Bactech Environmental Corp. (BAC:CSE; BCCEF:OTCQB; OBT1:FRA) announced through a press release that it has obtained an important environmental license from the government of Ecuador. The company reports that this is a major milestone in its efforts to construct a bioleach processing facility. As part of this process, the company intends to conclude negotiations with Analytica Securities, which has allowed the company to put CA$17 million towards construction and CA$3 million towards purchasing resources from local miners.
The company also noted that it is negotiating another private placement deal that should secure more revenue for the company’s projects.
The president and CEO of Bactech, Ross Orr, stated “Our shareholders are aware that this significant project has been years in the making, and we are very happy to announce the approval of our permits. We would like to commend Minister Davilos (Environment) for his efforts in achieving this milestone for Bactech. With the full support of the local community and government stakeholders, we can confidently proceed with the plant financing.”
The company also released a number of economic highlights from the plan, including a pretax NPV of CA$60.7 million, a pretax IRR of 57.9%, a capital cost of CA$17 million, a bioleach operating cost of CA$212 per tonne, and annual gold production of 30,900 ounces.
Revival in Store for Gold
Rick Mills of Ahead of the Herd recently looked into the gold market, commenting “If we’re right, and we are on the cusp of a global economic revival, the three metals I’d want to be invested in are gold, silver and copper. Even better, the junior resource companies that own large Au, Ag or Cu deposits in safe jurisdictions that would be of interest to larger, deep-pocketed mining companies.” Mills highlighted several factors behind a surge for gold, including rising international conflicts, high national debt, and purchases by central banks.
A Strong Speculative Buy
Technical analyst Clive Maund reviewed the company in July of 2023, and rated the company as a “strong speculative buy” for investors, citing a number of factors in the company’s stock patterns: “In addition to the strongly bullish volume pattern of the past six weeks, which has been almost entirely upside volume, are the strong Accumulation line which is a result of this, and the partial unwinding of the earlier overbought condition shown by the MACD indicator and the cross of the moving averages with the 50-day rising clear through the 200-day.”
Chris Temple of The National Investor looked at Bactech on June 6 of 2023, and elaborated on the way in which the company’s performance might be affected by Ecuador’s election. According to Temple, the company can finally proceed with scheduled milestones, such as its community consultations.
Bob Moriarty also reviewed Bactech in April of 2022, and spoke positively of the company in regard to the company’s business turnaround. Moriarty commented “As far as I am concerned the price of the shares seems to agree with me, investors couldn’t get their heads around the process and the business plan.”
The company has a few catalysts to announce, according to its investor presentation, namely Phase 2 of its Tenguel Project, which the company expects to produce 100,000 ounces of gold every year.
Ownership and Share Structure
Reuters has no data on investors. However, Reuters does report that the company has 185.36 million shares outstanding and 159.12 million free float traded shares, while the company has a market cap of CA$10.81 million and trades in the 52 week period between CA$0.13 and CA$0.40.
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Important Disclosures:
- Bactech Environmental Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Bactech Environmental Corp.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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