Distributed on behalf of Northstar Clean Technologies:
Highlights
Northstar Clean Technologies Inc. (TSXV: ROOF) (OTCQB: ROOOF) ("Northstar" or the "Company") is pleased to announce the results from its internal management-prepared economic analysis for its planned expanded-capacity asphalt shingle reprocessing scale up facility in Calgary, Alberta ("Calgary Empower Facility"). As part of the recently released independent front-end engineering design ("FEED") study prepared by BBA Engineering Ltd. which provided a pre-feasibility level capital estimate for the planned Calgary Empower Facility, the Company completed a detailed internal financial analysis of the planned Calgary Empower Facility. The Company sensitized a broad range of both operational and financial assumptions to ultimately arrive on a conservative base case, which is provided here, as well as identify certain variables to provide potential upside. The results and major assumptions are provided below. All currencies quoted within this press release are in Canadian dollars.
Mr. Aidan Mills, President & CEO and Director of Northstar stated, "For a sustainable, environmental, social and governance-focused business to succeed, we believe it needs the following: Step 1) a technology that works; Step 2) the ability to scale up that technology; and Step 3) a clear and profitable commercialization strategy. Our steady state production of specification products at our Empower Pilot Facility in Delta, B.C. demonstrates Step 1 and we believe our announcement of the successful completion of our FEED study means we are on a clear pathway to Step 2. Our detailed analysis of the potential financial returns for our facilities, described below, hopes to convey to stakeholders that Step 3 is achievable."
Mr. Mills continued, "While these results are exciting for our Company, we believe a clear pathway to further upside may be available. Our internal financial analysis underpins the triple bottom-line potential of our technology, creating potential profit while benefiting our stakeholders, including shareholders, employees and the communities where we operate, and creating a positive impact on the environment. In the City of Calgary, we have the ability to not only divert approximately 30,000 to 50,000 tonnes of asphalt shingles per facility from the municipal landfill, but also potentially deliver an approximate annual EBITDA(2) of $4 Million. Not only can we help provide major municipalities across Canada and the United States with a unique circular economy and modular solution for reprocessing single-use asphalt shingles, but we hope that we can increase shareholder value and provide additional benefits to our various stakeholders."
Key Operational Assumptions:
Key Financial Metrics:
Category | Metric ($/tonne) | Notes: |
Revenue | $222 / tonne | Average revenue generated by Tipping |
COGS | $79 / tonne | |
Utilities: $33 / tonne | ||
Staff & Labour: $30 / tonne | ||
Other: $16 / tonne | ||
Gross Profit | $143 / tonne | |
Facility Operating Overhead | $27 / tonne | Includes lease, salaried staff and plant |
EBITDA(2) | $116 / tonne |
Key Additional Financial Considerations
Management's View on Potential Upside of Project Economics:
For more information of the FEED study, please see the Company's news release dated March 31, 2022 filed under its profile on SEDAR.
Notes:
(1) | Based on anticipated first full operational year. |
(2) | Earnings before interest, taxes, depreciation and amortization ("EBITDA") is a Non-GAAP financial measure and refers to earnings determined in accordance with IFRS, before depreciation and amortization, interest expense (finance costs) and income tax expense. EBITDA should not be construed as alternatives to net income/loss determined in accordance with International Financial Reporting Standards ("IFRS"). EBITDA does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company believes that EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. |
About Northstar
Northstar Clean Technologies Inc. is a Vancouver-based clean technology company focused on the sustainable recovery and reprocessing of asphalt shingles. Northstar has developed a proprietary design process for taking discarded asphalt shingles, otherwise destined for already over-crowded landfills, and extracting the liquid asphalt, aggregate and fiber for usage in new hot mix asphalt, construction products and other industrial applications. Focused on the circular economy, Northstar plans to reprocess used or defective asphalt shingle waste back into its three primary components for reuse/resale in the circular economy. As an emerging innovator in sustainable processing, Northstar's mission is to be the leader in the recovery and reprocessing of asphalt shingles in North America, extracting the recovered components from asphalt shingles that would otherwise be sent to landfill.
For further information about Northstar, please visit www.northstarcleantech.com.
On Behalf of the Board of Directors,
Aidan Mills
President & CEO, Director
Cautionary Statement on Forward-Looking Information
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. The TSXV has neither approved nor disapproved the contents of this press release.
This press release contains forward–looking information within the meaning of applicable securities legislation, which forward–looking information reflects the Company's current expectations regarding future events. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. Forward-looking statements in this press release include, but are not limited to, statements regarding: the steps necessary for an environmental, social and governance-focused business to succeed; any anticipated upside from the Company's management-prepared economic analysis and, in connection therewith, the Company's ability increase shareholder value and provide additional benefits to our various stakeholders; the Company's various pricing assumptions, processing tonnage quotes, operation hours, tax incentives or carbon credits, and other operation assumptions noted under the heading "Management's View on Potential Upside of Project Economics", as well as any other general statements regarding the perceived benefits of the Calgary Empower Facility and Northstar's technology. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including risks related to factors beyond the control of the Company as well as those risks and uncertainties which are more fully described under the heading "Risk Factors" in the final prospectus of the Company dated June 18, 2021 and in the Company's annual and quarterly management's discussion and analysis and other filings with the Canadian securities regulatory authorities under the Company's profile on SEDAR. The novel strain of coronavirus, COVID-19, also poses new risks that are currently indescribable and immeasurable. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. The Company does not undertake any obligation to update such forward–looking information whether because of new information, future events or otherwise, except as expressly required by applicable law.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. The Company does not intend, and does not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law.
This news release also contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the Company's expected revenues, cash flow, gross margins, and EBITDA(2) following the start of operations at its Calgary Empower Facility, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraphs. The actual financial results of the Company accordingly may vary from the amounts set out herein and such variation may be material. Northstar and its management believe that the FOFI quotes herein has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about Northstar's anticipated future business operations following the start of operations at its Calgary Empower Facility. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.
Last Trade: | US$0.26 |
Daily Change: | 0.03 10.59 |
Daily Volume: | 17,000 |
Market Cap: | US$33.860M |
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Northstar Clean Technologies is a cleantech company focused on the sustainable recovery and reprocessing of asphalt shingles. Northstar’s mission is to be the leader in the recovery and reprocessing of asphalt shingles in North America...
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