Northstar Clean Technologies (OTCPK:ROOO.F) 2025 Conference Transcript

Northstar Clean Technologies Conference Summary Company Overview - Company Name: Northstar Clean Technologies - Ticker Symbols: ROOOF (OTCPK), ROOF (TSXV) - Industry Focus: Waste management and recycling, specifically asphalt shingle recycling Key Points and Arguments Market Opportunity - Landfill Waste: Approximately 16.5 million tons of asphalt shingles are sent to landfills annually, equating to over 20 million barrels of oil per year [7] - Industry Goals: The Asphalt Roofing Manufacturers Association (ARMA) aims to reduce landfill shingles by 50% by 2035 and achieve 100% diversion by 2050 [8] - Facility Capacity: The Northstar facility can divert 40,000 tons of shingles per year, with potential to double to 80,000 tons if operated continuously [8] Revenue Model - Revenue Streams: Revenue is generated from two main sources: - Tipping Fees: Approximately CAD 113 per ton for shingles diverted from landfills, contributing about 35% of total revenue [9][12] - Product Sales: Revenue from extracted materials, particularly asphalt, which can sell for CAD 500 to CAD 1,000 per ton, making up about 65% of total revenue [11][12] Operational Insights - Facility Construction: The first commercial facility in Calgary is currently being ramped up for operations, with expectations for cash flow generation [5] - Feedstock Supply Agreements: Secured agreements with Calgary municipality for the collection and segregation of shingles, ensuring a steady supply of feedstock [15] - Partnerships: 20% ownership by TAMKO, a U.S. shingle manufacturer, which provides guaranteed offtake agreements for asphalt produced [13][17] Financial Projections - Facility Economics: A 40,000-ton facility costs about CAD 25 million to build, generating approximately CAD 10 million in revenue and CAD 5 million in EBITDA annually [19] - Growth Strategy: Plans to build 10 facilities to reach a market cap of CAD 1 billion, with a focus on regions with high tipping fees [22][23] Expansion Plans - Future Facilities: Identified locations for future facilities include Hamilton, Ontario, and a site near TAMKO's facility in Maryland, with plans for additional U.S. facilities [20][21] - Market Size: To address the U.S. market, Northstar estimates needing between 200 to 400 facilities to service 50% of the addressable market [34] Additional Important Information - Government Support: Received CAD 7.1 million in non-dilutive funding from Emissions Reduction Alberta [18] - Operational Timeline: The permitting process for new facilities typically takes about one year, followed by six months of construction and two to three months of commissioning [31] - Technical Risks: The company has de-risked its operations significantly, producing high-quality asphalt oil and learning from the commissioning of the Calgary facility [32] This summary encapsulates the key insights and strategic direction of Northstar Clean Technologies as discussed in the conference.