EnviroGold Global - Company Review

Jan 25

The palette of distinct colours that form the overall image of EnviroGold Global are very vibrant, unique and refreshing. Nothing washed out that already make a bad start to paint a unique picture of a company. Within the Resource industry, typically there is a set cluster of business models, more on that later. EnviroGold is placed differently and outside of these clusters in the mining and metals extraction world.

Its a Technology Company in an industry that is predominantly associated with being rather old fashioned. A famous Mark Twain quote: “A mine is a hole in the ground with a liar standing next to it”. The more one gets familiar with this industry, the more the re-iterative business model seems to orbit closer to the meaning of this quote. In the past 4-5 Years we have interviewed close to 100 companies in the resource industry in investor appointments. An intuitive detection has formed amongst these appointments, sensing if there is more narrative than actual logic in the business case being told. Mining projects, most pre-dominantly in early, start-up stages, have a strong default tendency to be overly emotional.

EnviroGold is a start-up company in terms of its stage of development and valuation, whilst having a clear company strategy built in and around their metals extraction technique to establish itself in the market over the coming years.

As we will explore in this review EnviroGold has successfully tinkered with a new metals extraction technique that they call the “NVRO process”. This is unlocking the metals in the mine wastes and tailings of mining projects.

Tailings, as a quick explanation. The metals extraction in mining requires the rocks from the Ore-Body to be grinded in higher granularity, sometimes to sand or to a slurry texture. The pulverized rock containing the Ore is mixed with Water and chemicals to facilitate extraction of the target elements. At the end of the process, with the extraction of the metal completed, there is still the left-overs - Tailings. Another way to say it is mine-waste. Tailings are often considered to be too un-economical for any further extraction, beyond that they are toxic, as in acid toxic, and the remains are an environmental liabilty for the company in charge of production.

Thats precisely the point where EnviroGold Global comes into play.

Regarding Talings, mine waste so to speak, there has been various notoriously bad examples of negative impacts on the environment and the surrounding communities. Its a global industrial problem.

By default, in newly licenesed mine plans also the closure plan is a mandatory part to be included for the regulatory approval process. It is to mention, the most stringent regulatory frameworks are only applicable in the highest developed countries in the world, US, Canada, Australia etc. And even when such plans exist, still, worse, unforseen, random events simply happen. And…..uuppsss, shit hits the fan, with desastrous environmental outcomes. Even if things run as expted the remains are still a liability that are kept in Tailings Storage Facilites

Figure 1: Slurry Mine Waste

Figure 2: Stacked Tailings Storage Dam

Figure 3: Tailings Storage Dam

EnviroGold with their NVRO Process is targeting the after the fact situations with facilitating to re-extract metals, whilst cleaning-up the left-overs and make money doing it. As we will explore the technique has wider application possibilities to become an integral part in mine closure planning and simulation in feasibility studies upstream in the lifecycle in the mining industry.

If the process is further established, EnviroGold will support in tackling one of THE major negative environmental impacts of the whole industry.

Tailings and Waste Management!

Company Background

🌐 WEB https://envirogoldglobal.com/

🖥️ X.COM https://x.com/EnvirogoldG

💲 SP 0,085 CAD on the CSE

📊 MCap ~20 Mil CAD

💹 CSE NVRO

📈 OTCQB ESGLF

📈 FSE YGK

WKN A3CU5T

ISIN CA29408C1005

Albeit having their Headquarters and office registered in Vancouver, British Columbia, its an Australian company by heart. The centre of gravity in terms of business development and desicion making residing here. The metals processing plant was acquired from the Commonwealth Scientific and Industrial Research Organisation (CSIRO) in Perth, Western Australia, where it is still located today. Further down the track it is envisioned to relocate and install the plant at a Clean Leach demonstration facility in Brisbane, Australia, to showcase their NVRO Clean Leach Process on a small commercial scale. The NVRO Process having such a high potential for growth that logistics and location will be a key facilitator for efficient processing. Perth is close to the Asian continent and the fremantle port has always had great significance for mining and acts as a hub to the global market.

