The Company owns four mineral Properties in the State of Bahia consisting of gneiss and granite that are suitable for ornamental use for flooring, paving, funerary and other building applications. The aesthetics of this stone reinforce their suitability for wide utilization.
Prospecting and research works started in 1994 and, at the present time, the mines are classified as “Production and Development Properties” with economic viability demonstrated, or in other words shovel ready. The Project anticipates annual production at 16,581 cubic meters of raw material being transformed into 547,200 square meters of processed stones. A general view on the Project’s environment shows three issues that enhance feasibility: (1) a growing demand for granite by the building industry, (2) the mineral reserves exceed the amount required by the Project and the (3) settlement of a production facility assembled with the most modern technology available in the stone industry.
A feasibility report based upon a 10-year cash flow with capital cost of 8.5% and investment of USD 24m, estimates a 39% IRR with peak annual income of USD 28m. The investment consists of machinery, equipments, building and working capital in four granite mines and one processing plant, and also may be applied to other leased mineral assets including other commodities for expansion of the mineral portfolio.