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Not Just Another Rubber Manufacturer, Magnum
d’Or Resources Is Using Their Unique Process For Recycling Scrap Rubber To
Produce A Variety Of End Products While Reducing Greenhouse Gases
Basic Materials
Industrial Metals & Minerals
(MDOR-OTC: BB)
Magnum d’Or Resources Inc.
1326 South East 17th Street, Suite 513
Ft. Lauderdale, FL 33316
Phone: 305-420-6563
Joseph J. Glusic, BSME
Chairman and CEO
Chad Curtis
Founder
Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
Published – February 22, 2008
BIO:
Joseph J. Glusic has spent the majority of his career involved in activities
associated with the production, monitoring, processing and ultimate disposal
of hazardous and/or radioactive wastes. He has been an employee of both
private and public companies and consulted to a variety of institutions that
included public, private and governmental agencies. Clients included nuclear
utilities such as Commonwealth Edison Company and Northeast Utilities, as
well as, Bechtel Nevada and the Department of Energy (DOE). His
responsibilities have included design, operations, management, and principal
ownership of companies associated with these types of functions. In
addition, Mr. Glusic’s experience has allowed him to evaluate and develop
numerous processes and technologies utilized in the handling and processing
of various types of waste streams. He has also written and developed
technical and regulatory documents supporting testing, operations, and
reporting requirements. For the last several years Mr. Glusic has also been
involved in the acquisition, financing, marketing, and sale of real estate.
He has a degree in Mechanical Engineering from the University of Illinois
and has attended various academic and professional educational programs
throughout his career to enhance his technical and managerial skills. He has
been licensed by several government agencies, as required to perform his
primary functions and achieve his goals.
BIO:
Chad A. Curtis, Chairman of Advisory Board:
Mr. Chad Curtis became the President, CEO, Director and Treasurer of the
Company on December 20, 2006. From December 20, 2006 through December 30,
2007 he headed the company and was instrumental in acquiring the licenses
and technology the Company possesses today. From January 2000 through April
2001, he was employed by First Union Securities as a Money Manager and
Financial Advisor. From April 2001 through December 2004, Mr. Curtis was
associated with J.P. Turner & Company in the same capacity.In April 2005, he
was retained by Pointe Capital as a Money Manager and remained in that
capacity, on a limited basis, through April 2006 when he became associated
with Markwood Capital, a division of Acosta Financial Services, where he
remained until August 2006. Mr. Curtis will continue as a consultant to the
Company for the immediate future.
Company Profile:
Mission
MDOR through its leadership, research, and development is actively pursuing
its goal of becoming the industry leader in recycling technology, turnkey
plant solutions & operations, and global waste management. We believe that
by applying our patented processes to a broad range of customers across
numerous industries we can provide much needed ecological benefits to most
of the world?s industrialized nations.
Business Strategy
MDOR?s business strategy is 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. MDOR
will use its licensed patented processes to freeze scrap tires, remove
fibers and metal wire, and produce crumb rubber sorted into different mesh
sizes for use in various rubber products. MDOR will also, through its
patented processes, produce ultra fine rubber powders for the production of
Elastomeric Alloys (EAs). These key alloys are the essential building blocks
for final end user products that meet established ?Green? standards.
Corporate Overview
The Company now holds the patented processes in which waste rubber (tires
and like materials) is reduced, without excessive costs, to a powdery
substance in industrial quantities between 0 and 100 microns. This substance
has been proven capable of bonding with thermoplastic materials to produce
an elastomer with broad commercial applications. This process not only
provides a new and expansive methodology for the recycling of rubber, but
allows the further production of TPEs at a discount of up to 40% below
present production cost. Leading international manufacturers will provide
equipment and machinery for use in the processes at our future plants. The
Company will also reserve all rights to purchase rubber powder produced from
each plant built. We will continue to develop, modify and redesign recycling
equipment in order to best suit the needs of our clients.
CEOCFO: Mr. Glusic, you are fairly new as
CEO of Magnum, what attracted you to the company?
Mr. Glusic: “I have actually been on the
board for over a year, so I am not a newcomer to the company but I am a
newcomer to the position. I actually took over as chairman and CEO of the
company in January 1st of this year (2008).”
CEOCFO:
What is your vision as the new CEO and how do you get there?
