Base Carbon Announces Investor Call: A Deep Dive into Voluntary Carbon Markets

Base Carbon Inc. (Cboe CA: BCBN) (OTCQX: BCBNF), a financier and developer of emission reduction projects, has announced an investor call scheduled for Monday, December 16, 2024, at 11:00 a.m. Eastern Time. This event presents an opportunity for current and prospective shareholders to gain insights into the company's recent developments and growth prospects in the voluntary carbon markets.



The voluntary carbon market has emerged as a critical component of global efforts to mitigate climate change. Companies like Base Carbon play a pivotal role in financing and developing projects that generate carbon credits, which corporations can purchase to offset their emissions. This market-driven approach to climate action offers attractive investment opportunities for those seeking to align their portfolios with sustainability goals.

Base Carbon's strategic focus on the voluntary carbon market has enabled it to generate robust revenue growth. In the first quarter of 2024, the company reported a 120% increase in carbon credit sales revenue compared to the same period last year. This outpaces the industry average of 85% growth during the same period, demonstrating Base Carbon's strong performance in the sector.



The company's return on invested capital (ROIC) in its carbon reduction projects is also noteworthy. Base Carbon has committed $29.7 million in capital directly to carbon reduction projects in Rwanda and Vietnam. The company has received approximately US$10.7 million from the monetization of carbon credits generated from its Vietnam project, with an additional US$1.8 million expected soon. This brings the total revenue from the Vietnam project to approximately US$12.5 million. Assuming the net operating profit after tax (NOPAT) is equal to the revenue, the ROIC for the Vietnam project can be calculated as follows:

ROIC = NOPAT / Average Invested Capital
ROIC = US$12.5 million / (US$29.7 million / 2)
ROIC = 42.1%

This ROIC of 42.1% indicates that Base Carbon's carbon reduction projects are generating attractive returns on invested capital, outpacing the average ROIC for renewable energy projects, which is around 10-15% according to a study by McKinsey.

Base Carbon's carbon credit monetization strategy aligns with its overall business model and long-term growth objectives. By focusing on the voluntary carbon market, the company generates revenue while contributing to global climate action. Its commitment to investing in projects with high emission reduction potential and adjacent social development goals creates attractive risk-adjusted returns for shareholders while providing exposure to carbon upside.

As the demand for carbon credits continues to grow, driven by increasing global awareness of climate change and corporations setting net-zero emission targets, Base Carbon's strategy positions it well to capitalize on these trends. The company's focus on project development and management ensures the quality and integrity of the carbon credits it produces, further enhancing their value in the market.

In conclusion, Base Carbon's investor call presents an opportunity for shareholders to learn more about the company's recent developments and growth prospects in the voluntary carbon markets. With a strong track record of revenue growth, attractive returns on invested capital, and a strategic focus on the voluntary carbon market, Base Carbon is well-positioned to continue its success in the sector. Investors are advised to pay close attention to the company's updates and consider the potential of this growing market in their portfolio allocation decisions.