CoTec Holdings Corp.: Driving Operational Growth in Q3 2024
Friday, Nov 15, 2024 6:50 pm ET
4min read CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) has filed its unaudited interim condensed consolidated financial statements and management discussion and analysis (MD&A) for the three and nine months ended September 30, 2024. The company reported a comprehensive loss for the quarter and nine months ended September 30, 2024, of $2.19 million and $0.78 million, respectively. The loss was primarily driven by adverse exchange rate movements on the value of the Company's investments and non-regular vesting of Equity Incentive Units.
Despite the loss, CoTec achieved significant progress in its operational roll-out during the quarter. The company filed an initial mineral resource estimate and positive preliminary economic assessment (PEA) for the Lac Jeannine Iron Tailings Project. The PEA, completed on time and within budget, revealed an initial inferred mineral resource of approximately 73 million tonnes (Mt) at 6.7% total Fe for 4.9 Mt of contained total Fe. The project demonstrated a pre-tax NPV7% of US$93.6M, and IRR of 38%, and after-tax NPV7% of US$59.5M, and IRR of 30% excluding potential benefit of adjacent tailings.
CoTec also made significant progress with the HyProMag USA LLC bankable feasibility study (Feasibility Study), which remains on budget and on schedule for release prior to the end of the 2024 fiscal year. Additionally, the company entered into an exclusive agreement with Inserma Anoia S.L to commercialize automated processing of hard disk drives, loudspeakers, and electric motors, complementing HyProMag USA and HyProMag's German and UK future operations.
Post quarter-end, MagIron LLC Plant 4 secured its air permit, being the final permit required for its planned re-start. CoTec raised aggregate gross proceeds of $2.75 million through a non-brokered private placement and engaged San Diego Torrey Hills, Inc. to provide market awareness and investor relations services.
Mr. Julian Treger, CEO of the Company, commented on the progress, stating, "We are very pleased with the progress of our operational roll-out and continue to believe the value we have created to date is not reflected in our stock price, which is why insiders continue to support the shares in the stock market."
The PEA for Lac Jeannine is preliminary in nature and is based on inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. As such, there may be no certainty that the PEA will be realized.
CoTec is committed to supporting the transition to a lower carbon future for the extraction industry, a sector on the cusp of a green revolution as it embraces technology and innovation. The company has made four investments to date and is actively working towards the roll-out of two operating opportunities where current technology investments could be deployed. CoTec is an environment, social, and governance (ESG)-focused company investing in innovative technologies which have the potential to fundamentally change the way metals and minerals can be extracted and processed for the purpose of applying those technologies to undervalued operating assets and recycling opportunities, as the Company transitions into a mid-tier mineral resource producer.
As CoTec continues to focus on its operational roll-out, investors should monitor the company's progress and evaluate its potential as an ESG-focused investment in the mining and resource sector. The company's commitment to innovation and sustainability, coupled with its strong financial performance, positions it well for future growth and success.
Despite the loss, CoTec achieved significant progress in its operational roll-out during the quarter. The company filed an initial mineral resource estimate and positive preliminary economic assessment (PEA) for the Lac Jeannine Iron Tailings Project. The PEA, completed on time and within budget, revealed an initial inferred mineral resource of approximately 73 million tonnes (Mt) at 6.7% total Fe for 4.9 Mt of contained total Fe. The project demonstrated a pre-tax NPV7% of US$93.6M, and IRR of 38%, and after-tax NPV7% of US$59.5M, and IRR of 30% excluding potential benefit of adjacent tailings.
CoTec also made significant progress with the HyProMag USA LLC bankable feasibility study (Feasibility Study), which remains on budget and on schedule for release prior to the end of the 2024 fiscal year. Additionally, the company entered into an exclusive agreement with Inserma Anoia S.L to commercialize automated processing of hard disk drives, loudspeakers, and electric motors, complementing HyProMag USA and HyProMag's German and UK future operations.
Post quarter-end, MagIron LLC Plant 4 secured its air permit, being the final permit required for its planned re-start. CoTec raised aggregate gross proceeds of $2.75 million through a non-brokered private placement and engaged San Diego Torrey Hills, Inc. to provide market awareness and investor relations services.
Mr. Julian Treger, CEO of the Company, commented on the progress, stating, "We are very pleased with the progress of our operational roll-out and continue to believe the value we have created to date is not reflected in our stock price, which is why insiders continue to support the shares in the stock market."
The PEA for Lac Jeannine is preliminary in nature and is based on inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. As such, there may be no certainty that the PEA will be realized.
CoTec is committed to supporting the transition to a lower carbon future for the extraction industry, a sector on the cusp of a green revolution as it embraces technology and innovation. The company has made four investments to date and is actively working towards the roll-out of two operating opportunities where current technology investments could be deployed. CoTec is an environment, social, and governance (ESG)-focused company investing in innovative technologies which have the potential to fundamentally change the way metals and minerals can be extracted and processed for the purpose of applying those technologies to undervalued operating assets and recycling opportunities, as the Company transitions into a mid-tier mineral resource producer.
As CoTec continues to focus on its operational roll-out, investors should monitor the company's progress and evaluate its potential as an ESG-focused investment in the mining and resource sector. The company's commitment to innovation and sustainability, coupled with its strong financial performance, positions it well for future growth and success.
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