SAO PAULO, BRAZIL--(Marketwired - May 28, 2013) - Brazil Minerals, Inc. (
BMIX's producing mine, Duas Barras, received multiple bids when selling its initial lots of rough diamond and gold in the second quarter of 2013. These sales occurred in Brazil to qualified Brazilian institutional buyers. In order to broaden its reach and achieve higher prices for its rough diamond production, Duas Barras has applied for and expects a license from a Brazilian government agency allowing it to export production in as soon as two months.
Marc Fogassa, Chairman and CEO of Brazil Minerals, commented: "It is gratifying that the strong quality of the Jequitinhonha River diamond from our producing plant at Duas Barras appeals to so many knowledgeable buyers. Not only did we receive multiple bids, but we were also asked by some of these buyers if we would commit to them the entire production for the rest of this year. We are keeping our options open and have made no allocations, but it is certainly a good situation to have."
Recently, BMIX took two run-of-the-mill raw stones which were mined from its Duas Barras diamond plant and had them polished locally in Brazil and mounted as stud earrings. The economics of such value-add activity are as follows: each rough diamond sells for approximately $175 per carat; after being polished at a cost of $50 per stone, the appraised brilliant cut diamond is worth approximately $2,000 per carat.
"I believe the extreme value-add of polished stones presents BMIX a very profitable vertical to explore," Fogassa said. "The economics, as detailed in the example given above, are quite strong and would allow BMIX to further differentiate itself. Not only would we have revenues, which few young mining companies do, but we would also have an attractive business of much higher margins for a percentage of our diamond production," he added. "One day we could even sell our own polished stones online in global markets, each with its own provenance and grading certificate," he concluded.
Please visit the Company's website at www.brazil-minerals.com for further information and ongoing updates.
About Brazil Minerals, Inc.
Brazil Minerals, Inc. (
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Brazil Minerals, Inc.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of production, reserves, sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Brazil, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Brazil, general economic conditions; geopolitical events and regulatory changes, availability of capital, the BMIX's ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
CONTACTS For BMIX Marc Fogassa Chairman and CEO Brazil Minerals, Inc. 324 S Beverly Drive, Suite 118 Beverly Hills, CA 90212 USA Telephone: +1 (213) 590-2500 Email Contact www.brazil-minerals.com For Investors John Mattio SVP MZ North America 61 Broadway, Suite 3035 New York, NY 10016 Telephone: +1 (212) 301-7130 Email Contact www.mzgroup.us
