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Saturday, August 15, 2015 9:38:07 AM
"Initial buyers of Hercules mortar have been small construction materials stores; some are already recurrent buyers with predictable bi-weekly orders. The Company believes that over time, it will have several additional as well as larger stores and chains as costumers. Some small amount of Hercules mortar has also been sold directly to retail buyers at higher gross margins. We believe that the local region of Montes Claros, northern part of Minas Gerais state, with a population of 1 to 2 million residents, is an attractive market for our mortar."
Furthermore, BMIX has stated multiple times that this area in Monte Claros, Brazil is rapid expanding and new schools, parks, hospitals, homes, etc are going up like crazy.
This isn't going to the most profitable venture, but Brazil Minerals is finding a way to increase cash flow, and turn a profit from a by-product they used to have to pay to get rid of. Besides Hercules will likely grow as business expands, their output at full capacity could easily grow 100% to 50,000 bags per month. This has the ability to grow exponentially.
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