Serve the rapidly growing agricultural industryThe Business
The Company extracts, produces and commercializes dolomitic limestone in Tocantins, Brazil for use in fertilizers, and it is looking to expand to agricultural markets in other adjacent states. The Company is a main player in the north and northeast regions of Brazil with 30% of the market-share, and the quality of its limestone is highly regarded by its customers. The Company?s managment team has more than 20 years of experience, and manages 135 employees. The mine consists of:
- Total reserves of 500 million tons with many years of mine life;
- Two mines in exploration with total reserves of 340 million tons and 600,000 ton annual production;
- One mine in start-up phase with total reserves of 50 million tons;
- Two registered deposits with reserves of 100 milllion tons;
- A logistics operator.
Market
Agribusiness in the region is diversified: soy, sugar cane, corn, cotton with projections showing a doubling in size in less than 10 years, which would mean a 100% increase in demand for limestone. Through its access to the nearby station of a newly-constructed railroad, the Company will have a strategic route to deliver its products to the state of Mato Grosso, the largest soy-producing state in Brazil, as well as the ability to spread its presence in the north and northeast regions.
The Company is fast-growing with excellent margins with EBITDA ranging from 26% to 36%. Revenue in 2008 was about USD16 million and is projected to be USD34 million in 2011.
The Company?s owners are seeking investment funds to expand the business operations and open up new mines.
Sector: MiningSegment: Mineral FertilizersRegion: BrazilFinancing Size: $5m to $20mContact: Adeina Cookenour
Company: Trade Brazil CompanyTelephone: +55 24 8834 3808Email: [email protected]