Magnum D’Or Resources Inc.
Magnum d’Or Resources, Inc.
Magnum D’Or Resources, Inc. was established to deal with the problem of waste tires in a manner that is environmentally friendly and profitable. It aims to create a closed loop with rubber compounds enabling it to be used as a raw material repeatedly without compromising the quantity or properties of the compounds.
Magnum’s “GREEN” technology provides a one-of-a-kind solution to all of the challenges in eliminating stockpiles of scrap tires and rubber scrap. To visit Magnum’s corporate website please view www.magnumresources.net
History
Magnum D’Or Resources, Inc. was incorporated on September 3, 1999, under the laws of the State of Nevada. Since its inception the company evolved through several transitional periods to its current operating mode. During its evolution, it operated as an internet information company, a junior resource mining company, and a business acquisition company. These ventures proved to be only marginally effective.
On December 20, 2006, the company was acquired by a new management group with clear intentions on becoming an industry leader in recycling technology, solid waste solutions, and automated facility operations dedicated to the production of both Retread & Custom Compounds, high quality rubber powders, thermoplastic elastomers, EPDM Automotive Components, among other key products and technologies. Magnum’s specialized process provides several varieties of recycled rubber products of variable sizes based on customer specifications and proposed end use. Generally speaking, the size and purity of the end product determines the market price for that specific product. The process that Magnum utilizes produces the finest rubber powder (microscopic) available to the market.
On September 26, 2008, Magnum entered into an agreement with SRI of Malaysia to license their advanced technology equipment and utilize SRI’s proprietary processes for the reconstitution and reformulation of rubber compounds. SRI technology enables next generation rubber processing aids and range of custom multi application compounds. Magnum, through their license of SRI’s proprietary technology and know-how developments, has access to technologies that have the potential to revolutionize the Global Rubber Processing & Next Generation Compounding Market Worldwide.
As of November 2008 Magnum commenced production to begin fulfilling its current year contracts amounting to $131,000,000.00 USD. The company has also entered into one joint venture and is currently in negotiations to provide 25% net benefits for any and all production, strategic alliances, and sub-license agreements with companies that are established within the industry, as well as, seek affiliations with major universities and research firms.
Introduction
Last year, approximately one billion tires were disposed of worldwide. Additionally, there may be as much as 3-4 billion waste tires that exist and are stockpiled in environmentally damaging landfills. Magnum aims to convert such tires into salable environmentally friendly products.
The proper and innovative use of recycled tires in manufacturing will provide for significant advantages in manufacturing costs, reduction in used tire build up in landfills and a reduction in hazards environmental effects.
Business Strategy
Magnum has the unique opportunity to provide a “Green Solution” to several of the worlds common disposal issues which includes a strategy to establish waste management facilities; design, manufacture, and sell products made with recycled materials; and institute viable solutions to the problem of recycling waste rubber. Magnum d’Or Resources produces and sells recycled rubber products, reconstituted rubber derivatives, and high quality rubber powders to various distributors and manufacturers. As a licensee of SRI’s proprietary technologies, we can recycle scrap rubber to produce a variety of end products while reducing greenhouse gases.
The Company is able to produce rubber nuggets, buffings, crumb rubber and ultra fine powders which are all used for various industrial applications. Magnum caters to two main markets, Rubber and Home & Garden. Magnum’s technology and processes optimize the grinding and purification and produces on a large scale the finest rubber powders in less than 0.250mm size. The process also is approximately 40% less expensive than available technologies. These features provide the Company with a competitive advantage.
The Company intends to develop and acquire established facilities, as a part of its future expansion strategy. Magnum seeks to establish strategic alliances with educational institutions and research firms to maintain its technological edge. Magnum expects to explore joint ventures, strategic alliances, and sub-license agreements with companies that are established within the industry to bring its technology to markets in the U.S., Canada, and China.
Corporate Overview
May 13, 2009, Magnum announced its plans to expand into the USA by acquiring one of the world’s largest tire landfill operator located in Hudson, Colorado, USA. This acquisition will secure a stable supply of raw material for the next ten years. The Company plans to immediately establish another manufacturing facility on the landfill site.