Mr. Glusic: “The last six weeks have
been, as you can see from what has happened both with the stock and from
some of our announcements, incredible to say the least. We are moving
forward very quickly. As a synopsis on the company, we have exclusive rights
to certain types of technology that have not been broadly used in this
country for the recycling of scrap rubber. The process and potential
application is phenomenal. We can use the end-product in a variety of
different applications. The future of the company is extremely bright; it is
like that 80’s song, ‘the future is so bright you have to wear shades’. On a
daily basis, we have enquiries from a number of companies for joint
ventures. We are in the process of going through hyper- expansion, and are
dealing with financiers on a daily basis. To be honest I don’t know where to
begin there has been just so much interest. We are going in a number of
directions at the same time. Our goal is to take the company through this
growth phase as quickly as we can and get into production, get our products
to market so that the consumers can see what we are doing. Right now, there
might be some misunderstanding by the market as to what we are doing. They
may think that we are the same as some of these foam rubber manufacturers
that are on the market, when in fact we are very unique, very high-tech and
we are going to be taking the market with a vengeance and by storm.”
CEOCFO:
Please tell us about the basic technology.
Mr. Curtis: “I want to quote something
because a lot of people were not aware of what was going on with the company
and from the previous Press Release dated February 6th we stated
that “We are now accelerating our rapid growth in the green market”, which
is one of the hotter markets right now. We have worldwide patented
technology and are on a mission to eliminate global pollution generated by
used tires, and other scrap rubber constituents in land fills. The thing
that I want to emphasize the most is that technology is one of the keys to
Magnum’s processes, as well as, the high degree of quality control
maintained during the manufacturing cycle. It is one of the most unique and
efficient cryogenic processes available today. The process begins with
discarded scrap tires which are shredded. The shredded tires and rubber are
frozen in control fashion in order to properly separate the rubber, textile
and steel. This also allows the grinding of hard rubber into very fine
powder. People are starting to realize that we are a bit different because
we do not just take these tires, grind them up and then use them for
landfills or cement kilns. Our recycling is 100% closed loop and we are
actually breaking these tires down to actually use them as another reusable
products.”
Mr. Glusic:
“The story is a wonderful story. It is almost a closed loop where we take
what would normally be scrap product, we recycle it into a very useable
product, and that product itself can be recycled again and reused many
times. Not to mention the fact that our product is considered a “green”
product so we qualify for green initiatives. The other part of it is that
since our end products replace scarce natural resources like virgin rubber
and virgin plastic for every pound of scrap material that we actually
process, we actually produce a pound of new raw material. That new raw
material actually replaces virgin rubber, of which there is a shortage of in
worldwide, as well as, plastics, which come from oil. Essentially, for every
pound of product we produce we save a pound of oil and we do not waste any;
we do not put anything back into the ground. We take scrap and turn it into
a very useful product. One additional thing that was previously mentioned is
that what is really unique about our product is that we take a waste
product, like a tire, or we can do it with plastics and other materials
typically like a rubber tire, we chop it up and grind it into very fine
particles. The process itself is somewhat unique, although there are similar
processes out there, but where we are different is that our quality control
and the type of end product that we produce is so much more pure and finer
than what is currently available. The key to this is the fact that we can
grind the end product down to a size that is pretty much unavailable on the
market by anyone else today. We can produce super fine powder under 50
microns that can be used to mix with other type of constituents to make a
whole range of new types of products.”
Mr. Curtis:
“Not only does our process bring it down to such a small particulate size,
but the purity level is maintained at a high level, which nobody else is
really doing worldwide. The Chinese may come close but we are keeping it ten
times more pure. Once you bring it down to a toner powder type level, almost
like talcum powder it opens up a whole new range of applications. Right now
in the world tires are a major problem. In America alone there are 290
million tires sitting dumped, sitting buried beneath the ground illegally
and now with the global warming you cannot dump them anymore.”
CEOCFO:
What is the cost factor in your process and how does that fit in?