Further down the track a dual listing on the ASX to expand investor accessibilty to the home ecosystem, may be worthwhile. The strong bond and deeply rooted connection between Australia and mining underlines this point. Escpecially given the very positive contribution that EnviroGold is making to the industry.

EnviroGold can bridge a gap to lower the negative environmental impact of mining projects, which always constitutes a major challenge. Mining will always be a controversy, argueing and weighing the net benefits vs environmental impacts, such as:

Deforestation & Destroying Habitats
Water Pollution
Air Pollution
Soil Contamination
Energy Consumption and Emission
Social and Health Impacts

The overall equation remains a difficult one from an environmental perspective, EnviroGold can at least change one of the variables into more positive territory. The tailings and waste management cluster. The NVRO process can support in transforming the liabilities of the mine operators into assets. There is at least two positive angles to this, the environmental as well as the economical one.

Mining Companies hate to clean-up, EnviroGold can give their clients a framework and a process how to effectively succeed in this task. Thats a good first step, and having economic figures to underline this approach is even better.

Supporting an industrial approach to recycle the mine waste and clean up the environment has a virtuos side to it. The NVRO process can be the technical transmitter to achieve these results all the while forging from a start-up company to an established corporate organization.

The team at EnviroGold have a great overlap between the task at hand and the experience required. I had the opportunity to meet with the Management team. The wider organisation is set-up in such a way that different business streamlines can be explored. Including, but not limited to Consultants, Engineers, Metallurgists and Operations Management.

Architecture

Assets

Despite having a good technical understanding and a scientific background, the asset in terms of the technology that EnviroGold referres to as the NVRO Process can by far not be described in its entirety here. Its true chemical and metallurgical engineering. As a candid way to explain it, the EnviroGold Team has successfully tinkered with the chemical reactions and processes in a way that brings superior results to any formerly applied method in this domain. This has come about by combining a certain process follow-up, in different stages, with their chemical compositions. To explain, some processes and chemical combinations may have existed before the NVRO process, but have not been put together in this particular constellation to one another. Not an entire re-invention of the wheel and this is an absolute positive. As with many good examples in tinkering for a new technical outcome, its the combination of ideas that equate to something more than the sum of its parts. To explore this thought by some seemingly simple examples that were followed by innumerably wide applications:

Wheels on a suitcase (Wheels & Suitcase)
Rectractable Dog Leash (Retraction Mechanism & Dog Leash)
IPhone (Music Player to integrate a Phone)

Figure 5 is highlighting the benefits of applying the NVRO process in its industrial use vs two other methods, stated as A and B. By these important industrial metrics the NVRO Process comes out on top.

Figure 5: NVRO Process comparison

Figure 6: Perth Processing plant

The plant was originally developed by CSIRO for research into the recovery of high-purity nickel and cobalt battery metals via solvent extraction.

These two assets, the newly developed metallurgical metals extraction called the NVRO Process and the operational Processing Plant in Perth can be understood as the Gear Box and Motor of EnviroGold.

Share-Structure

Overall, EnviroGold Global's share structure reflects a company in the growth phase, with significant insider ownership and ongoing efforts to raise capital for technological development and commercialization.

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Figure 7: Stakes in EnviroGold

According to our findings, more than 50% is in the hands of Management, Close associates and other companies. The CEO, David Cam, being the largest shareholder of EnviroGold himself, which is always a very positivie sign. Having extensive Skin in the Game for a CEO, in his own cause. EnviroGold has a comparatively high share count for a Canadian listed Company. In the ASX peer-group on the other hand the small-cap companies have similarly a couple 100 Million or more shares out. It supports trading volume but can be associated with less torque in Share price movement. Final values of the issued shares are summarized in Figure 8 below.