Magnum currently holds a 5 year $91,200,000 USD contract for the production of rubber buffings and a 5 year $40,000,000 USD contract for the production of rubber nuggets. Magnum is currently leveraging advanced technologies along with continued research & development to produce the next generation of retread compounds and reactivated ambient /cryogenic rubber powders for the world market.
Magnum has now positioned itself in the global arena by licensing technology from SRI in Malaysia with their capability for research & development, high performance compounding, processing aids, recycling solutions, and advanced state of the art equipment. We will also use the new Research and Training facility located adjacent to our production facility in Magog to accelerate the introduction of the full range of cost saving multi application compounds and processing aids into the North American compounding community. By working on the establishment of these specialized recycled compounds into accepted standardized raw material compounds, Magnum, through the license of SRI Activation technology, is moving away from the conventional filler and diluents market and into the value added compounds that contribute to the performance of the final product.
Magnum’s Magog Facility
Magnum’s 98,500+ square foot turnkey production facility is located in Magog, Canada. The Canadian facility is currently producing rubber buffing (mulch) in order to fulfill their 5 year $91.2 million USD contract. It will also have production lines for both rubber nuggets and powders to fulfill another 5 year $40,000,000 Million USD in current open and existing contracts. With the addition of this facility we will now be able to produce, on a large scale, ultra fine rubber powders, EPDM powders, EPDM compounds, thermoplastics, and thermoplastics elastomers to clients worldwide.
Magnum will accelerate its plan to produce high performance compounds & processing aids both in USA and in Canada at its existing Magog facility. These new additions will dramatically boost the return on investment for the products we produce. The profit margins associated with rubber powders and ancillary compounding will be significantly higher than producing conventional products like buffing and nuggets. Being further up the value and performance chain also means it will lead to substantial increase in consumption and consequent revenue.
Today, Magnum is embarking on an aggressive campaign to bring these process technologies to the market in the U.S., Canada, and Worldwide. Magog is well known as a rubber and plastics epicenter that sits in the Estrie region and in the MRC Memphremagog. The location provides quick access to several markets, such as Quebec, Canada and the United States. The Interstate 91 leads directly into the states of Vermont and New Hampshire and is close to the states of Maine, Massachusetts and New York.
Magnum’s Magog, Quebec Facility (Magnum Recycling Canada, Inc). Magnum Magog Facility has 270 ft x 30 ft of extra parking in the back for stockpiling tires as seen below.
Magnum Colorado Facility
Most recently, Magnum purchased the Colorado tire landfill. The closing took place on August 25, 2009 at which time Magnum took ownership of all assets associated with the facility. These include inventory, supplies, equipment, machines, vehicles, fixtures and fittings, land and building. Colorado is home to 1/3 of all whole waste tires in the USA, consequently Magnum now owns 100% of one of the worlds largest tire landfills, and perhaps currently the largest in the USA. Magnum has shown that it is capable to challenge itself to take on the leadership role by making solid business decisions. The move has shown that Magnum is committed to take the “Green” approach and make use of this landfill. Shortly after this acquisition, Magnum will begin to commence on removing the tires of the land by using its “Green” proprietary technology and transforming the tires to useful products. Thus creating a solid business model and cleaning the environment one tire at a time. The satellite image of the site can be viewed below:
Technology & Patents
Magnum has licensed SRI’s Next Generation Rubber Processing Aids and range of Custom Multi Application .The Company through its partner, Sekhar Research Innovation, has access to an array of processing aids, compounds, processes, and high tech rubber recycling equipments.
Magnum, through their SRI license has the ability to create custom compounds to meet specific technical challenges while effectively addressing the problem of spiraling raw material costs. SRI researchers and chemists based in Malaysia and India apply their considerable experience and knowledge to the creation of new compound solutions for tomorrow, which are solidly based on today’s science.
SRI uses its revolutionary technologies and research & development to produce a new generation of retread compounds and reactivated ambient and cryogenic rubber powders for the world market. They have formulated and tested several new high-tech methods for recycling scrap tires, although not all of them represent recycling in its original meaning. These methods differ in regard to their products, feasibility, technical efficiency and ecological compatibility. It is our goal to work with technologies that provide the optimum solutions in meeting today’s needs in a commercial and technical viable manner.
