The recently announced acquisition of Ecuador's Silvercorp Metals is “great news for everyone” in the South American country, BacTech Environmental Corp. CEO said. Find out why one analyst says BAC stock has “huge upside potential.”
The political situation in Ecuador continues to improve after growing drug gang violence made global headlines earlier this year.
BacTech Environmental Corp. (BAC:CSE;BCCEF:OTCQB;OBT1:FRA) The South American country had just received its long-awaited environmental license for its bioleaching plant when the unrest began.
Since then, Ecuadorians have voted to support President Daniel Noboa's security measures to bring the situation under control, including allowing the army to patrol with police, extraditing accused criminals and increasing prison sentences for terrorism and murder.
Ross Orr, BacTech's chairman and CEO, wrote in his Sunday Morning Coffee email to supporters and shareholders on Sunday that “with all the negative news circulating regarding South America, it is refreshing to see that for some, it's business as usual.”
Orr was referring to Silvercorp Metals Inc. (SVM: TSX; SVM: NYSE) recently announced an agreement to acquire a company based in Ecuador Adventus Mining Corp. in an all-stock transaction valued at C$200 million.
The fact that mining companies are still developing projects in Ecuador is “great news for everyone,” Orr wrote.
“Recent corporate activity in Ecuador continues with several transactions occurring recently despite what people read in the press,” Orr said. Streetwise Reports. “Silvercorp's acquisition of Adventus is a good example of this. People need to remember that South America has always been a difficult place to do business, but investment continues no matter what the headlines say.
Agreement Adds El Domo Volcanogenic Massive Sulfide (VMS) Deposit Development Project to Silvercorp's Assets in China and Bolivia, Increases Company's Exposure to Gold, Silver, Copper , lead and zinc and improves its production profile in the short term.
“This transaction will create a new globally diversified green metals producer,” said SVM Chairman and CEO Dr. Rui Feng. “This provides us with the opportunity to leverage our technical expertise and strong balance sheet to unlock value for all shareholders by constructing the El Domo project.”
The Catalyst: Bug-Eating Rocks
BacTech is building a bioleaching plant in Tengel, Ecuador. Its bioleaching process uses natural bacteria, harmless to humans and the environment, to extract precious and base metals from ores, concentrates and tailings. Its motto is “Our insects eat stones”.
“We discovered a gem in Ecuador,” Orr said. “Even if governments change, environmental problems persist until they are resolved. I firmly believe that Ecuador is just the first in a series of successes that will follow once we demonstrate the capabilities of our technology.”
The company also recently announced that it had filed an extended application because it is the first zero-waste bioleaching process to recover metals, fertilizers and iron from millions of tons of mining tailings around the world.
From one ton of waste, five different products can be sold, leaving no waste, the company said. These products are iron for making steel or batteries, premium organic fertilizers and the base metals nickel, cobalt and copper. All that remains are silicates which can be used as industrial filler or as paste for backfilling mines.
“It is difficult to overestimate the importance of the technology developed by BacTech to the mining industry and the environment worldwide. » wrote technical analyst Clive Maund, who said he was long on the stock and rated it a Strong Buy for all time frames. “There are hundreds of millions, if not billions, of tons of this residue lying around the world.”
“BacTech’s technology has the ability to convert all of this waste into profitable assets while cleaning up the mess,” Maund noted. “This is why, given that BacTech has patented its processes and technology, its stock has such enormous upside potential.”
Chris Temple, editor and publisher of The national investorhas been a shareholder and supporter of the company for some time.
After the latest announcement on the patent extension, he wrote that “an already compelling green mining story…just got a whole lot better and potentially more explosive.”
“By taking the bioleaching process to its conclusion, it can also lead to the recovery of iron in steelmaking and even to an organic fertilizer,” he wrote.
Shareholding and sharing structure
Nearly half of the company, or 49%, is owned by insiders, executives and strategic shareholders, the largest of which is Option Three Advisory Services Ltd., which owns 8.48%, or $15.57 million. shares, according to Reuters. This also includes CEO Orr, who owns 3.57% or 6.54 million shares, and Board Director Timothy Lewin, who owns 0.54% or 0.98 million shares.
The rest is retail.
The company has 193.04 million shares outstanding. Its market capitalization is CA$12.05 million and trades on a 52-week range of CA$0.10 to CA$0.05.
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Important Disclosures:
- BacTech Environmental Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee of between US$4,000 and US$5,000. Furthermore, BacTech Environmental Corp. maintains a consulting relationship with an affiliate of Streetwise Reports and pays a monthly consulting fee of between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their households) own securities of BacTech Environmental Corp.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and does not constitute a solicitation for any investment. Streetwise Reports does not provide general or specific investment advice and the information contained in Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult their personal financial advisor and conduct their own comprehensive investment research. By opening this page, each reader agrees to Streetwise Reports' terms of use and full disclaimer. Streetwise Reports does not endorse or recommend the activities, products, services or securities of any company.
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Contributing Author Disclosures
- Certification and remuneration of authors: (Clive Maund of clivemaund.com) is compensated as an independent contractor by Street Smart, a subsidiary of Streetwise Reports, for the writing of this article. Maund qualified as a British Technical Analyst in 1989. The recommendations and opinions expressed in this content fairly reflect the personal, independent and objective views of the author regarding all designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or opinions expressed.
Clivemaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him at the time of writing. Mr. Maund's opinions are his own and do not constitute a recommendation or offer to buy or sell any security. Because trading and investing in any financial market may involve significant risk of loss, Mr. Maund recommends that you consult a qualified investment advisor, licensed by the appropriate regulatory bodies in your jurisdiction, and make your own due diligence and your own research when making any kind of transactions. of a transaction with financial consequences. Although qualified and experienced stock analyst, Clive Maund is not a licensed securities advisor. Therefore, Mr. Maund's opinions on the market and stocks should not be construed solely as a recommendation or solicitation to buy and sell securities.