The Clean TeQ share price has risen by in early morning trading after announcing two new additional water purification contracts.
The post Why the Clean TeQ (ASX:CLQ) share price is surging 6% appeared first on The Motley Fool Australia. –
Clean TeQ Holdings Limited (ASX: CLQ) shares have risen by 6% in early morning trading, after the company announced it has secured two new additional water purification contracts in Queensland and Oman. At the time of writing, the Clean TeQ share price is trading up by 1.5 cents to 26.5 cents.
The Clean TeQ share price is surging higher today after the company reported it has won a competitive tender. In its announcement, Clean TeQ advised it has been awarded a contract valued at over $2 million by the Mackay Regional Council for the upgrade of a bore water treatment plant at Koumala.
In this agreement, Clean TeQ will design, supply, and install an ion exchange treatment to remove hardness and lower the salinity of an existing bore water supply.
This is done in order to reduce the scaling of pipes, and improve taste for use in the potable water supply of Koumala.
Clean TeQ will manage the full design, procurement, construction and commissioning of the plant including subcontracting of civil works.
The program of works is scheduled to commence in the first quarter of 2021, and run through to the end of the year.
In late 2019, Clean TeQ was was engaged by Multotec, the company’s sales and delivery partner in Africa, to deliver a waste water treatment system at an antimony processing facility in Oman.
The company’s DESLAX technology was used in this project to remove a range of deleterious elements from up to 200 tonnes of waste water per day.
By treating the waste, the customer is able to recycle a significant proportion of the water for re-use in its processing plant, rather than disposing of it.
This provides a valuable cost saving for the customer in a geographic location where water is relatively scarce.
In today’s announcement, Clean TeQ advised it has been awarded a contract to undertake the detailed design for an upgrade of this water treatment plant.
The upgrade will focus on neutralising the waste liquors, and precipitating contaminants for easier recovery.
Clean TeQ Managing Director and CEO Sam Riggall was pleased with the contract wins, saying:
Our water business continues to build on the successes achieved over the past year. Having demonstrated our capability in designing, constructing and commissioning our highly effective proprietary water purification systems in a range of different applications, our focus is now shifting towards revenue growth.
More about Clean TeQ
Based in Melbourne, Clean TeQ Holdings provides services in metals recovery and industrial water treatment. The company applies its proprietary continuous ion exchange technology via its wholly owned subsidiary, Clean TeQ Water.
Clean TeQ also owns 100% of the Clean TeQ Sunrise Project in New South Wales. The company counts this among the largest cobalt deposits outside of Africa. It also has some of the largest and highest-grade accumulations of scandium on the planet.
About the Clean TeQ share price
The Clean TeQ share price has risen by around 20% over the past year. Clean TeQ shares dipped by as much as 45% in March 2020, before recovering to their current levels.
Based on the current Clean TeQ share price, the company commands a market capitalisation of $202 million.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.