Unearthing Gold the Green Way: The BacTech Bioleaching Revolution
US OTC SYMBOL – $BCCEF Canadian:BAC Frankfurt:0BT1 Market Cap 11.7m Stock Price $.063 Total Shares Outstanding: 185m
TL:DR Today, I am revisiting one of my clean tech picks, BacTech Environmental. I have been holding the company since 2021 and my family and I hold a non-reportable percentage of the company, so you need to know that 1. I am biased and 2. I think they have a very bright future. Their clean gold processing project in Ecuador has phenomenal financials and has been held up by the permitting process, or really the lack of formal process. Now that the process has been decided by the government, they look ready to clear the last permitting hurdle and get the green bond deal sealed. At this price, I think it worth your time to do some digging. - Penny
Before you dismiss the headline as too fanciful, lend an ear. A groundbreaking Canadian company, BacTech Environmental Corporation, has reimagined gold extraction, harnessing the power of bacteria to eliminate the need for traditional mines and the reliance on harmful chemicals. Yes, you read it correctly - it's the bacteria that are doing the heavy lifting!
These minuscule organisms possess a remarkable ability to selectively extract precious metals like gold and silver. This proven, green method removes the need for hazardous arsenic emissions produced by conventional gold mining. Essentially, BacTech has created a sophisticated yet simple flotation system, where the bacteria are the workhorses.
But how does this process actually work? In layman's terms, BacTech's bioleaching technology leverages bacteria to safely 'mine' gold from materials loaded with arsenic. This technology effectively turns dangerous contaminants into benign byproducts, such as gypsum, negating the need to incinerate the material which would release toxins into the air.
By removing harmful substances and releasing the 'good stuff' like gold, the company provides a cleaner, safer, and more sustainable way of extracting gold, also offering better prices to local miners in the process.
The Numbers
Now, let's delve into the financial aspects. BacTech has been listed under the US OTC Symbol – $BCCEF, Canadian:BAC, and Frankfurt:0BT1. The company currently has a tiny market cap of 12.58 million USD with a stock price of about 6.3 cents USD and a total of 185 million outstanding shares. All financial information is in US currency, with the current conversion rate being $1.00 US = $1.32 CAD.
Significantly, BacTech released its third-party bankable feasibility study before the permitting delays. This document highlights that their upcoming project in Tenguel, Ecuador, will cost 15.5 million USD and provide a 48% rate of return ($46.9m net present value). These figures predict pretax earnings of 8.94 million USD, quite impressive for a company valued at 11.7 million USD. Moreover, these estimations assume a gold price of $1600 per ounce, while the current price is close to $1977.
BacTech's innovative bioleaching project in Ecuador is expected to generate considerable economic opportunity for the region. The company is set to construct a state-of-the-art plant, which should yield an estimated 31,000 ounces of gold annually. With today's gold prices, this equates to a potential annual revenue of $61 million.
Once operating costs and fair payments to local miners are accounted for, the projected pre-tax profits stand around $14.8 million annually. Considering the initial capital expenditure of $15.5 million, a 2-year payback period is expected, demonstrating the robust economics of BacTech's pioneering technology.
The company aims to empower the local community as well. The Tenguel facility is situated on a large former cocoa farm, where BacTech allows the former employees to continue using parts of the land for agriculture, free of charge. This land has room for BacTech’s second phase which involves adding another 200 tons per day. Assuming success on the 50 TPD plant, I expect them to quickly be able to move forward with fully financed expansion plants.
BacTech is currently awaiting third-party certification from Moody's to issue $20 million in green bonds for facility financing, a testament to its commitment to sustainable practices and not diluting their loyal shareholders.
BacTech's venture represents more than just an investment opportunity—it's a model of green economics. For new potential investors considering this eco-friendly gold producer, a thorough due diligence process is highly recommended (and quickly).
*Disclaimer: I am a shareholder of BacTech and have not been paid by the company in any way. Although every effort has been made to provide accurate, up-to-date financial information, potential investors should undertake their own due diligence and consult with a registered advisor before making any investment decisions. Investments in small-cap companies come with high risks and may result in the loss of capital, thus they are suitable for experienced and professional investors and traders only.*