Mr. Glusic: “Our business model was
based on competing in the market at current or less than current prices of
the products that we are going to substitute. From the company’s
perspective, we are actually sitting in a very wonderful position because we
base the model on being able to come in and undercut costs for end product
uses, certain types of plastics and certain types of thermoplastic
elastomers. With the current market the way it is, and the fact that we are
a green company and we treat recycled materials, we think now we may even be
able to sell our products at a premium to the market because more and more
companies are going for the green approach. They want to make sure that the
products they use have a recycled type of component. There may even be some
government initiatives that are going to force different companies, like car
manufacturers, to actually use more and more recyclables. Therefore, that
puts us in a much better position. Not only will we not have to compete with
current manufacturers based on price alone, we may actually be in the
position where we could sell our products at a premium to the market.”
CEOCFO:
Please tell us about the facility you are launching in Canada.
Mr. Glusic: “The facility that we are
going to launch in Canada will be the first one for our company in North
America and it will be a state-of-the-art cryogenic plant with a TPE
addition. What that means is we are gong to take scrap tires from their
whole waste product, process it through our main facility, turn it into a
rubber powder of some type and use that rubber powder to be mixed in some
sort of proprietary formulary into a new substance like a new plastic, and
produce an end product with it. With regard to the end product, we haven’t
decided what it is going to be up in Canada but it could be anything from
bumpers to plastic PVC pipe replacements to, snow mobile tracks. We can
actually recycle tires back into a tire, not 100%, but we can use a higher
percentage of recycled rubber which is well above and beyond the norm.”
CEOCFO: Is
it just a matter of what there is a market for at any given time, how do you
decide what to do with the product?Mr. Curtis:
“Not only that but the patented technology that we have is one-of-a-kind
worldwide. There are other people that will obviously get into our market
and they will figure this out. We figure we are still a few years ahead, but
the whole thing is somebody will figure out a way to do this the way that we
did. However, we are going be a step above and beyond that. For our
shareholders and for the market and to secure some serious growth over the
long-term we are starting to patent all of the applications too. I think
that is what I want the shareholders to understand, that it is not just a
technology issue, because guess what? Somebody will discover how you did it
one day. The question is do we take down 70% of the applications worldwide,
30%, once we patent those applications we now control that market? That is
when you become a monopoly and that is how companies like Microsoft did
well.”
Mr. Glusic:
“In a nutshell, we are ahead of the curve, we are going to gain as much
market share as we can but like Chad said; because of our ties to the
research of people back in Germany, they are continuously updating the
processes, patents, and the know-how. We are constantly refining our process
to make better products and find better applications even though today
somebody might say oh look at what they are doing we can replicate that
maybe a year from now. Well a year from now we are going to be on a whole
different plane, a whole new line of products that haven’t even been
mentioned yet.”
CEOCFO: You
also have other things going on in the company as far as looking at
acquisitions or recycling; please tell us about some of the other factors
for Magnum?
Mr. Glusic: “I would love to tell you
but it wouldn’t be fair to lay out everything we are doing. However, I would
say in the next two to six weeks there are going to be several announcements
of joint ventures.”
Mr. Curtis: “There will be joint ventures,
partnerships, and really right now there are a lot of people that want to
partner up with us. The return on investment or return on equity is very
attractive.
Mr. Glusic:
We would have also pursued working with some of the clean-up funds both here
in the US, and abroad, but the government is so slow in reacting. We are
still pursuing it also so we will probably do some clean-up activity with
government entities, but because they are slow in response, we need to move
forward in the private sector and get this thing really rolling. We are
currently in negotiations for absorbing a facility so we can get our
production up as quickly as possible. The Canadian facility is over a $50
million project; it is extensive and complex and it will take probably
fourteen to eighteen months for it to be at full production. We have
contracts pending now that have to be fulfilled and we are moving forward
with some of our partners. We are going to look at acquiring a facility for
our own production here in the next two to six weeks.”
Mr. Curtis:
“There are certain places for instance in New York, and another gentleman, a
large accredited investor has many acres in Connecticut. Several people have
facilities or they are already recycling tires without a hybrid technology
as we have, but they want to team up with us. Therefore, they are saying ok
here Magnum d’Or, we already have X-amount of acres, we have tires coming
here; can we partner up, can we do a joint venture with you? We will put up
tires, land, part of the funding; we want to use your technology and do a
joint venture.”
Mr. Glusic:
“Another thing worth mentioning, is that one of the things the market
misunderstands is that this industry has a bit of a stigma. Everybody thinks
that it is a high-volume, low-margin type business. In most cases it is.
