Envirometal Technologies Inc. (EVLLF)

[rockraider3]

If they can prove this process works on a large scale and become cash flow positive then they can survive to get into other areas.

This is the cloud over the company right now. I'm sure they can get this up and running on a large scale. It might take longer than expected, but most companies can source people capable enough to do this. The question is if they can do it on a positive cash flow basis, and I have my doubts about that. Doubts created by the significant amounts of overhead that they lumped on this business already while they generate negative cash flow already. Plus the input costs look completely out of whack, and I don't know that they can source e-waste material cheaper. Its not cheap when it sells at $4/lb in the market and you have outfits that will 'refine' it for private parties at $1.35/lb. I can't see the path to 30%+ operating margins yet, which they put in their presentation.

Is this where Jabil comes in? I have no idea what that arrangement is or how it benefits the Company or might impact their cash flows. I'm kind of hoping this is what I am missing here. Because I'm either missing something, or this company is FAR too optimistic in their ability to turn a profit.

There are some really high grade gold discoveries in jurisdictions that don’t allow cyanide and acid leaching.

Do you have examples of these? Who are these mine/mining companies that we expect to partner with that otherwise can't run without EnviroLeach's solutions?

If this plant can do enough to produce an income stream for EVLLF and MWXRF

What is the affiliation with MWXRF now? I know it was spun out. Do they have an agreement to process their materials? Is their BC facility located near MWXRF's mine?

As for those companies that will “refine” PCBs. They are horrible polluters.

Yes, but unless (or until) there are regulations in place to force these companies to act more environmentally friendly, they are an alternative to EnviroLeach. And it looks to me, that they are a far more profitable alternative to the person who is looking to recycle PCBs.

I'd really like to see the company provide their e-waste input costs in their next MD&A. Are they getting it for below market prices? If so, how, and is that sustainable? Everyone in that food chain has to get paid, and recycled PCB and e-waste material does just source itself to their doorsteps.

separate all the fractions including the resins for recycling

I like the sound of that as a human being populating the planet, but I'm not sure that makes for much of an income stream.

Does anyone have any idea how much more capital they really need to reach the point of proving the viability and scalability of their process? Is that done, or how much more capital do they need to reach that point?