The marketing of the Company's mined precious stones is three-fold:
Firstly, the Company will inventory the majority of its stones. Certain of the inventoried stones will be in a finished state and certain of the inventory will be in a raw state. The intent of inventorying a large percentage of production is to firstly not create an excess of product on the world market so as to devalue the retail price of the product and secondly to create a large enough inventory of stones so that the company will be in a position to use the inventory as collateral for any loans required in order for the company to meet its long term growth plans.
Secondly, the Company will use it's inventoried production to either sell large quantities to particular buyers in a rough or finished state and to enable the Company to have sufficient reserves of product to withstand any run of the retail price.
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Thirdly, the Company will finish certain of its product to a jewelry state for sale over its Internet Shopping Mall, "RodeoIsland.com" and Club Rodeo. By eliminating the "middleman", the Company's net margins will be higher than could otherwise be expected and that the success of said sales will attract clients and consumers to the site thus increasing the profitability of the site in its own right.
Storage of precious stones
The Company will utilize five storage locations for its mined precious stones: The first site will be in the Democratic Republic of Madagascar where the rough stones are extracted from the various mine sites and will be stored pending shipment to other sites. The Company has a highly trained Security Group, familiar with Madagascar and the mining industry, to safe guard the product in Madagascar. The cost of storage at a Company controlled storage location in Madagascar is far less than moving the product to world markets immediately upon being extracted and the security at the Company storage site is more protective than other sites available for raw product. Storage in Madagascar also affords the Company savings in Transportation Costs as controlled transportation of gems required for the Company's long-range goals will only be shipped off the island.
The second storage site will be at the precious stone finishing facilities in Israel, Thailand or Sri Lanka. Only those stones required by the Company will be shipped to these facilities for finishing. While at the finishing facilities the gems are insured by both the Company and the finishing facility for the finished value of the stones.
The third storage facility will be at the Company's New York Marketing Office, Total Gem Management, where sufficient finished stones will be inventoried in order for the Company to create a presence in New York and to generate sales from which the Company's web site will benefit as awareness of the Company's product becomes well known.
The fourth storage site will be the Company storage facility in Calgary, Alberta, Canada where a clearing house will be created to enable the Company to meet its Internet retail sales and to store sufficient stones to conclude any financing or large scale sails.
The fifth storage site will be in Israel at the vaults of Menavi International Ltd. This storage site has been selected for primarily finished stones in order for the Company to take advantage of the Israeli stone market and the advance cutting techniques only available in Israel.
The storage in Israel is under construction -> something in the works?
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