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SmallCapReview.com, A leading site for news and information on small caps, penny stocks and microcaps is adding Lustros (OTCQB: LSTS) to its list of stocks “On the Radar”.
LSTS Investor Highlights
Management – William Farley, the CEO of LSTS served as Chairman and Chief Executive Officer of Fruit of the Loom, Inc. from the time he acquired the company in 1986 through December 1999. During that time, he built FTL from a primarily domestic $500 million underwear company into a leading international manufacturer and marketer of basic family apparel with sales approximating $2.3 billion for the 1999 fiscal year. Fruit of the Loom was sold to Berkshire Hathaway Co. in 2002 for approximately $1 Billion.
Growth Industry – Copper sulfate (CuSO4) is a value-added product derived from copper ore. Demand is increasing rapidly for its use in farming and agriculture. More than 50% of current global production is made from copper scrap that contains toxins (such as Dioxin), which are no longer recognized as food-grade by Canada, Australia and Brazil, with other important consumer countries expected to soon follow.
Lustros produces copper sulfate directly from mineral-rich ore, making it an ideal food-grade copper sulfate for use in agricultural purposes. The completed copper sulfate processing plant is engineered to process 180,000 tons of raw material and yield over 8,000 tons of food-grade copper sulfate per year.
The food-grade copper sulfate market is a $1.2 billion industry and growing at approximately 15% per year. Demand for copper sulfate has been rapidly increasing for its use as a natural growth stimulant for fattening pigs and broiler chickens, fertilizers, as well as in the prevention of E. coli, listeria and fungal diseases.
Demand – There exists strong demand for copper sulfate from companies in Brazil, Canada, Colombia, New Zealand, Peru and Chile to purchase the Company’s food-grade copper sulfate in quantities exceeding its potential production capacity.
Expansion – Announced that the Company had secured the final funding needed to complete the copper sulfate processing plant in Puerto Oscuro, Chile. This final funding will complete the crushing plant, leaching pads and the remaining work needed on the Sx/Cr plant. The work is expected to take approximately 50 days to complete with revenues from the sale of copper sulfate produced at the plant expected in the next 90 days.
The fragmented copper sulfate market offers an interesting opportunity for market consolidation through synergistic acquisitions.
Claims -LSTS’ Chilean subsidiary, Mineraltus Pudahuel Ltd., has made the first required payment under the agreement with Sociedad Minera Pudahuel “SMP” for the right to use all assets and facilities at the closed mine of La Africana.
Technology – Lustros will apply revolutionary patent-pending technology to process 2.4 million tons of copper-rich tailings with the intention of producing 24,000 tons of copper sulfate.
Environmentally Friendly – The Company will restore 80.4 hectares of valuable land in the Santiago Metropolitan area. The removal of these 2.4 million tons of sulfuric-acid impregnated tailings will substantially increase the value of the affected land while improving the environmental conditions of the surrounding community.
The project, known in the industry as the “Congo Project”, has received all necessary approvals and permits from the Chilean authorities and is considered a model of responsible mining.
Shareholder Value -There are over 800 closed mines in Chile, 50% of which are abandoned, and all of them have left behind millions of tons of tailings. “Our tag line, A mine is a terrible thing to waste, is emblematic of our business strategy. We intend to extract valuable minerals from these abandoned tailings and improve the conditions of the land while adding substantial value to our shareholders,” said Gonzalo Troncoso, CEO of Lustros Inc.
Right Place, Right Time – The copper-rich geography of Chile offers several advantages including a higher copper content in the range of 1.5-3.0% compared to 0.5-0.8% for copper mines globally. Copper is also more easily extracted from the ore in Chile, generally requiring less sulfuric acid. As a result of these advantages, Chilean copper sulfate exports have grown a compound annual growth rate of 82% over the last ten years.
Variety Of Uses – In agriculture, copper sulfate is used in Bordeaux and Burgundy mixtures on the farm for the control of fungus diseases, correction of copper deficiency in soils, correction of copper deficiency in animals, stimulation of growth for fattening pigs and broiler chickens, a molluscicide for the destruction of slugs and snails.
Copper Sulfate is also used in preserving hides, tanning leather, manufacturing copper salts, preserving pulp wood and ground pulp. It is used in electroplating solutions, laundry and metal marking inks, petroleum refining, pyrotechnics, water-resistant adhesives for wood, metal colouring, tinting baths, synthetic rubber, insecticides, herbicides, anti-fouling paints, corrosion inhibitors, electrolysis and electroplating processes, fabric and textiles, flame proofing, fuel additives, glass, ceramics, cement, food and drugs, metallurgy, nylon, paper products, and pigment and dyes.
It is used as a battery electrolyte, flotation agent, pigment in paints, varnishes and has many other uses.
Profile
Lustros (LSTS) through its Chilean subsidiaries, is in the business of copper mining and the manufacturing of food-grade copper sulfate.
Lustros has a majority equity position in Sulfatos Chile S.A., which owns the Anica Copper Mines as well as a copper sulfate production project and employs a highly experienced staff of mining professionals.
Lustros, Inc.’s subsidiary Mineraltus SA is a Chilean corporation that extracts copper from the tailings (waste products) of expired copper mines to secure the raw materials to manufacture high quality, feed-grade copper sulfate.
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