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Forestlumps is a global company utilizing the BUSINESS INCLUSIVE approach to bridge local producers of the Central European Balkans forest to the United.

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Presentation on theme: "Forestlumps is a global company utilizing the BUSINESS INCLUSIVE approach to bridge local producers of the Central European Balkans forest to the United."— Presentation transcript:

1 Forestlumps is a global company utilizing the BUSINESS INCLUSIVE approach to bridge local producers of the Central European Balkans forest to the United States Elite BBQ cultures niche market. Forestlumps is a global company utilizing the BUSINESS INCLUSIVE approach to bridge local producers of the Central European Balkans forest to the United States Elite BBQ cultures niche market. We are bringing product to the market produced from virgin forest European Beech- wood feedstock in modern Twin-Retorts - our overall goal of BUSINESS SUSTAINABILITY {PEOPLE – PLANET – PROFIT}. We are bringing product to the market produced from virgin forest European Beech- wood feedstock in modern Twin-Retorts - our overall goal of BUSINESS SUSTAINABILITY {PEOPLE – PLANET – PROFIT}. Final product sample mock-up Currently seeking Capital Partners.

2 TWIN-RETORTS have two chimneys with vent ducts that transfer the Exo-Thermal 600 degree (centigrade) flue gases to the next retorts in tandem and / or the pre-Dry pre-Heat process line.

3 The verticle loading Twin-Retorts have a two vessel capacity. Each cylinder processes in an alternating cycle, heated by or supplying the exo-thermal heat from syn-gasses burned off in the lower common furnace chamber.

4 Forestlumps will positively affect the Profit levels (well above 30% to 40%) based on our utility maximizing expectations. Profitable Investment and Operations of Twin-Retorts have five Key Contributing factors. Forestlumps projections are: (-20%) for Investment Cost, (-10% to -15%) for Operations and Management Cost, (+50% to +250%) for Capacity of Processing Charcoal, (+25%) for Fuel (feedstock) prices and (+50% to 200%) for Market Price for Charcoal.

5 Non-formally educated villagers anywhere (as in Africa and China) can operate this equipment. Wood processing is simple, pre-Drying and pre-Heating is rudimentary work. Care by management and foremen must be concentrated on the Furnace and Vessels temperature. Safety cut-offs are both manual (2 nd ) and automatic (primary is built in). Normal procedural safety precautions must be taken with the high temperature extraction of the vessels, opening of the ovens and vessels and handling of the final product. Fresh charcoal is subject to spontaneous combustion.

6 Pollution from 1000 s of antiquated Balkan kilns is extreme. Tons of tar and wood vinigars flow from these kilns into the ground water and streams which are the only sources of potable water for the indigenous people. The air pollution is horrible but worse for the individual that stocks the antiquated kiln. Ten years on this job and you are a walking dead man. One Twin-Retort annually will displace 46 kilns and re-employ equally the same people.

7 The most perfect sources of carbon for active carbon comes from hardwood sources. Tons (in massive quantities) are never salvaged. Modern operations of Forestlumps will never have any lost waste. All the dust, fines and small pieces (<1.5cm) will be sifted, packaged and sold to active charcoal operations or soil amendment.

8 Europes best charcoal has come from this region since the Thirteenth (13th) Century. These kilns-men are multi-generations of families, even whole villages that specialize in charcoal. Forestlumps unites their trade-knowledge and their un-harvested forest waste with our human resources and technology to join the OLD WORLD with the NEW WORLD using Twin Retorts.

9 Europes finest charcoal, (OLD WORLD since the 13 th century - for the NEW WORLD) The new proto-type BOXED BAGGED packaging will have a Kraft paper bag for the internal containment of dust and fines. Strategically reduced to nominal amounts (less than <5%) by sifting during the final inspection packaging process at the Pack Facilities in the Port of Tampa.

