# Texas Lime Concentration Risk One plant, Texas Lime near Cleburne in Johnson County, earns most of USLM's profit. A long outage there has no quick substitute. ## The sites ```mermaid graph TD TX["Texas Lime, Cleburne TX<br/>~60–65% of tons, >70% of gross profit (est.)"] AR["Arkansas Lime, Batesville AR"] LH["Love Hollow Quarry, Cushman AR<br/>rail-linked to Batesville"] OK1["St. Clair Mine, Marble City OK<br/>underground"] OK2["Mill Creek Dolomite OK"] MO["Carthage Crushed Limestone MO"] T1["Houston terminal"] T2["Shreveport terminal"] LH --> AR AR -->|rail| T1 AR -->|rail| T2 OK1 -->|rail| T2 ``` - Profit shares are the source's estimate, not a segment disclosure.^[Colubeat Investment Desk, 28 May 2026, https://colubeatid.substack.com/p/united-states-lime-and-minerals-inc] ## Short-term shock - 60 days lost × ~8,000 tons/day × ~$39 gross profit/ton ≈ **$18–20M**. - That is a bad quarter, not a broken thesis. Cash covers it many times. - Local buyers have few alternatives. Much deferred demand likely returns after restart. - January 2026: a winter storm halted shipments. Plants had no damage. Q1 revenue fell 3.7%. ## Long-term shape - If Cleburne cannot add kilns, growth moves to Arkansas or Oklahoma. See [[DFW Kiln Permitting]]. - Those plants sell less slurry and more low-margin product. - Growth there earns less profit per ton than today's average. > [!important] Two different risks > A Cleburne outage is a volatility risk. A Cleburne capacity cap is a valuation risk. The second matters more for a long-term holder. ## Reserves - Total: 223.15M tons, ~47 years at 2025 output (4.687M tons). - Texas Lime: 5,200 acres, ~70 years. Love Hollow: >93 years. ---- tags: #boat #investing links: [[United States Lime and Minerals MOC]] [[USLM Investment Thesis]] [[Transport-Cost Moat]]