VICI... environmental remediation @ 6 cents!

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VICI... environmental remediation @ 6 cents!

An SI Board Since April 2001

Posts	SubjectMarks	Bans	Symbol
1	4	0	VICI

Emcee: Arizona997	Type: Unmoderated

Introduction Market Data Compact

Missoula, Montana based Victor Industries, Inc. trades on the OTC Bulletin Board under the ticker symbol VICI. Victor Industries is a development stage company engaged in the sale and distribution of zeolite. The company’s business is primarily involved with the zeolite mineral, clinoptilolite, an absorbent volcanic ash with unique physical, chemical and ion exchange properties that has uses in agriculture, industrial and environmental applications. Zeolites act as molecular sieves or filters, which make them useful for metal and toxic chemical absorbents, water softeners, gas adsorbents, radiation absorbents, and soil and fertilizer amendments. Clinoptilolite is particularly useful in absorbing ammonia compounds and has widespread applications in agriculture.

Victor Industries extracts zeolite by utilizing independent contractors at a property in Owhyee County, Idaho. Private contractors do the milling, manufacturing and packaging. The company does not own any mining or manufacturing equipment or facilities. However, Victor does own mineral claims, as evidenced by right of title with the Bureau of Land Management, two of which are located in Pershing County, Nevada, which have not been developed, and two zeolite claims in Owhyee County, Idaho.

In fiscal year 2000, a new management team came on board and has turned what was essentially an inactive shell company into a viable operating entity. Previously, the company had been hampered in its sales efforts by inadequate funding. The new management team has enabled Victor Industries to obtain financing through the issuance of a series of convertible notes totaling $950,000 at a price of five cents per share, or the par value of the common stock. The offering was completed resulting in a receivable of $793,500 at September 30, 2000. The company received $121,500 as payments on these notes during the current quarter. The company will issue up to 19,000,000 common shares assuming that all notes are paid in full and elect to convert into common stock.

Interestingly, Victor Industries may have found itself at the right place, at the right time with the right product… a proprietary zeolite compound designed to absorb ammonia and phosphates generated by cattle to prevent nitrate and phosphate pollution of ground water supplies. On December 15, 2000, the U.S. Environmental Protection Agency (EPA) proposed strict new controls to protect public health and the environment from one of the nation's leading causes of water pollution - animal wastes from large, industrial/agricultural feedlot operations. EPA Assistant Administrator for Water, J. Charles Fox, stated, "Wastes from large factory farms are among the greatest threats to our nation's waters and drinking water supplies. Today, EPA is taking action to protect public health and the environment by significantly controlling pollution from animal feeding operations." epa.gov

The livestock industry has undergone dramatic changes in the past 20 years, consolidating scattered, smaller facilities into fewer but vastly larger feeding operations that result in greater and more concentrated generation of wastes. An estimated 376,000 large and small livestock operations that confine animals generate approximately 128 billion pounds of manure each year. Typically these facilities confine beef and dairy cattle, hogs, and chickens. Nationwide, nearly 40 percent of surveyed waters are too polluted for fishing or swimming. Some 60 percent of river pollution comes from all kinds of agricultural runoff, including livestock operations. Pollution from livestock is associated with many types of waterborne disease, as well as problems like pfiesteria outbreaks that have plagued the Chesapeake Bay, red tides, algae blooms, and the dead zone in the Gulf of Mexico.

The new requirements would apply to as many as 39,000 concentrated animal feeding operations (CAFOs) across the country. Today, only an estimated 2,500 large and small livestock operations have enforceable permits under the Clean Water Act. A CAFO is currently defined as having 1,000 or more cattle or comparable "animal units" of other livestock. Smaller operations may also be CAFOs if they are a threat to water quality. EPA today is co-proposing two options for a new CAFO definition. One proposed definition could include livestock facilities with more than 500 cattle or other animal units. The other proposal would require operations with 300-1000 cattle to have a permit if meet certain risk-based conditions.

In addition to stricter permitting requirements, the proposal includes several new strict controls: 1) poultry, veal, and swine operations would be required to prevent all discharges from their waste storage pits and lagoons where wastes are collected; 2) the proposal eliminates potential exemptions from permits presently used in some states; as a result, EPA expects that all large livestock operations will now have to acquire permits; 3) under this proposal, EPA and the states will issue co-permits for corporations and contract growers to ensure financial resources exist to meet environmental requirements; 4) the spreading of manure on the land owned by livestock facilities would be limited to protect water ways.

On March 23, 2001 Victor Industries announced that field trials are planned at an Idaho dairy farm of a proprietary zeolite compound. By introducing Victor Industries' proprietary compound into the animal waste streams the operator will be able to significantly reduce the amount of nitrates and phosphates going into ground water and reduce run off into streams. The company believes that mixing zeolite with the manure at an approximate seven percent zeolite ratio with the manure will result in several benefits. First, the zeolite will fix a percentage of the ammonia compounds by preventing the bacteria from breaking down the ammonia into nitrates resulting in less pollution to the groundwater. Second, offensive odors will be reduced. Third, dairy farm operators spend an inordinate amount of their productive hours trying to control the spread of the manure. Zeolite is hydroscopic, absorbing nine times its weight in water. The drier manure will likely result in a more stable manure pile, saving the dairy operator time and labor. Fourth, the composted manure is sold to plant nursery operators who normally add zeolite to their soils. The zeolite-enhanced manure may bring a better sale price to the dairy farm operator. The company’s proprietary compound provides additional benefits to the operators when the manure is spread onto cropland by slowly releasing the absorbed nutrients as the plants deplete them from the soil, reducing the need for fertilizer. The Idaho test site selected for the field trial currently has monitoring wells around the property to collect data from the ground water.

Victor Industries anticipates a large demand for its proprietary compound when the new EPA rules are in place. In addition, the company is currently engaged in marketing zeolite to the golf courses and horticulture industries. Zeolite is used primarily on golf course turf as soil amendment. As stated earlier, Zeolite absorbs up to nine times its weight in water, reducing the need for watering golf course greens. In addition, alternate soil amendments are generally organic, and decay over time, causing settling of the soil and uneven greens. The zeolite releases phosphates as the grass requires it, reducing the number of applications of fertilizer and reducing the leaching of phosphates into groundwater.

The potential uses for zeolite based compounds are just beginning to unfold. Stocksnake.com has learned recently that the U.S. Department of Energy is currently funding a research project at Ohio State University. The project involves work on artificial photosynthesis… using sunlight and zeolite molecular architecture to generate useful chemical products, e.g., generation of hydrogen and oxygen from water. Another ongoing research project is the work being done by Mobil using zeolite to convert the methanol that can be obtained from coal, natural gas, or biomass into liquid fuel or chemical feedstocks.

Though speculative and high risk, Stocksnake.com feels that VICI offers incredible upside potential in light of the EPA’s proposed tough new animal feedlot regulations. In addition, there is a wild card… public health officials, here and abroad, are scrambling to contain the spread of hoof and mouth and mad cow diseases and it appears likely that Victor’s zeolite product may offer some assistance in that effort. VICI closed Friday at 6.5 cents on volume of 1,070,100 shares. The company has 45 million shares of common stock outstanding and a float of only 23 million shares… small by Bulletin Board standards. Readers are encouraged to visit the company web site for further information. victorindustries.com

Stocksnake.com did not receive compensation of any kind from the company or third parties for writing this report. Readers are urged to read the company SEC filings and do their own due diligence before investing in this or any other stock.
... reprinted from Stocksnake.com (4-1-2001)

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