EESTech, Inc.

What they do

EESTech promotes technologies that recycle mine site waste and process slag to recover valuable materials. Its offerings include the R3 Process, Waste Resource Reclamation, WRAM agglomeration, waste-to-energy platforms, and an Inductosmelt Reduction Furnace. The company intends to sell recovered materials back to waste owners and produce high-grade sand products (ThermaSand and ThermaPrills) for downstream markets.

Revenue drivers

• Reclamation of FeCr slag (Samancor Chrome) — Exclusive 10-year agreement to reclaim ferrochrome slag at Samancor's Ferrometals facility; minimal revenue to date; project in establishment phase.
• Sasol trial — Paid trial with Sasol started August 2021, extended July 2022; revenue is minimal, not yet material.
• ThermaSand and ThermaPrills — Post-process tailings transformed into high-grade sand products; 100% owned by EESTech; sales not yet significant.

Recent performance

For the quarter ended September 30, 2023, EESTech reported minimal revenue ($452) compared to $53,877 in June 2022 and $84,260 in September 2022. Total assets were $126,677 and cash and equivalents were $45,646 as of September 30, 2023. Shareholder equity was $623,955. The company remains in the developmental stage and continues to record losses.

Strategy

EESTech is pursuing a self-performing model where it funds project capital to demonstrate confidence in its technologies, being paid only on performance. The company seeks to secure contracts with major global mining entities, starting with the Samancor project. It aims to commercialize its waste-to-energy and agglomeration products to create multiple revenue streams.

Risks

• Development-stage, no significant revenue — The company has not generated meaningful revenue and continues to incur losses, with quarterly revenue as low as $452 in Q3 2023.
• Project delays — The Samancor project faced delays due to COVID and required an 18-month establishment period, delaying expected cashflows.
• Dependence on a few key contracts — Revenue relies on a limited number of agreements (Samancor, Sasol) and success in securing new contracts with global mining entities.
• Financial constraints — With only $45,646 in cash as of September 30, 2023, the company may face liquidity issues to fund project capital and operations.

Outlook

Management expects the Samancor project to generate cash flows after the 18-month establishment period, which began after approvals in January 2022. The Sasol trial, while extended, is expected to provide minimal revenue. The company's forward-looking statements indicate plans to commercialize its technologies but acknowledge uncertainties and risks that could affect results.