Wednesday December 17, 2014
Minimizing the environmental impact of mining is a primary priority, especially as to how it relates to water resources. There are many strategies to prevent the release of contaminants into the environment and to keep any existing groundwater pure, including diverting surface water, covers for waste, etc. Clean technologies have made great advancements over the years as well, providing another valuable resource for miners in a bid to maintain regulatory compliance.
Ottawa-based BluMetric Environmental Inc. (TSX-Venture:BLM) operates through two divisions: professional services and water, with its clients spanning many industries and different levels of government. The company’s water division is comprised of WESAtech and Seprotech, companies specializing in water purification.
Venture exchange listed companies are often developmental companies with little to no revenue, but BluMetric goes against that grain. In August, the company reported $20.74 million in revenue during the first three quarters of the fiscal year (through June 30). That was up slightly from $19.6 million in the year prior period. Net loss for the year to date was $1.23 million, or 5 cents a share, matching the per share loss from the period ended May 30, 2013.
BluMetric said that sales during the third quarter, which had revenue of $6.5 million, compared to $7.27 million a year earlier, were negatively impacted by two major projects experiencing start-up delays over which the Company had no control. BluMetric ran leaner during the quarter anyway, shaving the new loss to $291,000, or one cent per share, from $773,000, or three cents per share, in the year-prior quarter. To that point, investors should be looking for the full fiscal year report in the near future.
On Wednesday, BluMetric said that it was awarded a $1.1-million contract to design and deliver a water treatment plant to a northern Ontario mine for a “large, multinational mining company.” As is often the case, the miner’s name was not disclosed. The purpose of the plant is to remove dissolved metals, ammonia and other contaminants to ensure that infiltration water pumped from the mine site meets the requirements of the Ministry of the Environment. The treatment plant is expected to be delivered within three months.
The plant is designed to be modular so it can be moved to future locations and includes BluMetric’s first industrial use of LG’s advanced membrane products. LG manufactures a series of membrane products and solutions for the water treatment process, including a new product dubbed G-Brane.
“This contract is a result of our team’s ability to approach each customer’s situation with innovative thinking, solve site-specific problems, and still deliver quickly,” said Dan Scroggins, President of BluMetric’s Water Division. Scroggins added that his company’s broad experience in alternative treatment methods, regulations and practical “can-do” response are keys to success in the sector.”
Although BluMetric is generally a thinly traded stock on a daily basis, it’s a bit of a surprise that not a share has traded late in Wednesday’s session in response to the news. The stock has been plumbing 52-week lows at 10 cents for the last couple months and has edged its way upward recently to 15 cents.