Many companies will just processes these scrap tires for our government to
do these cleanup sites. They make most of their money on the front end; the
government will pay them to get rid of the tires. Whatever the end product
results in does not matter because they are making most of their profit on
the front side of it. Most of the end products that you see used today are
somewhat archaic. You will find granules, rubber filings and things you find
in playgrounds and in asphalt. Those are good products, but the problem is
the yield, because the profit on that is very low and you have to produce
huge volume. Our product, because the end product has such a wide variety of
uses and because it can be combined with other materials, yields a very
significant profit margin. In addition, this is where I think we have a bit
of a stigma, until we have a plant up and operating the markets just don’t
realize our potential. They think we are going to be just another scrap
rubber company, but we are way beyond that.”
CEOCFO: What is it about Magnum d’Or and
the management that we know you are grounded and able to deal with all the
opportunities?
Mr. Glusic: “If you look just strictly
at the people who are involved with the company currently, we have a
tremendous amount of experience in this industry and outside this industry.
We have deep backgrounds in management experience; our board of directors is
very well seasoned and as we expand and bring in revenue, we will bring in
some of the most talented people we can find to our company. We will post
our business plan on our website; we will put more investor information on
our website. Currently the experience we have on staff right now is
significant and we will be able to attract quality people as we move
forward. This is not a quick profit company, although I think you will see
some quick gain in our stock and some profits coming in here in the not too
distant future. However, we are in this for the long haul, we will build new
products, and we want to be a leader in this full closed circle of taking
waste and making quality end use products.”
Mr. Curtis: “When we make these
products, we take the crumb rubber, the patents, and trade secrets and
performa seven step process where we line up our machinery, use our
technology and produce a product in such a way that it makes us one of a
kind. We can also take crumb rubber and the powder rubber and use an
additive to make various end products. These end-products are hybrid TPE or
thermal plastic elastomeric alloys. Furthermore, we don’t have to use
polypropylene because now we are taking it to a rubber TPE. The end product,
instead of being a thermal plastic elastomer, which is made out of a lot of
oil or polypropylene, is much less expensive.”
Mr. Glusic: “We call it an alloy so we
are actually making a hybrid alloy out of the TPE mixed with our products.”
Mr. Curtis: “Our associates and partners in Germany, Spreelast Ag,
have done testing with Mercedes Benz. As just one example, they have taken
the engine mounts that Mercedes was making and using in their cars in
Germany, and replaced it with an equivalent mount made from a TPE alloy that
was developed specifically for that application. Spreelast’s laboratory did
all of the testing and was actually capable of taking crumb rubber and
putting it through their patented technology and coming out with an end
product which was like the original Mercedes engine mount. However, it came
out better because it is was a rubber TPE, being more flexible, more
durable, and lasts longer, but didn’t require use of polypropylene. It also
saved Mercedes roughly around 40%. With refinement, it could save up to 70%.
Mr. Glusic: “In the market today, we initially wanted to compete on a
level or more competitive scale so that we could get our foot in the door of
several OEM manufacturers. Because of the current nature of things, it is
possible for a company to look at us and say, “hey, you can provide
something cheaper and better”, but in reality we may actually be able to
charge a premium for our products because of the “Green” factor. Now instead
of having to come in and compete at a lesser price, even though we will be
profitable at that price, we may be able to charge a premium for our
product, which will make our profit margins go through the roof.”
CEOCFO: In closing, why should potential
investors be interested now?
Mr. Curtis: “The best thing in the
market is being in the right place at the right time. The way you get there
is to find something unique and an opportunity that nobody else has where
the demand is high and you jump on it. What I mean by that is we are the
only ones that do what we do in the world. We are the Ferrari compared to
the Cadillac, so we are high-high end and the demand happens to be 290
million tires sitting around the US where the government will actually help
us, grant us, fund us, tip us, to basically take our product that we get for
free and make a healthy return on it. In that sense I would think this would
be a very explosive company to be in since we are just in our infancy
stage.”
Mr. Glusic:
“It is like looking back at the beginning of Microsoft, Google, or Nike. The
product may not look like the next best thing since sliced bread, but it
certainly has the potential. In addition, we are certainly in the position
where we have the same type of potential as companies like that. I don’t
want to say we are going to be the next Microsoft, but we are certainly in a
position of explosive growth to be like that if somebody recognizes the
opportunity that we have right now.”
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