Midwest Energy Emissions Corp, also known as ME2C Environmental, has told investors it expects to report significant full-year 2021 revenue growth and to realize positive cash flow from its operations for the foreseeable future.
Revenues for the third quarter of fiscal 2021 are expected to increase by about 75% to at least $4.9 million from $2.8 million in the same quarter last year, while fourth-quarter revenues are likely to reach $4 million, the company said in an operational summary and preliminary results statement.
“Our revenue from this third quarter is our highest revenue quarter in over three years; the last time our revenues exceeded $4 million in any quarter was 3Q 2018,” CEO Richard MacPherson said in the statement.
“Our third quarter was highlighted by substantial developments in key areas related to strategic growth initiatives. Over the last few months, we have announced additional supply agreements in our core business, mercury emissions capture, and promising results from the recent lab testing of our emerging technology in rare earth element extraction."
READ: ME2C Environmental announces new license agreement for its patented technology with Midwest utility
The company attributed the expected growth to increased supply demands in the coal-fired market as well as new supply business with Vistra Corp stemming from a license agreement reached in late 2020.
It said the fundamental growth in its mercury emissions supply business, announced late last year, has taken some time to reflect in its revenues but is now beginning to take effect.
“Our momentum has accelerated throughout 2021, and we expect to continue growing our revenue base and to generate positive cash flows from operations going forward, ultimately generating sustainable value for our shareholders,” MacPherson said.
During the quarter to September 30, the company said it completed Phase 1 testing of its Rare Earth Element (REE) Technology with Pennsylvania State University’s College of Earth and Mineral Sciences confirming an 80-90% efficiency rate in extracting select REEs.
It also signed a five-year license agreement with a utility in the Midwest US to provide a non-exclusive license to certain ME2C patents for use in connection with the utility’s coal-fired power plant.
And it received approval from the District Judge of the US District Court in Delaware of the adoption of the report and recommendation of the Magistrate Judge to allow it to proceed with litigation claims against certain refined coal entities as named in a 2019 lawsuit. It said this provides “exciting forward momentum” in its significant lawsuit to rightfully protect its patented technology for mercury emissions capture.
“We are pleased with the recent progress in this effort to enforcing our patent position for our shareholders,” MacPherson said.
“With the refined coal tax credit program concluding in December 2021, ME2C Environmental is strongly positioned to gain additional supply business from the power plants that have been using refined coal.”
ME2C said it is moving forward with the next testing phase of its REE technology in the near term, which will focus on its regeneration capabilities and will introduce real-world conditions, such as coal ash and other minerals while concurrently progressing with in-field testing in the fourth quarter.
The company said its third-quarter results will be finalized and released in mid-November.
ME2C Environmental is a leading environmental technologies company developing and delivering patented and proprietary solutions to the global power industry.
The company’s leading-edge services have been shown to achieve emissions removal at a significantly lower cost and with less operational impact than currently used methods while maintaining and/or increasing power plant output and preserving the marketability of byproducts for beneficial use.
Contact the author at stephen.gunnion@proactiveinvestors.com