Northstar (TSXV: ROOF) (OTCQB: ROOOF) Announces Project Economics for its Calgary Scale Up Facility
- Northstar Clean Technologies has released an internal management-prepared economic analysis for its planned expanded-capacity asphalt shingle reprocessing scale up facility in Calgary
- The project economics analysis was based on the recently released independent front-end engineering design (FEED) study
- The Company considered a broad range of both operational and financial assumptions to ultimately arrive on a conservative base case
- Shares in Northstar Clean Technologies opened trading at CA$0.26 per share on the TSXV and US$0.207 per share on the OTCQB
Northstar Clean Technologies has released an internal management-prepared economic analysis for its planned expanded-capacity asphalt shingle reprocessing scale up facility in Calgary.
The project economics analysis was based on the recently released independent front-end engineering design (FEED) study that was announced on March 31, 2022, which provided a capital cost estimate for the planned Calgary facility.
Highlights include $7.6 million in potential annual revenue per facility, $4.9 million in potential annual gross profit per facility, and $4.0 million in potential annual EBITDA per facility.
The following summarizes management’s view on the potential upside of the project economics:
- The Company believes that its pricing assumptions are conservative relative to current market prices and that the pricing assumptions do not include a potential impact of either locational or quality differential for Northstar’s liquid asphalt.
- The Company believes its liquid asphalt product has the potential to be North America’s lowest carbon footprint asphalt and therefore could potentially command a premium to market prices.
- The planned scale up facility is assumed to run 10 hours per day and 5 days a week.
- Carbon credits are not factored into the Company’s revenue model. The Company assumes 0% of carbon credits are sold throughout the life of the project.
- The Company’s revenue model assumes that the Company receives only 85% of its feedstock from landfill diversion, with the remaining 15% generating no tipping fee revenue.
- The Company’s revenue model factors a facility capacity of 95%, includes a 2-week shutdown period (excluded from the capacity figures) and a 95% yield per product.
“While these results are exciting for our Company, we believe a clear pathway to further upside may be available,” commented Northstar’s President and CEO Aidan Mills.
“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,” he added, “but we hope that we can increase shareholder value and provide additional benefits to our various stakeholders.”
Northstar Clean Technologies Inc. is a Vancouver-based clean technology company focused on the sustainable recovery and reprocessing of asphalt shingles.
Shares in Northstar Clean Technologies (ROOF) opened trading at CA$0.26 per share on the TSXV and US$0.207 per share on the OTCQB.
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