Advisory Voting Members
Newmont Community
CEO
Representative Developers
National
Zocamoan Functional
Government
Representative Specialists
Representative
Communications Project
Specialist Representatives
9. National Government Relations
H2pe0ple Positive Externalities
Royalties
Stimulation of economic
development
Mobile communications
Board of directors Innovative solutions
solving social ills
Return on investment
10. Education is the key to unlock the golden door of freedom
-- William Butler Yeats
VOCATION
11.
12.
13.
14. Water Treatment
Contaminated mine and lake water supply
Artificial
New wastewater treatment plant
reservoirs
http://washafrica.wordpress.com/2011/07/01/ghana-wastewater-entrepreneur-ashley-murray
http://www.howwemadeitinafrica.com/tapping-money-from-waste-water/1644/
15. Communication
Doctor Connection
Money Connection
POLICE
Newmont Connection
1
Commitment Registry
18. Financial Footprint
$500
$450
Total Investment:
$400
$1.2 Billion
$350
$300
Millions
$250
$200
Project NPV:
$150 $17.2 Million
$100
$50
$0
4 5 6 7 8 9 10 11 12
Years
19. Financial Footprint
Incurred Costs Saved Costs
3% 2% 0%
Water treatment plant
L3C funds Potential Issue Cost Saved
23%
Profit donations to L3C
Protests about water $800,000
1% Mobile solution availability and quality
70% Soccer facility
Legal judgments and fines $0
School construction
Suspension caused by $5,000,000
protests concerning
H2People Cost exploration
Water treatment plant $22,000,000.00
Complaint-related $0
L3C funds $280,350.00
Profit donations to L3C $7,350,733.27
investigation and follow-up
Mobile solution $1,012,000.00 Production interruptions $15,000,000
Soccer facility $540,000.00
School construction $128,232.00 Total $20,800,000
Total $31,311,315.27
20. Keys to Negotiation
Inoculation: Acknowledge concerns as credible
Methods of Persuasion:
Pathos: Emotional
Logos: Rational
Ethos: Integrity
http://www.chulavistarangers.com/Tournaments/Directions/index_E.html
21. The fool tells me his reasons.
The wise man persuades me with my own.
-- Aristotle
24. Saved Costs
Potential Issue Estimated Issues Projected Issues Cost Saved
Protests about 6 2 $800,000
water availability
and Quality
Legal Judgments 100% 100% $0
and Fines
Suspension Caused 2 1 $5,000,000
by Protests
Concerning
Exploration
Complaint-Related 40 80 $0
investigation and
follow-up
Production 5 0 $15,000,000
Interruptions
25. Detailed Financials
Year 0 Year 1 Year 2 Year 5 Year 12 Year 13
Y2014 Y2015 Y2018 Y2025 Y2026
Total Revenue $0 $0 $672,413,793 $559,704,433 $260,000,000
Gross Profit $0 $0 $447,413,793.10 $395,418,719.21 $185,000,000.00
CAPEX on Mine Development 9,000,000 95,000,000 80,333,333 80,333,333 80,333,333
Operating Expenses per ounce $577.50 $259,875,000 $189,750,000 $86,625,000
Refining & Sales cost per ounce $4.50 $2,025,000 $1,478,571 $675,000
Cost of Vocational Schools: 0.005
Cost of construction of schools $128,232
Water treatment plant cost $22,000,000
L3C registration fee in US and Africa $350
Base fund for L3C $100,000 60,000 60,000
Soccer training facility $540,000 $540,000
ConsultADoctor infrastructure $20,000
Newmont Instant Connect App $50,000
Microloan to Zocamoans (KIVA quote) $25.00
starting from Year 4, $25 to 5000 people each year
from the profit/donation money to L3C
Mobile bill/sim card payment to Zocamoans $1,012,000
(assuming bill payment + smartphone for only 11,000
displaced people)
assume 60% of population without phones
Operating Profit ($9,060,000) ($95,060,000) $105,180,460 $123,856,814 $17,366,667
Royalties 3% ($271,800) ($2,851,800) $3,155,414 $3,715,704 $521,000
Profit donated to L3C $1,020,250 $1,201,411 $168,457
(for every $1 in profit, 1 cents given)
PAT ($6,065,670) ($63,642,670) $65,653,117 $77,310,804 $10,840,187
