April 2012
Lustros Ltd
Lustros Ltd. is a US publicly traded company
currently trading under the symbol PWSV.
Through its subsidiary Bluestone SA (80%
ownership) that controls Sulfatos Chile SA,
Lustros Ltd. specializes in the production of
high-quality commercial grade copper sulfate
via traditional mining methods.
Through its subsidiary Mineraltus SA (80%
ownership), Lustros Ltd. specializes in the
production of copper from the treatment of
tailing (waste product of mining process).
Copper Sulfate
Higher grade copper reserves are decreasing worldwide. This
reality prompted Bluestone SA to develop a value-added product
directly derived from copper, which is copper sulfate.
One kilogram of copper yields approximately four kilograms of
Copper Sulfate.
Copper Sulfate: Uses
Copper Sulfate (CuSO4) has various
rich fundamental properties that make
it a useful commercial chemical. It is
widely used as a fungicide, herbicide
and pesticide as well as an analytical
reagent.
Increasing demand for use as a
healthy additive to animal feed to
naturally induce hunger.
A comprehensive list of uses for
copper sulfate is available here.
Copper Sulfate Market
Strong Demand for Feed Grade Copper Sulfate:
Approximately 80% of copper sulfate produced globally is made from
copper scrap that contains toxins (such as Dioxin), which are no longer
accepted by Canada and other important consumer countries.
Our copper sulfate is produced directly from mineral content and is
free from scrap pollutants making it an ideal Feed Grade Copper
Sulfate used for agricultural purposes.
There is strong interest from companies in Brazil, Canada, Colombia,
Peru, and Chile to purchase our Feed Grade Copper Sulfate in
quantities exceeding our potential production capacity.
Lustros Strategic Opportunities
Bluestone SA (Traditional Mining):
1
Mineral rock is processed in our Copper Sulfate
processing plant in Puerto Escuro, Chile. The mineral
is extracted from our own Anika copper mine or bought
from local artisanal miners.
Mineraltus Ltd. (Treatment of Copper Tailings):
2
Tailings are waste materials generated by traditional
mining. There are over 800 closed mines in Chile, 50%
of which are abandoned. Using our state-of-the-art
patented technology, we can extract copper from these
tailings with significant margins.
Lustros Ltd
1
Traditional Mining Subsidiary
(via our 60% ownership of Sulfatos Chile, SA)
Bluestone SA Traditional Mining
Raw Material Sources:
Bluestone SA owns the Anica Mine, a 25-hectare (62 acre) copper
mine.
We secured mineral rights to an additional 800 hectares in the area
(comprehensive long-term mining plan).
Artisanal miners also sell their mineral rock to the Chilean Government
at subsidized prices. Mineral rock with below 1.1% copper content is
not accepted. We can buy this lower grade material at significantly
discounted prices.
Bluestone SA Treatment Plant
Our copper sulfate plant is processing
7,500 tons of material per month and
is in the process of expanding to a
15,000 ton capacity. This will generate
approximately $25M revenue and more
than $16M EBITDA annually.
Monthly capacity of the plant will reach 40,000 tons over
a period of time.
The management team of this plant is exceptional and
has been recognized by the region’s authority in mining.
Bluestone SA Rich Land
Our Anica copper mine
includes 800 hectares of
land in a copper rich area of
Chile.
Our geologists estimate that
there could be as much as
three million tons of raw
material with a copper
density of 1% to 1.5% in our
property.
Bluestone SA Numbers
This business model assumes one
new plant every six months, with ten
active plants by FY2017.
Our prototype plants are engineered
to process 84,000 tons of mineral
rock per year. Each plan yields 4,032
tons of Copper Sulfate with a market
value of approximately $12.1MM.
These numbers include mining cost.
Acquiring mineral rock from artisanal
miners should improve the economics
significantly.
Bluestone SA Forecast
This plan assumes that every new front requires a full new plant at
$6MM each. We expect to leverage plants more efficiently.
Bluestone SA P&L
Lustros Ltd
2
Treatment of Tailings Subsidiary
(Turning Waste into Opportunity)
Mineraltus SA Treatment of Tailings
Sources of Tailings:
Every ton of copper produced generates 80 tons of copper tailings.
Chile recently enacted a law requiring all mines to present a closure
plan that includes treatment of tailings.
There are 846 mines with significant tailing deposits in Chile, 50% of
which are abandoned.
Chile produces 3.5 million tons of copper per year, with 280 million tons
of new tailings generated each year.
Mineraltus SA can clean up these tailings at a substantial profit,
charging the government for the clean-up and taking mineral rights on
the abandoned tailings.
Treatment of Tailings Numbers
Prototype Tailings Project
Total Investment
Tons of Mineral Treated
Ley (gr / ton)
Recovery Rate
Copper Content
Total Tons of CuSO4
Price per Kg of CuSO4
Revenue ($000)
Operating Cost
Administrative Cost
Closure Costs
EBITDA
Project
Six-Year Plan
$7,091
$214,217
3,600,000
0.38%
58.00%
25.00%
31,738
$3.00
$95,213
$44,367
$648
$9,000
$41,198
26,750,000
0.38%
58.00%
25.00%
235,828
$3.00
$707,484
$329,672
$4,815
$66,875
$306,122
This model assumes the implementation of a new tailings front every three
months.
For modeling purposes we have assumed a new plant for every project,
however, it is safe to assume that we will be able to leverage some of the plants
for several projects
Treatment of Tailings Forecast
Treatment of Tailings Forecast ($000s)
Assumes covering 100% of closure costs. Plan is to charge the mine
owner or the Chilean government for these costs.
Treatment of Tailings P&L
Lustros Ltd
2
Combined Forecast
(Summary of Strategic Opportunities)
Income Statement Forecast
Combined forecast ($000s)
Income Statement P&L
Our fairly conservative forecast demonstrates tremendous potential
for an extremely attractive valuation in the public market.
Balance Sheet Forecast
Management Team Highlights
Juan Carlos Camus
Gonzalo Troncoso
Chairman
President & COO
Angelique de Maison
Principle Financier
Zirk Engelbrecht
Trish Malone
Chief Executive Officer
CFO & Secretary
Our management team draws upon decades of experience and
proven success in mining, exploration, production, and finance.
Full resumes of our experienced Chilean management team are
available here.
Thank You
Contact Info:
Gonzalo Troncoso
President & COO
Phone: (909) 801-6969
Email: [email protected]