BQE: Signs New Contract; Increasing Target Price
What you need to know:• BQE reported that it has signed a contract to operate the water treatment plant at the Eagle Gold Mine in 2026. We remind readers that BQE has been working on this site since September 2024.
• We also remind readers that in December, BQE signed its largest contract in history, to operate the water treatment plant at the Britannia Mine.
• Management continues to execute on growth, and as such, we are increasing our target price based on rolling forward our valuation year to 2026, where we assume $10.9M in adjusted EBITDA.
This morning, BQE Water (BQE:TSXV, BTQNF:OTC) announced that it has signed a contract with PricewaterhouseCoopers to operate the water treatment plant at Eagle Gold Mine in the first half of 2026. The BQE management team continues to execute on providing highly specialized and important services while growing its revenue base. Today’s announcement aids in our expectation of another year of ~20% growth. BQE remains undervalued in our view, trading at just 7.3x 2026E EBITDA for a high-quality business with a strong growth profile, cash generation, and balance sheet. We are rolling forward our valuation year to 2026, resulting in an increased target price. We are maintaining our BUY rating and increasing our target price to $90.00/share (previous $80.00/share) on BQE Water.
The scope of the services is the same as those performed in 2025, with the objective of managing the volume of contaminated water on site during and immediately following the 2026 spring freshet using the treatment system installed in 2024 and operated in 2025. The services will be delivered in partnership with the Na-Cho Nyäk Dun Development Corporation (NNDDC) and Big River Operations (BRO). We remind readers that BQE developed and implemented the treatment process at Eagle, combining existing plant equipment with off-the-shelf rental equipment and newly constructed ponds. Today’s contract again speaks to the fact that BQE is at the forefront of its industry, being selected for such high-profile cases, building its brand value and reputation.
BQE Water is engaged in the acquisition and development of processes to treat metal-laden, sulphate-rich waste water streams for acid neutralization and metal recovery. The principal operations of Co. are to build process plants and earn revenues from recovered metals, treatment fees, plant sales and process licenses.
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