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12-Month Projections · Conservative Estimates

Financial
Projections

Conservative 12-month revenue, cost, and profit projections for a single-location metal recycling depot. Based on real-world market rates and typical startup volume ramp-up.

Key Assumptions

Average buy price: $0.85/lb blended (all metals)
Average sell price: $1.15/lb blended (30% gross margin)
Starting volume: 4,100 lbs/month, growing 15–20% monthly
Operating expenses: $6,800–$9,500/month (rent, labor, fuel, insurance)
No equipment financing costs included (cash purchase assumed)
Single location, 1–2 staff in Year 1
Catalytic converter revenue not included (upside)
Diamond Metals platform fee included in operating expenses

3-Year Summary

Year 1

Revenue

$467,600

Gross Profit

$140,280

Net Income

$46,280

Net Margin

9.9%

Year 2

Revenue

$840,000

Gross Profit

$252,000

Net Income

$126,000

Net Margin

15.0%

Year 3

Revenue

$1,320,000

Gross Profit

$396,000

Net Income

$224,400

Net Margin

17.0%

Month-by-Month — Year 1

MonthVolumeRevenueCOGSGross ProfitOp. ExpensesNet Income
Month 14,100 lbs$8,200$5,740$2,460$6,800-$4,340
Month 26,750 lbs$13,500$9,450$4,050$6,800-$2,750
Month 39,900 lbs$19,800$13,860$5,940$7,200-$1,260
Month 413,200 lbs$26,400$18,480$7,920$7,200+$720
Month 516,500 lbs$33,000$23,100$9,900$7,500+$2,400
Month 619,250 lbs$38,500$26,950$11,550$8,000+$3,550
Month 721,600 lbs$43,200$30,240$12,960$8,000+$4,960
Month 824,000 lbs$48,000$33,600$14,400$8,500+$5,900
Month 926,250 lbs$52,500$36,750$15,750$8,500+$7,250
Month 1028,500 lbs$57,000$39,900$17,100$9,000+$8,100
Month 1130,750 lbs$61,500$43,050$18,450$9,000+$9,450
Month 1233,000 lbs$66,000$46,200$19,800$9,500+$10,300
Year 1 Total$467,600$327,320$140,280$94,000+$46,280

Startup Cost Breakdown

Equipment

Industrial floor scale (10,000 lb)$3,000–$8,000
Forklift or pallet jack$5,000–$25,000
Wire stripping machine$2,000–$6,000
Pickup truck / flatbed$25,000–$60,000

Facility & Setup

Depot lease deposit (3 months)$6,000–$18,000
Yard fencing and security$3,000–$12,000
Storage containers / bins$1,500–$5,000
Office setup and POS system$1,000–$3,000

Licensing & Legal

Business registration and legal fees$1,500–$4,000
Scrap dealer license and permits$500–$2,000
Insurance (first year premium)$3,500–$8,000
Environmental compliance setup$500–$2,000

Working Capital

Initial scrap purchasing float$10,000–$30,000
Marketing and launch costs$2,000–$6,000
Contingency reserve (10%)$6,500–$18,900
Diamond Metals platform setup$0–$500

Total Estimated Startup Capital

$85,000 – $250,000

Recommended Cash Reserve

+$30,000

Revenue Stream Breakdown

Non-Ferrous Metals (Copper, Brass, Aluminum)

55%

Highest margin — copper alone can be 40%+ of revenue

Ferrous Metals (Steel, Iron, Stainless)

25%

High volume, lower margin — drives scale and smelter relationships

Catalytic Converters (PGMs)

12%

Highest per-unit value — requires Diamond Metals catalog for accurate pricing

Fleet Pickup Contracts

5%

Recurring commercial revenue — grows significantly in Year 2+

Processing & Value-Add Services

3%

Wire stripping, sorting, baling — increases smelter payout by 10–20%

Full Business Plan