Follow
the Money in Metals Recycling – (NASDAQ: $GWAV) (NYSE: $RIO) (NYSE: $ALB)
(NYSE: $LZM) (OTCQX: $NGLOY) (OTC: $GLNCY) @GreenwaveGWAV @AngloAmerican
@Glencore @LifezoneMetals @AlbemarleCorp
Why the
Big Miners are Jumping in
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.
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.
This article featuring Greenwave Technology
Solutions, Inc. is paid for news dissemination.
Read this article, featuring GWAV in full at https://www.investorideas.com/news/2024/renewable-energy/06201Metals-Recycling.asp
"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 (OTCQX:NGLOY)
(LSE:AAL). Rio Tinto (NYSE: RIO) and
Glencore plc. (OTC: GLNCY ) (LSE: GLEN).
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 (NYSE: LZM), 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. (OTC: GLNCY)
(LSE:GLEN) 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 (NYSE:ALB), 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
Research more green
stocks with Investorideas.com free stocks directory
https://www.investorideas.com/Companies/RenewableEnergy/Stock_List.asp
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