10 USA, Hardwood Lump Charcoal brands are plagued with production, transport and handlers damaging the product. Consumers are terribly disappointed with the charcoal SIZE distribution. USA, Hardwood Lump Charcoal brands are plagued with production, transport and handlers damaging the product. Consumers are terribly disappointed with the charcoal SIZE distribution. Small and Fines (the size distribution) is more often the largest amount (40 to 70% small pieces and fines) Small and Fines (the size distribution) is more often the largest amount (40 to 70% small pieces and fines) Forestlumps will provide regularly through hand packing, constant quality control and BOXED BAGS (for ultimately no product damage) standard issue Highest Quality Lump with GREAT SIZE distribution; Fines (under 5%), Small (5% to 10%), Medium (>50%) and Large (>30%). Forestlumps will provide regularly through hand packing, constant quality control and BOXED BAGS (for ultimately no product damage) standard issue Highest Quality Lump with GREAT SIZE distribution; Fines (under 5%), Small (5% to 10%), Medium (>50%) and Large (>30%).

11 Hardwood Lump Producers - common mistakes - feedstock from PROCESSED wood-waste. Hardwood Lump Producers - common mistakes - feedstock from PROCESSED wood-waste. Many contaminants are introduced and kiln dried processes extract all the original smoke and flavor relevant elements that can make a lump charcoal tasteless, smokeless and benign. Many contaminants are introduced and kiln dried processes extract all the original smoke and flavor relevant elements that can make a lump charcoal tasteless, smokeless and benign. The BBQ cultures around the world are having to add smoking wood chips and even liquid smoke to get flavor. The BBQ cultures around the world are having to add smoking wood chips and even liquid smoke to get flavor. Forestlumps provides you with precision carbonized lump virgin charcoal that has just the right smoke and flavor. Forestlumps provides you with precision carbonized lump virgin charcoal that has just the right smoke and flavor.

12 European Beech-wood, our virgin feedstock, is TOTALLY UNPROCESSED. European Beech-wood, our virgin feedstock, is TOTALLY UNPROCESSED. We get our 100% PURE and NATURAL wood excess from the timbers extracted for beech furniture industry harvest. We get our 100% PURE and NATURAL wood excess from the timbers extracted for beech furniture industry harvest. The excess stumps, tree tops and large to small branches are what we utilize for our primary feedstock. The excess stumps, tree tops and large to small branches are what we utilize for our primary feedstock. There is annually over 1.5 million cubic meters of harvest in 1 of the 3 Western Balkan sectors we are currently working in. There is annually over 1.5 million cubic meters of harvest in 1 of the 3 Western Balkan sectors we are currently working in. Over 1M m³ is available just as bio-fuel for our renewable energy charcoal production. Over 1M m³ is available just as bio-fuel for our renewable energy charcoal production. All forest activities are sustainably harvested and are part of the WORLD FORESTRY ACCOUNTABILITY effort. All forest activities are sustainably harvested and are part of the WORLD FORESTRY ACCOUNTABILITY effort.

13 YearRegular BriquetteInstant LightTotal BriquettesLump Charcoal 1993703,708105,232808,94017,577 1994722,966117,161840,12719,217 1995700,221123,491823,71218,850 1996734,850134,550869,40031,088 1997731,011152,737883,74837,854 1998718,596179,349897,94542,247 1999707,571204,632912,20347,657 2000690,798248,969939,76780,000 2001670,000250,000920,00083,000 2002700,000266,500966,50091,000 2003709,200277,750986,95095,730 2004675,000252,000927,00098,500 2005680,000257,000937,00099,200 2006640,800253,250894,050100,000 2007640,000244,000884,000110,100 2008661,500236,000897,500113,000 2009662,800245,400908,200110,000 2010670,700250,100920,800 114,200 2011651,300239,600890,900 113,260 Charcoal Shipment Statistics 1993 – 2011 Charcoal Shipments (Tons) 1993 – 2011

14 YearRegular Briquets (20 lbs)Instant LIght (20 lbs)Lump (10 lbs) 2000$6.23$10.99$5.00 2001$6.93$11.22$5.00 2002$7.14$11.32$5.42 2003$7.30$11.35$5.44 2004$6.62$10.99$5.48 2005$6.50$12.00$5.50 2006$6.80$13.23$5.75 2007$7.00$14.25$5.80 2008$7.40$14.85$6.00 2009$7.40$14.85$6.75 2010$7.72$15.38$6.87 2011$8.06$15.59$6.88 Average Retail Prices for Charcoal Products 2000 – 2011