Scrap Rubber Reconstitution Technology
The Company’s technology provider, SRI has started initial production trials of their proprietary surface activation system which allows for the effective processing of large and cost effective production batches.
Usage: This significant combination of factors allows for 40% to 60% reduction of energy cost per pound processed.
Strategy: Specific trials using North American produced tire crumb stock have been carried out with very promising results which have served to accelerate the R&D program and shortened the expected timelines for planned full operational status in Magog. The next step will be the production of the final blend for Magnum/SRI custom compound in full production volumes followed by independent evaluation of properties by an independent institute.
Custom Compounds
The compounds produced will be blended with various modified formulations of virgin compound (all with raw rubber content), which will be available to manufacturers to use as a virgin compound substitution material.
Usage: These will be used as truck retread compounds, natural rubber tubes, butyl rubber tubes, natural rubber automotive components, bicycle tires, car mats, automotive components (Natural Rubber and EPDM), marine products, dock bumpers, and industrial shoe soles, to name a few.
Processing Aids & Custom Compound Process
Highly specialized processing aids will be reformulated to modify the viscosity of the activated material, which will greatly improve process ability and flow in virgin compounds without proportionate loss of properties. Proprietary equipment and processes have undergone modifications, which are now being evaluated and tested.
Strategy: The range of custom compounds will be introduced in stages to manufacturers already affiliated with Magnum. The unit is expected to have the system set for at least two grades of custom retread and one grade of EPDM generic custom compounds. This will be in addition to a Super Premium grade custom compound, which has been successfully tested and will be incorporated into the range to be used strategically.
Continuing Research and Development
We also discovered during our business planning that few companies offer a wide variety of colored nuggets and buffing. Magnum will work with a well-known company that specializes in pigments for mulch. Colored rubber mulch has become very popular for both artistic landscaping and practical gardening. So our goal is to develop a multitude of rubber mulch colors to satisfy client asking colored mulch which matches his house brick, is house vinyl, his landscaping, etc, etc.
The Company will also use the new Research and Training facility located adjacent to the production facility in Magog to accelerate the introduction of a full range of cost saving multi application compounds and processing aids into the North American compounding community. By working on the establishment of these specialized recycled compounds into accepted standardized raw material compounds, Magnum is moving away from the conventional filler and diluents market and into the value added compounds that contribute to the performance of the final product.
The compounds produced will be blended with various modified formulations of virgin compound (all raw rubber content) which will be available to manufacturers to use as a virgin compound substitution material. Some of the products for which they will be utilized are as follows:
1. Truck Retread Compounds (Very large volume and value added application)
2. Natural Rubber Tubes
3. Butyl Rubber Tubes (High Value added application)
4. Natural Rubber Automotive Components
5. Car mats (low end but volume application)
6. EPDM Automotive Components (High Value added application)
7. Marine Products and Dock Bumpers
8. Industrial Shoe Soles other activities:
9. Cryogenic Crumb Recycling and Application Solutions
10. Manufacturing Solutions related to Process Automation and Bulk Volume Processing
11. Specialized Processing Aids
Ongoing Research Programs
1. Our technology providers program is directed at increasing the speed, cost-efficiency, processing capacity and performance of existing devulcanization technologies. The program is well advanced and early application of the results is foreseen.
2. Another objective is the development of recycled elastomers into fully accepted standardized raw material compounds, not merely fillers and diluents, but value-added compounds which contribute to the performance of the final product.
3. Research into the development of new and advanced Processing Aids is another priority with emphasis on high performance and low cost. (Processing aids are materials that modify the behavior of compounds during processing, or performance characteristics of the final product. In rubber technology, processing aids have become a vital component in nearly all manufactured products, molded, extruded or otherwise)
Product Application
Tire crumb not processed into activated custom compounds also have a wide applicability in numerous industries including road and rail applications (waterproof membranes, gap seals, etc), automotive (truck bed mats, tire retreads, etc.), marine (non slip flooring, sporting, etc), construction and industrial (foundation material, roof tiles, etc), animals (mattresses for dairy cows, etc), Equestrian pavers (flooring, landscaping, etc.), packaging (filler, bags, etc), and Bulk Products & Mining (erosion control landfills, etc). While the potential margins will be much lower these applications allow for optimal utilization of the plants installed capacity and production so that process economies of scale are assured. As SRI compounds make headway into the market, the entire production will be gradually moved up the value chain ensuring maximum revenues and returns.