Figure 8: Share Count

The higher share count is closely related to the start-up phase of Enviro. This picture becomes more complete in Figure 10, the assymetric Start-up lift, in the next Chapter. The first years alway come at a cost.

Price / Valuation

The current MCap of NVRO is dancing around the 20 Mil MCap level, as time of writing. Figure 9 is aiming to give a break-down as an intrinsic, asset based BOTE.

They do have the shell with various listings, in the US (OTC), Europe (Frankfurt) and CSE in Canada as a primary listing. Usually shares traded on exchanges other than the primary listing are depository receipts of the stock. Just the shell and the listings are a piece of work and take time, a value for a good shell is estimated at 1 Million.

The operational processing plant was purchased for roughly 2,4 Mil AUD, as a one-off after market opportunity. Replacement costs can be assumed at 10 Mil AUD.

For the NVRO Process, this would somehow need to be aligned to what someone else would be willing to buy it for. This estimation is a tough corner to cut. It could be proportionally way higher, if this turns out to be real and every sign is indicating that it is. Marketable prices of an estimated NAV are usually set at 1/3 of whatever value you have outlined. Another party taking over a project would need to polish, re-brand and then make it marketable with all entailed difficulties. Running the risk of setting the barrier to low, its estimated at 100 with 1/3 equating to 33 Million.

NVRO has just done a financing - Working Capital is at around 3 Mil CAD.

Figure 9: BOTE Value estimation

Versus the BOTE the market is currently valueing the company at 60% of it. This also states the opportunity that we currently see in securities of NVRO. A takeaway of this roughly estimated calculation is that there is enough intrinsic value integrated as an Asset based assumption vs market valuation. That makes a good start.

Another take-away is that from whichever side one tries to attack the value assumption, at 20 Mil MCap there is no growth figures included, if the technology becomes established and a constant revenue streamline is built, the risk is highly mitigated.

For clarification of this point Figure 10 is reflecting the assymetric burden that companies have to carry to get to a positive reward phase. The weight, as in associated risk and work, at the start is improportionally higher. This constitutes the built-up phase, mostly costs, engineering, development, structuring and regulations. For any start-up the figures are against you, with 50% going bust somewhere in the first 5 Years. The Chart of NVRO is also reflecting just that, a built-up phase with risks to be overcome. More on that later. The scheme reflected in Figure 10 of the assymetric lift for Start-ups will be used also in following company reviews of start-up companies. The position of NVRO, from our findings, is one where the heavy lifting has been completed. The risk of the company going bust, is significantly reduced, as we will explore in the next Chapter.

Figure 10: NVRO on the Start-up Lift

Once more corporate development is reported to underline this, also the valuation of Share Price should trend upwards, and it is already on the path of doing just that.

Growth / Exit

The metals production market, that EnviroGold is active in, is constituted of higher production demand than current capacity. While we will refrain from diverging into a a copper deficit discussion, the growing demand of society as a whole with increased renewable energies and electrification is overwhelming. It is key to note that the NVRO Process is applicable for a broad range of metals locked in sulphides including:

Au = Gold
Ag = Silver
Cu = Copper
Ni = Nickel
Zn = Zinc
Pb = Lead
Fe = Iron
Rare Earths

Application of the NVRO process is therefore not restricted to Precious metals, quite the opposite. The accessibility into the various metals production markets is a key facilitor for NVRO, being able to review the most economic and sensible projects in each of the domains.

From a technology stand point there is futher no restriction to apply the NVRO process simultaneously in multiple projects. A characteristic that is mostly found in the Technology industry, which again underlines EnviroGold to be placed into this basket. Mine projects are usually bound to a certain Ore-Body; software for example can be re-produced practically without constraints. In summary, multiple projects are not mutually exclusive to one another. Only if EnviroGold is not succeeding to transition with organic growth of their company to handle multiple projects at the same time.

