SusGlobal’s (OTCQB:SNRG) primary projects divert organic waste from landfills and use proprietary technologies to process and produce regenerative products. The process itself is sustainable (and profitable) because the diversion reduces Greenhouse Gas (GHG) Emissions and the process of treating the waste also generates valuable products contributing to the Circular Economy. Better still, the end products of the process are an eco-friendly compost and a liquid fertilizer that the agriculture sector is increasingly looking to as a replacement for chemical-based fertilizers.
The market for the dry form and the liquid form of SusGlobal’s end products are both high-growth, with the dry-form market expected to grow by 8.5% a year to $2.7 billion by 2023 and the liquid-form market expected to grow 9.8% annually to $1.9 billion by 2023. Between its “SusGro™” liquid fertilizer and “Earth’s Journey® Compost,” SusGlobal has access to a number of revenue streams with its projects. Add in the tipping fees the company receives from governments for processing organic waste… and potential revenue from cap and trade programs on greenhouse gas emissions…and you have a business model tailor-made for the “Green Revolution.”
SusGlobal has three core projects so far, two in Canada and one in Florida. The company’s Belleville project in Belleville, Ontario uses aerobic composting in its proprietary automated organics waste and composting processing plant. The site has approval for up to 120,000 tonnes/year of organics processing and produces the company’s Earth’s Journey Compost product and will in the near future produce a proprietary organic liquid fertilizer as part of their leachate management solution.
SusGlobal will also have an organic waste processing concession in Hamilton, Ontario, which will produce and commercialize its proprietary pathogen free organic liquid fertilizer under its SusGro™ brand and under the PlantLife Energy™ brand specific solutions for the wine, cannabis and agriculture industries. The site has approval for up to 65,000 tonnes/year of organic waste processing. Finally, in the U.S., SusGlobal has an interesting opportunity to generate Earth’s Journey Compost from organic wastes in Fort Myers, Florida. It’s a perfect setting for SusGlobal, as recent hurricanes in the area have created a large supply of organic waste. Plus, thanks to its large agricultural sector, Florida has a ready-made market for SusGlobal’s end product.
Net Income Is Forecast to Quadruple
How lucrative is this opportunity? SusGlobal is forecasting sales in 2021 of C$25 million, predicated largely on the sale of its SusGro liquid fertilizer product. With posttax net income of C$7 million, the company should have a solid base of earnings to work from. Over the next five years, as the projects in its portfolio come online, SusGlobal expects revenues to grow over C$80 million by 2024 and for net income to quadruple to C$28 million. Those are ambitious goals to be sure — but consider that SusGlobal already has the available capacity to make them a reality. Better still, it boasts a tight share structure. That means success on the development front (and potential new project acquisitions) have the potential to make its share price really pop.
And when you consider all that is working in its favor, that pop seems both inevitable and imminent:
• Sustainability — perhaps the most powerful trend in today’s world — putting the wind at your back. Plus…
• …An innovative, proprietary technology that…
• …Earns revenue to address a major environmental problem in waste treatment…
• …And produces valuable end-products for very significant, additional revenue streams…
• …All adding up to projections of near-term, rapidly growing earnings. What more could an investor ask for?
As the company gears up for rapid growth, the window is open to get in on SusGlobal Energy Corp. (OTCQB:SNRG), now, before the rest of the market catches up to this ripe opportunity.
Bottom line: Investors looking to cash in on the Green Revolution and True Circular Economy Models need to take a serious look at this innovative, rapidly growing company.