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18 In determining Forestlumps valuation we take into account the effect of all commitments to issue shares; the fully-diluted number of shares. In determining Forestlumps valuation we take into account the effect of all commitments to issue shares; the fully-diluted number of shares. No unconditional or contingent commitments to issue shares were given - No options or warrants. No unconditional or contingent commitments to issue shares were given - No options or warrants. No conversion or preferred shares are exchanged for debt or equity. No conversion or preferred shares are exchanged for debt or equity. 60% of shares are reserved (counted as part of full-dilution) for the key management M. Taylor 60% of shares are reserved (counted as part of full-dilution) for the key management M. Taylor 7% for other employee stock options 7% for other employee stock options 33% is available for Private Equity Fund Partners 33% is available for Private Equity Fund Partners

19 As entrepreneurs we are looking for terms offering Thirty-three percent (33%) of our company for Pre-Revenue Start-Up financing ( $150K). As entrepreneurs we are looking for terms offering Thirty-three percent (33%) of our company for Pre-Revenue Start-Up financing ( $150K).

20 The pre-money valuation of ($450K) is the value we put on our company (10,000 fully diluted shares) before getting the capital ($150K) we seek. The pre-money valuation of ($450K) is the value we put on our company (10,000 fully diluted shares) before getting the capital ($150K) we seek. Computed: We multiplied the fully-diluted shares immediately prior to the proposed financing (10,000 fully- diluted shares) by the price per share of the proposed financing ($45/share) to yield the pre-money valuation ($450K). Computed: We multiplied the fully-diluted shares immediately prior to the proposed financing (10,000 fully- diluted shares) by the price per share of the proposed financing ($45/share) to yield the pre-money valuation ($450K). We add the proposed financing amount ($150K) to the pre- money valuation to get the post-money valuation ($600K). We add the proposed financing amount ($150K) to the pre- money valuation to get the post-money valuation ($600K).

21 Pre-Money {$150K} for 33% shares Pre-Money {$150K} for 33% shares = Post Money Valuation ($600K) = Post Money Valuation ($600K) Pre-Money VALUATION $450K 10,000 shares $45 / share Private Equity $150K Post Money Valuation $600K For 33% shares

22 It is important to keep in mind; early stage investors will likely have their equity interest in our company diluted (made smaller) by later investors. It is important to keep in mind; early stage investors will likely have their equity interest in our company diluted (made smaller) by later investors. We intend to raise Venture Capital: If our early stage Private Equity Funders invest $150,000 at a pre-money valuation of $450K (and thus end up owning 33% of the company), and then a venture capital firm invests $1.25 million the following year at a pre-money valuation of $1.25 million, the original Private Equity Funders / investors will now own only half as much of the company, even though the company value has increased more than two-fold. We intend to raise Venture Capital: If our early stage Private Equity Funders invest $150,000 at a pre-money valuation of $450K (and thus end up owning 33% of the company), and then a venture capital firm invests $1.25 million the following year at a pre-money valuation of $1.25 million, the original Private Equity Funders / investors will now own only half as much of the company, even though the company value has increased more than two-fold.

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24 A Full Excel Spread Sheet is available on GUST, Forestlumps profile. In summary we state: REVENUES are projected$2200 / metric ton (mt) REVENUES are projected$2200 / metric ton (mt) OFFSHORE PROFITS$750/mt Dedicated to Funder's Security OFFSHORE PROFITS$750/mt Dedicated to Funder's Security COST of GOODS SOLD$895/mt Dedicated to Production COST of GOODS SOLD$895/mt Dedicated to Production U.S. BUDGET$555/mt for U.S. Sales-Mkt-Promotions U.S. BUDGET$555/mt for U.S. Sales-Mkt-Promotions Yr.1Yr.2Yr.3Yr.4 1100mt5000mt11,000mt.22,000mt REVENUES @ $22002,42011,00024,20048,400 PROFITS @ $7508253,7508,25016,500 CGS @ $895984.54,4759,84519,690 US Budget @ $555610.52,7756,10512,210 (All amounts are posted in 1000 U$D)

25 1 st OPTION 3 years CASH BUYOUT 3 years CASH BUYOUT From Retained (Captured) Profits 12M+ U$D From Retained (Captured) Profits 12M+ U$D 2 nd OPTION Within the First Year (roll-into-the) Within the First Year (roll-into-the) 1.25M U$D Venture Capital position 1.25M U$D Venture Capital position 3-5 years CASH BUYOUT 3-5 years CASH BUYOUT From Retained (Captured) Profits 12M to 16M U$D From Retained (Captured) Profits 12M to 16M U$D


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