With the backbone of one business modell, in this case the application of the NVRO Process, good company management is often transitioning to further value generating steamlines. The possibilities for further growth and expansion that can be seen in EnviroGold at first glance in the overall Mining Lifecycle are summarized in Figure 11. There are various sides to attack from for EnviroGold.

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Figure 11: Wide scope of value streamlines

At time of writing Gold has just made another all time high, not just nominally, also refering to an inflation adjusted Gold price. The shiny metals is worth more than, in every currency it could be measured in. Find our extensive article on Gold and purchasing power here.

Increasingly high metal prices and restricted capacity to meet growing demand in the future puts Enviro in a niche position as a facilitator. Economic discovery of Metal Ore-bodies are decreasing year over year, and it takes roughly 15 Years from a discovery to the first metal being poured.

Find Figure 12 below, quickly outlining the different business models that companies usually follow in this market.

Figure 12: Generic Business Models in metal production

The applicatio of the NVRO Process in metals extraction projects has a overall turnaround of 3 Years. The whole mining sector, as its seems now, will be rewarded with higher margins and cash flow looking forward, due to increasingly higher spot prices. With a timely efficient and eased extraction process, EnviroGold can support to close the gap to bring metals to the market. Including the metals that the society requires for a sustained move of energy independence to re-newable energies.

Market Facilitators for Enviro:

Uplifted Metal prices, entailed by:
increased Project economics
Higher profit margins for mining companies and increased Cash-Flow
previously uneconomic projects become attractive
Higher funds for project Budgeting
Projects commences with already produced Tailings
Expedited Turnaround
Net positive contribution to the environment, reducing
Tailings and Waste Management
Water Polution
Soil Polution
Acid Contamination of the surrounding ecoysystem
Mining Company Liabilites and costs
Low CAPEX and OPEX

The wider market, only looking at the after the fact potential projects globally are stated with an astounding estimated value of 3,400,000,000,000,- USD. As summarized in the company presentation, reflected in Figure 13.

Figure 13: Market figures of Tailings

With a very low guidance of 1% of this value being accessible, taking only projects with the most economic figures, that is still a 34 Billion market for EnviroGold to take part in. Only focusing on the metals extraction perimeter. With such a high potential for market returns of their NVRO Process, first pioneering projects will be key. The company has listed the most regarded projects for customer engagement, stated in Figure 14. Some of which are in active Non-Disclosure discussion or in first rough conctractual agreements to scope a potential common project.

Figure 14: Targeted Customers

Technical Chart Set-up

The Long-Term Chart of NVRO, in a logarithmic setting, is a very closely related picture to the start-up phase the company had to go thru, associated with high-risks for the whole endeavor and the shareholders. Only very skilled traders, making use of the downsloping trendline for 10 years had some fun with EnviroGold shares. It is fair to say that up to this point, long-term shareholders had more phases of unease than anything else. It was in a high-volume basing pattern for more than two years, between 2022 and early 2024, and moved toward a technical resistance in March 2024 and failed. It has every characteristic of a new plateau having been built at the 0.04 CAD range. Coming from this very strong plateau the SP is now re-attacking critical resistance points. The high volume area indicated on the far left, is very concentrated between 0.15 and 0.23 Cents, which will be a true technical test if momentum is gained in the stock price longer term.

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Figure 14: NVRO 10 Year Chart, Weekly

Exploding the Chart into a daily view, it can be seen that the price action is very close to the former strong resistance line, which it failed to breaktrough in 2024. This also correlates with the Fibonacci Levels, indicated in the colour codes. Any clear break-out above the 0.09 - 0.10 Cent Range should be a strong indicator for further price increase towards 0.155.

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Figure 15: Zoomed in Chart, Daily

It is in very critical area, now, at time of writing, just below this potential major break-out. It may be held down by this resistance line a little longer and re-converge, whilst the most probable next step is a move across this 10 Year old resistance, followed by an upwards retrace. Beware Tecnnical Analysis only indicates what moves are more likely vs others, also the lower possible scenarios may occur.

