BQE: Momentum Continues with New SART Contract in Canada
What you need to know:• BQE entered into a contract with Hudbay Minerals to progress the engineering design of a SART plant in Manitoba. Detailed engineering is now underway, and the teams are discussing plans for site construction, commissioning, and support.
• This builds onto the streak of contracts that BQE has been signing recently including Eagle Gold on February 18th and the BC Government on December 18th (largest contract in company history).
• We provide a refresher on the SART technology below.
This morning, BQE Water (BQE:TSXV, BTQNF:OTC) reported that it has entered into a contract with Hudbay Minerals Inc. (HBM:TSX, $15B mkt cap) to progress the engineering design of a SART plant at its mill in Snow Lake, Manitoba. This follows a streak of contract wins from BQE, showing investors that its value proposition is gaining traction in the industry, given the rising metals prices. We believe this could be just the beginning for BQE, expanding SART’s presence in Canada. We have made some slight adjustments to our model, increasing technical services revenue for 2026. We reiterate that BQE is positioned to continue compounding revenue at 20% while generating strong cashflow, adding to its already strong balance sheet with $17M in cash. We are maintaining our BUY rating and our $90.00/share target price on BQE.
The contract was awarded following ~6 months of bench scale testing, METSIM modelling, and preliminary engineering as well as due diligence visits of plants operated under BQE technical supervision. Detailed engineering design is now underway, and the respective teams are discussing plans for site construction, commissioning, and ongoing technical SART operations support as the mill is in the issued-for-construction (IFC) phase. This will be the first application of SART in Canada after a dozen plants were built globally.
SART Refresher
Given that it has been some time since our initiation report, we would like to take the opportunity to refresh investors on BQE’s SART technology. SART (sulphidization-acidification-recycling-thickening) recovers soluble metals from cyanide and recycles much of that cyanide. This involves breaking the base metal bond from the WAD complex and precipitating the metal as a commercial-grade concentrate. The cyanide is regenerated as free cyanide and recycled to the gold extraction circuit. BQE’s cyanide (SART) technology is open source; however, since the successful implementation of SART requires unique know-how related to BQE’s patented BioSulphide and Chemsulphide technologies, BQE has established itself as a leader, having been involved in over 80% of the SART industrial applications globally.
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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