Commercial Implications of Magnum’s license to SRI’s Proprietary Technologies and Processes
Magnum d’Or Resources Inc. uses SRI’s proprietary technologies and processing aids to process and convert vulcanized rubber to produce customized value added natural and synthetic rubber compounds. These compounds are specifically useful in retread and automotive components. The Company will be producing high quality tire crumb in less than 40 mesh, in addition to its mulch rubber chips in the Magog facility. These rubber crumbs can be used to produce surface activated rubber powder and compounds using low energy consuming cost effective processes. The Magog operation will produce compound which will be used to substitute high value virgin compounds and allow final product manufacturers to reduce their total raw material compound cost between 5% and 14%, subject to the kind of properties that need to be achieved. We believe this will have a significant impact on an industry, which has been suffering from tight margins and increased raw material and process cost.
Value Proposition
Magnum is in a perfect position and stands to benefit largely from the rapid increase in demand for green products and technology. The Company is well-poised to capture a very large percentage of the rapidly growing global compounding industry in the near future. The Company’s strong management team, impressive order flows and growth potential in its marketplace makes the stock a valuable investment proposition.
Magnum should see continued rapid growth driven by continued growth in the Company’s order book. The acquisition of the US landfill tire and installation of new equipment in its Magog facility will significantly expand production capacity. The company believes wide applicability of the custom high performance compounds in varied industries along with its expansion plans should propel top-line growth. The robust industry demand accentuated by the government’s focus to drive green technology and products should command a higher market share. The Company expects an increase in the the speed, cost efficiency, processing capacities and performance specifications of our technology providers existing devulcanization technologies and expansions in collaboration with SRI. Growth prospects are impressive.
The increase in demand for green products and technology and the government’s stimulus for the production of environmental friendly products will be key growth drivers. Magnum remains confident about the proposed expansion into domestic and international markets. MDOR has an experienced management team lead by Joseph J. Glusic, President and CEO. He has extensive experience in evaluating and developing numerous processes and technologies utilized in the handling and processing of various types of waste streams. The company is in a perfect position to deliver on its business model, given its experienced management team.
Corporate Management
* Joseph J. Glusic, President & CEO
* Marc Boulerice, Director & Production Manager, Magnum Recycling Canada
* Larry Hogan, Operations Manager
* Carl Sobilo, Corp Facility Manager
* Bryan Brammer, Director of Corp Business Development
* Kyle Pottorff, Business Manager
* Chad A. Curtis, Founder Of Magnum
* Dr. W. Howard Chan, Director of Advisory Board
Magnum Engineering International (MEI) Team
* Curtis Basner, Operational Procedure Specialist
* Paul Miles, Quality Assurance Expert
* Thomas Hillmer, Environmental & Compliance Specialist
* Dr. Hugh Campbell, Engineering & Scientific Specialist
Staff Consultants
* Michel Boux, Engineer, Special Projects & Developments
* Don Kot, Transportation & Procurement Specialist
* Don Brinkmann, Architectural Design & Construction
* Rick Umberger, Security Specialist
Conclusion
Magnum d’Or Resources seeks to position itself as a global leader in tire recycling. The Company’s access to proprietary technology provides a one of a kind solution to the challenges in eliminating Stockpiles of Scrap Tires and Global Waste. There is a large and growing base of manufacturers that want to invest in green technology across varied industries. Magnum is poised to take advantage of this opportunity. The Company’s order book remains strong. Magnum further intends to accelerate existing production capacity by installing equipment to support the order flow as the Company rolls out its technology globally. We believe our access to an array of processing aids, compounds and processes will be the key growth drivers. We expect order flow to remain robust, reflecting the growing interest and demand in green technologies.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements contained in this document that are not historical fact are forward-looking statements based upon management’s current expectations that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. The results anticipated by any or all of these forward-looking statements may not occur. The company is not required to update its forward-looking statements. Through use of this document viewing or using you agree to hold Magnum D’Or Resources, Inc and its Officers, Directors, Affiliates, Consultants and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.