Vancouver, Kelowna, and Delta, British Columbia--(Newsfile Corp. - June 20, 2024) - Investorideas.com. a go-to platform for big investing ideas issues the second half of a two -part series looking at metals recycling. The snapshot covers the growing demand and why big mining names are investing in the space, featuring Greenwave Technology Solutions, Inc. (NASDAQ: GWAV), an operator of metal recycling facilities in Virginia, North Carolina, and Ohio.
Read the full article at Investorideas.com
https://www.investorideas.com/News/2024/renewable-energy/06200Metals-Recycling.asp
As demand for copper and other metals continues to rise, supply becomes a big issue. Just looking at copper alone, a recent forecast said, "Copper demand could double by 2035. The main drivers are the revival in demand from Chinese manufacturers, the rebound of the global economy and the boom in investments in green technologies (e.g. renewables and electrical vehicles) and in AI technologies."
Continued: Supply is expected to grow but not as fast as demand. This is primarily due to two factors: the time required for new mine construction and the ageing of already existing mines.
Looking at the time lines, big names in mining are investing in the future of recycling in addition to the current players focusing strictly on recycling.
Greenwave Technology Solutions, Inc. (NASDAQ: GWAV), a leading operator of metal recycling facilities in Virginia, North Carolina and Ohio say on their website, "SCRAP IS THE NEW PRECIOUS METAL."
Earlier this week, Greenwave announced that it has completed its recapitalization and is on track to generate record revenues in excess of $40 million driven by volume of steel and copper processed in 2024
In May, Greenwave reported that it is expecting to generate revenues exceeding $40 million during the year ended December 31, 2024. Growth is being driven by its Cleveland, OH and Virginia Beach, VA locations. The Company expects its second American Pulverizer 60x85 shredder will result in the Company being EBITDA positive and generating positive cashflow from operating activities.
"With a significantly strengthened balance sheet, I believe Greenwave is well positioned for the next phase of growth," stated Greenwave CEO, Danny Meeks. "The investments we've made in Greenwave's infrastructure will facilitate significant growth in our copper and steel processing capacity, which we anticipate will create significant shareholder value."
For its 2024 outlook, Greenwave says on its website, "The installation of Greenwave's second automotive shredder at its Carrollton facility to process cars, household appliances and industrial products in now complete. The shredder is expected to commence operation as soon as the electrical infrastructure is completed. Greenwave's second automotive shredder is expected to come online this quarter and double the Company's ferrous metal output. By selling its ferrous metal as shredded rather than unshredded, Greenwave generates approximately 25-30% more revenue with profit margins in excess of 60%."
"The completion of Greenwave's second automotive shredder concludes its multi-year capex cycle, under which the Company has invested more than $15 million in its infrastructure and equipment over the past 18 months. This capex cycle is expected to double its ferrous metal processing capacity from fiscal 2022 levels and result in the Company having the infrastructure to accretively scale its metal recycling."
Big miners are also following the money trail and getting into the metals recycling game, including Anglo American, Rio Tinto and Glencore plc. .
As the Financial Post reported, "A US$700-million investment barely burns a hole in Rio Tinto Ltd.'s pocket. The sum is less than five per cent of its 2022 annual income of roughly US$16 billion and isn't supposed to dominate headlines from a financial perspective."
"But the mining giant's Chief Executive, Jakob Stausholm will tell you that Rio's recent purchase of a 50-per-cent stake in Brampton, Ont.-based Matalco Inc., a recycler of aluminum, is key to his company's future and helped fill a gaping hole in its business."
Getting the attention of some of the top mining investors, Lifezone Metals, with a mission to provide cleaner and more responsible metals production and recycling, announced earlier this year, the signing of a binding subscription agreement for the issuance of US$50 million of convertible debentures with a consortium of marquee mining investors, led by Harry Lundin (Bromma Asset Management Inc.) and Rick Rule.
From the news: Proceeds will be used to continue activities at Lifezone's flagship Kabanga Nickel Project, located in north-west Tanzania. Kabanga is believed to be one of the world's largest and highest-grade undeveloped nickel sulfide deposits. The Kabanga Definitive Feasibility Study is on-track for completion in Q3 2024.
Last December, Lifezone announced the signing of a term sheet with a subsidiary of Glencore plc. for a platinum, palladium and rhodium (collectively platinum group metals or "PGMs") recycling project utilizing Lifezone Metals' hydrometallurgical technology ("Hydromet") to be based in the USA.
From the news: Phase 1 confirmatory piloting work has commenced in Perth, Australia using Hydromet to process and recover PGMs from responsibly sourced spent automotive catalytic converters.
From the news: Mr. Showalter stated, "By applying our Hydromet technology, we aim to responsibly recover platinum, palladium and rhodium from recycled sources in a cleaner and more efficient manner than otherwise possible through traditional smelting and refining. Following our acquisition of Simulus Labs in July, where we acquired the preeminent hydrometallurgical testing and engineering design group, we gained the capability to simultaneously advance our Kabanga Nickel Project through the continuing Definitive Feasibility Study while also investigating other important applications of our core Hydromet technology."
Albemarle Corporation, a leading provider of lithium, bromine and other essential elements. reports on its site, "As a market leader in battery grade lithium products, Albemarle and our R&D teams are committed to the development of an effective circular battery economy across the globe."
Continued: The continued adoption of batteries for Mobility and Energy will require the deployment of technologies and infrastructure to incorporate spent batteries back into the supply chain. Recycled battery material drives more sustainable practices and improves resource security. The European Union has stipulated that by 2031 all batteries must contain 6% recycled lithium material and up to 12% by 2036. In the United States, batteries containing critical minerals recycled in North America are expected to support vehicle qualification for the Inflation Reduction Act consumer tax credit for EVs.
Continued: Recycling enables a closed-loop supply chain and comprises a series of steps that breaks down spent batteries into black mass, separates the different metal streams, and ultimately upgrades the waste streams into precursors for cathode manufacturing. We are using our expertise in refining lithium into high-purity products to get lithium sulfate from black mass back into the battery supply chain.
Grandview Research reports, "Growing environmental concerns about depletion of non-renewable resources, increasing harmful emissions from manufacturing plants, and improper waste disposal have led to the growth of the recycling industry, of which metal recycling constitutes a major part. Factors such as regulations about mining ores and increasing raw material prices are propelling the demand for recycled metal. The product reduces the manufacturing cost significantly, this benefit is further favoring its market growth."
With big money at the table, and according to Researchandmarkets, the market projected to reach USD 767.9 billion by 2029, this sector is one to watch!
Read part one of the series at Investorideas.com
https://www.investorideas.com/news/2024/renewable-energy/06181Recycling-Metal-Stocks.asp
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https://www.investorideas.com/Companies/RenewableEnergy/Stock_List.asp
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