The novel Israeli Canadian plastic recycling company found a way to turn toxic plastic waste into massive profits. They have discovered the modern-day equivalent of medieval alchemy of turning metal into gold. Alkemy raised funds and start trading on the Toronto Stock Exchange this week under AKMY.V
Plastic recycling is a global mess. With less than 10 percent of world plastic recycled today, the production of new, virgin plastic grows annually in terrifying quantities. What compounds the problem is that used plastic is being buried into the earth or incinerated into our atmosphere, causing massive pollution. Plastic waste and particles find their way into our oceans and the food we consume daily. There is no news in these sad and alarming facts.
Recycling can solve the majority of the problem but the economy of recycling of plastic leaves no room for enough profits for corporate "Earth" to sink their teeth into it on a global basis. Governments provide incentives and grants, but still, there is simply not enough profit in this business, no a financial one for that matter.
Alkemy (www.Alkemy.solutions) is changing all that. Over three years in development, their scientists and engineers found a revolutionary recycling plastic method while keeping the profits exceptionally high.
Their Toronto Stock Exchange filing statement claims a proven track record of over 30% operational margin on recycling versus the 15% industry standard.
These figures are nothing short of game changing. Alkemy's 'Waste-to-Product' one-step plastic goods manufacturing protocol creates new plastic products out of 100% recycled plastics that no one wants to touch today.
Placing Alkemy factories globally on dumping sites can decrease plastic pollution by over 60% within less than a decade. This is good news for environmental activists as well as our children, but moreover, this is a potential multi-unicorn story.
With 30% EBITA (and room for further improvement), Alkemy has ROI within less than 36 months on each plant they establish. This translates into multibillion dollar potential profits within the next five years tied directly and linearly into their rate of setting those Alkemy wonder factories.
Alkemy has declared in their filing statement to be in advanced discussions with Germany and France for the first deployments of Alkemy plants during 2021.
At the intended $C0.29 per share IPO opening price, none of this upside is built into their valuation. Their technology is not at the R&D stage and seems to be mainly under the radar for the past three years. They are non-hyped and non-promoted globally, which makes the potential upside even more interesting.
The risks are vast in this business: regulation, red tape, execution, and a myriad array of pitfalls en route to global success. But Alkemy seems on solid ground there with a highly experienced team of managers that ran multibillion dollar multinational corporations in their past, coupled with strong governmental ties.
Alkemy may be the environmental hope for our future and a hyper-growth potential financial play. It is a unique combination of sustainability and profits, which usually negate each other. Alkemy is a company to follow for many different reasons, and now it will be public and transparent for all of us to share the hope for a cleaner planet.