Industrial Rocks Operation

The Company is a sand, gravel, aggregate, and limestone mining operation. Royalties for two pits totaling 130 acres and over 3,000,000 cubic yards of reserve are paid to a related company which holds mining rights to land owned by the Bureau of Land Management. Reserves are expected to last 15 to 20 years. Product extracted, crushed, and transported includes sand, rock ranging from 1 to 36 , road base, and mineral grade limestone. Customers include paving and reclamation contractors, coal mines, power plants, and oil fields. A specific type of mineral grade limestone quarried is unique within several hundred miles and is in high demand by local coal burning power plants that use the limestone in scrubbers to clean emissions. Total revenues were comprised of rock sales (54% of 2006 revenue), trucking/delivery (45%) and other (1%). - Overall sales have grown at a CAGR of 41.4% from 2004 2006 - Earnings increased from 48.6% to 51.3% of sales over the last three years. - Superior name and reputation The Company enjoys a long-standing (30+ years) reputation for excellent product quality and superior customer support. - 80% repeat business generated from strong, stable customer base. - Experienced management and staff available to remain with new ownership.