A) Low Cost of Perlite
The first reason is the price. We will provide large volumes of perlite at a cost lower than any historical perlite price.
Currently, commercial Perlite distributors sell Perlite by the bag. At Home Depot, an 8-quart bag of Perlite (Miracle-Gro) costs $4.786 or about $.75 per lb ($1500 per ton). The wholesale price of agricultural perlite is approximately $400 per ton. Our pricing to farmers will be much more reasonably priced at $130 per ton.
Iron ore processing equipment (from excavators to furnaces) is almost identical to perlite processing. We eventually expect to produce and deliver 10 million tons of perlite per year to the Central Valley farmers (remember, the current U.S. production of perlite is ½ million tons per year, so we anticipate increasing that by 20 times). The economy of scale improves efficiency and so it will be possible for us to produce horticultural perlite for the market at $70 per ton and when we sell for $130 per ton, there is sufficient room for profit and other unanticipated costs.
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