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Introducing EnviroLeach Technologies (CSE:ETI), A Stock That Climbed 22% In The Last Three Years
June 15, 2020
By buying an index fund, you can roughly match the market return with ease. But if you choose individual stocks with prowess, you can make superior returns. Just take a look at EnviroLeach Technologies Inc. (CSE:ETI), which is up 22%, over three years, soundly beating the market decline of 7.8% (not including dividends).
See our latest analysis for EnviroLeach Technologies
EnviroLeach Technologies recorded just CA$453,389 in revenue over the last twelve months, which isn’t really enough for us to consider it to have a proven product. So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). For example, investors may be hoping that EnviroLeach Technologies finds some valuable resources, before it runs out of money.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets to raise equity. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt.
EnviroLeach Technologies had liabilities exceeding cash by CA$448k when it last reported in March 2020, according to our data. That makes it extremely high risk, in our view. So the fact that the stock is up 147% per year, over 3 years shows that high risks can lead to high rewards, sometimes. It’s clear more than a few people believe in the potential. You can see in the image below, how EnviroLeach Technologies’s cash levels have changed over time (click to see the values).
Of course, the truth is that it is hard to value companies without much revenue or profit. However you can take a look at whether insiders have been buying up shares. It’s often positive if so, assuming the buying is sustained and meaningful. You can click here to see if there are insiders buying.
A Different Perspective
The last twelve months weren’t great for EnviroLeach Technologies shares, which performed worse than the market, costing holders 19%. The market shed around 9.0%, no doubt weighing on the stock price. Investors are up over three years, booking 6.8% per year, much better than the more recent returns. Sometimes when a good quality long term winner has a weak period, it’s turns out to be an opportunity, but you really need to be sure that the quality is there. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we’ve identified 6 warning signs for EnviroLeach Technologies (3 are a bit unpleasant) that you should be aware of.
EnviroLeach Technologies is not the only stock that insiders are buying. For those who like to find winning
https://simplywall.st/stocks/ca/materials/cse-eti/enviroleach-technologies-shares/news/introducing-enviroleach-technologies-cseeti-a-stock-that-climbed-22-in-the-last-three-years/
Circular economy: the projects leading the way in mining waste recovery
15 JUNE 2020
As mining operations grow, so too does their waste production, despite the fact that many waste streams contain useful and even precious resources. We round up some of the innovative projects approaches to tackling mining waste, and helping to push mining towards becoming a truly circular economy.
Mining is big business, but also one of the world’s biggest polluters. A 2019 report estimated that the world’s 3,500 large-scale mining operations produce over 100 billion tonnes of solid waste per year. The ratio of useful materials to waste minerals is staggering; waste mass can be several times that of base metals, and can be millions of times that of rare elements such as gold.
This waste is of particular concern due to its often toxic content, with poisonous materials such as mercury a frequent by-product of mining operations. Recent accidents, such as the collapse of a tailings dam at Vale’s Brazilian operations near the town of Brumadinho, have also shone a spotlight on existing waste storage and treatment facilities, with growing concern that simply collecting vast reserves of solid and liquid waste is both unprofitable and highly dangerous. As demand for minerals, particularly rare earths and other uncommon commodities, grows, this problem is set to only increase.
A promising counter to this growing problem is that of waste recovery. Rather than cutting down on waste itself, companies are investing in new industrial processes to extract and re-use some of the useful materials that are often dumped among tonnes of less useful mining waste. With platinum group metals (PGMs), base metals, and even rare commodities such as gold among these unintended by-products of mining, there are a number of initiatives across the mining industry to improve the reclamation of resources, and push the sector towards a truly circular economy.
Mineworx moves to pilot plant
Canada-based Mineworx has been involved in the mining industry for some time, having entered into the sector in 1975 with the acquisition of the Cehegín iron ore project in Spain, which produced four million tonnes of ore in its first fourteen years of operation. Since then, the company has moved into the development of more advanced technologies, aiming to increase the environmental viability of both its operations in particular and mining in general. The business reached a major milestone in April when it announced an agreement with Tennessee’s Davis Recycling Inc. to construct a pilot plant; the operation will see platinum group metals (PGMs) recycled from used catalytic converters.
The project will see the miner enter into a PGM recovery business that it values at around $30bn annually, and the move is a critical step in demonstrating the efficacy of the technology, which builds on the work of another partner, EnviroLeach. This third company has developed a water-based process to extract PGMs from catalytic converters, with up to 90% of the precious metals being recovered. The process removes the need for harmful substances, such as cyanide, to be used in the extraction process, which have been an industry standard but pose significant risks to human health and environmental safety.
This collaborative approach could help share information that could be beneficial across the mining industry, a sector which could see an increased demand for innovative waste treatment in the future. EnviroLeach notes that global electronic waste is predicted to increase to 78 million tonnes by 2026 as electronic devices become more widespread, and demand for gadgets increases.
Comstock targets mercury removal
Another mining company targeting a particular mineral is Comstock Mining, a Nevada-based miner that aims to improve the recovery and removal of mercury from mine tailings. The poisonous metal has long been a source of public health concerns in both artisanal mining and large-scale operations. A 2018 report found that over 1,000 tonnes of mercury was produced in the artisanal gold mining sector, due to the metal’s use in separating gold from non-precious ores. Notably, the waste that flooded the town of Brumadinho in the infamous Vale tailings dam collapse was found to contain dangerous quantities of mercury, arsenic, and manganese.
https://www.mining-technology.com/features/circular-economy-the-projects-leading-the-way-in-mining-waste-recovery/
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