Scores and Statistics

Note – These scores are not necessarily completely indicative of the nuanced review above. If you only read these final figures, I can highly recommend that you at least glance at the other sections above in order to get a stronger idea of our opinion about the company.

Company Background

EnviroGold has put together a technique, the NVRO Process, and an associated business model that are virtuous as much as prospective. A true stand-out in a notoriously dirty industry. From an ethical and philosophical stand point, supporting the recycling of mine-waste, while also having a real chance to become a prosperous start-up make it a very unique and likeable combination.

Architecture

As suggested in the dedicated Chapter, the share structure is more diluted than in many other TSX listed companies with >250 Million shares. Also in this regard NVRO is more of an australian company. The combination with a low free-float and high management engagement makes this less of a draw back, also considering that many TSX companies struggle with low trade volume, wich is inherent to a super low share count. The two integrated assets, the NVRO Process and having an operational processing plant sets the company off to a good start.

Growth & Exit

The wide application possibility of the NVRO Process for different metals, in combination with very limited constraints to follow-up on multiple projects at the same time is unique in the metals production world. In that regard EnviroGold has all the characteristics of a technology company. Growth figures for new technological solutions where a true need exists can be off-the-charts. The outlined figures by the company, at least on paper, support the idea that EnviroGold could really transition into a growth phase.

Price / Valuation

Priced at 0.085 per share at time of writing, price point of the shares mixed with the estimated value in our model still constitute an early, comparatively cheap entry. This becomes even more convincing considering the potential that the company has and that further corporate development should be imminent.

Technical Chart

The chart has been in a continuous downslope for many years, to the distress of long-term shareholders. Hereby reflecting the built-up phase that the company had to go thru. At time of writing a new technical set-up is forming, on one side all characteristics of a plateau at 0,04 CAD can be found, with an exhaustion of seller and a reversal. Also the SP is sitting right below major resistance. If the SP keeps hitting on such a resistance line, it should break-out rather sooner than later.

Final Conclusions

EnviroGold has all of the makings of a sensational company and could capture quite a bit of attention in 2025. If the NVRO Process becomes more established, it is adressing one of the THE major global problems in mining. This constitutes a real chance to be a recognizable name long-term. Market and general community awareness has yet to catch-on. With various layers to apply their NVRO Process and a wide range of optionality for value streams, the set-up demonstrates a unique position in the metals production market. The current market environment could be a further driver for this company to grow and expand. Higher metals prices driven by expanded demand, all the while production output not keeping up with the same pace, can float budgeting new projects and new technologies to come into review. Risk is constituted by the NVRO process having yet to proof a real first pioneering project. Full-scope. With built-up phase, revenue and entailed cash-flow for the organisation. This remaining risk is somewaht still priced into the SP, with a clear break-out only marginally moving closer. With underlined corporate development, by more news release and contractually binding project commencement. A seemingly inevitable re-rate could also become imminent.

Disclaimer

At the time of writing this Article, LnL-Research.com, owned shares in the company and may choose to buy or sell at any time without notice. This article does not constitute investment advice and is not a solicitation for any investment. LnL-Research.com does not provide general or specific investment advice and the information on LnL-Research.com should not be considered a recommendation to buy or sell any security, nor any other possible investment vehicle. Each reader is encouraged to consult with his or her personal financial advisor and perform their own comprehensive investment due dilligence. The content provided is for information and entertainment purposes only. Each reader is encouraged to consult with his or her personal financial advisor and perform their own comprehensive investment due dilligence. By opening this page, each reader accepts and agrees to LnL-Research.com`s terms of use and full legal disclaimer. LnL-Reserach.com does not endorse or recommend the business, products, services or securities of any company, or other investment opportunities, mentioned.

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