release031921st Sector Newswire - ST.C

Sector NewswireTM

Sector:  Mining, Precious Metals  :

 

News Release -  June 30, 2022 4:35 PM ET    - Editorial Release

 

 

dynaCERT HG Technology Gains Traction in Mining, Announces Voting Results from AGM and Completion of Review

 

NEW YORK, NY, June 30, 2022 /Sector Newswire/ -- dynaCERT Inc. (TSX: DYA) (OTCQX: DYFSF) (Frankfurt: DMJ) announced the results of the annual and special meeting of its shareholders, which was completed June 29, 2022, see related news release "dynaCERT Announces Voting Results from Annual Meeting and Completion of Review".

 

Additionally, dynaCERT inc. is the subject of a Technology MarketWatch Journal Review in an article entitled "dynaCERT Fuel-Saving Carbon Emission Reduction Technology Sees Rising Level of Interest" <== Click to view full copy from source.

 

Excerpt:

 

dynaCERT Inc. (TSX: DYA) (OTCQX: DYFSF) (Frankfurt: DMJ) is a Canadian-based emerging Environmental, Social and Governance (ESG) company focused on advancing its HydraGENTM (HG) Carbon Emission Reduction Technology and commercializing its ability to generate related Carbon Credits. dynaCERT Inc. presents exceptional opportunity for investors establishing a long position now as the Company finally gets back to meaningful marketing after a long Covid-19 hiatus, as higher diesel gas prices persist, and as successful pilot programs come to maturation, a confluence of events have resulted in a dramatic increase of interest in its technology. dynaCERT's HG technology has seen over $90 million in investment over the last 18 years to perfect it to the point its ready to scale with demand, with major potential as the only company with the patents and technology, proven, in production, and able to provide an immediate solution to reduce global air pollution (all while the user saves on fuel costs in the process).

 

What is HydraGENTM Technology?: dynaCERT tech essentially turns diesel engines into clean power. HG technology generates pure (elemental) H2 & O2 gases individually, on demand (not stored), and injects in a timed fashion interfaced with the engines onboard computer to burn diesel more completely, resulting in more power, less carbon fouling, and a reduction in pollutants. HG technology is controlled by a smart-ECU (the brains of the unit that interfaces with a truck engine’s computer) which can record the fuel savings and emission reductions while in operation, and provide an audit trail, essentially a greenhouse gas tracking system with the ability to account for future carbon credits. HG technology is proven world-wide in numerous rigorous high-level government and private testing programs to reduce harmful emission in diesel transport trucks; NOx reductions of up to 88%, CO reduction of up to 47%, total hydrocarbons reduction up to 57%, and reduction of particulate matter of up to 55% (eliminating black smoke), providing better torque, lowering maintenance costs, all while providing fuel-savings between 6% - 19%, and up to 51% reduction in DEF (diesel exhaust fluid) -- results which are unmatched by any other current technology.

 

Why is HG Technology Key in Today's Environment?: NOx is extremely hazardous to people's health and to the environment, contributing to the formation of smog and acid rain, as well as deteriorating the earth's protective tropospheric ozone. Besides saving the user money, the technology helps businesses operate in an environmentally sustainable fashion. NOx, CO, CO2, THC, and particulates are all harmful to the environment and are drastically cut with HG technology.

 

 

Figure 1. (above) HG1 Unit installed on diesel truck.

 

What are dynaCERT's Carbon Credits?

 

dynaCERT holds the world wide patents on the means and methods of monitoring and monetizing carbon credits within emission reductions in diesel engines, dynaCERT holds this in 12 different verticals. dynaCERT's technology is able to produce carbon credits and it has a mechanism for the end-user to share 50% of the revenue. dynaCERT has the infrastructure and data center in place to launch this as a recurring revenue stream for both the company and end-users; it is in the final process with Verra (the leading global certification body and carbon credit exchange), the methodology is already approved, and the recognition of the technology's creation of carbon credits is already approved, Verra is just going through the final audit stage. The CEO of dynaCERT stated in May-2022 "we are expecting at some point this year we will actually be offering these carbon credits ... we have spent a lot of time, a lot of money and a lot of effort to get to this point." Verified Carbon Standard (VCS) Progam by Verra is the world's leading voluntary program for the certification of greenhouse gas emission reduction projects. The current price tag on carbon credits in the voluntary market is ~USD$60/t, in dynaCERT's long-haul trucking market alone each truck could potentially generate approximately a couple thousands of dollars in carbon credits per annum, and many experts predict the price will rise to $400 - $500/t within the next few years.

 

------ ------ ------      ------ ------ ------      ------ ------ ------

  

dynaCERT Inc. presents exceptional opportunity now & is poised for ramp-up in valuation

 

 

3 year chart as of June 24, 2022 -- Valuation commentary for this article is provided by Market Equities Research Group: Making the case for near-term multiple valuation appreciation as the turn-around is underway; the phone is ringing due to high diesel prices and increased awareness, pilot programs are yielding phenomenal results as is evidenced by recent mining sale (extra-large HG units that have massive price tags and healthy margins), various government incentives for customers to adopt technology are increasing and more are being discussed, governments and businesses are pushing for ESG, dynaCERT’s proprietary carbon credit system expected be 100% cleared Verra by year-end, and pipeline products will open new doors. Recent warrant expiration has occurred lessening potential dilution, and the AGM set for the end of June should be positively affirming.

 

The share price of dynaCERT is apt to experience upside revaluation as the reality of the magnitude of demand building for its technology is appreciated by the market: This May-2022 is the first time the CEO of dynaCERT has given a public interview since the start of Covid-19 (click here to view the May 19, 2022 International Investment Forum Interview [running time 37 min.]). Going into Covid-19 the stock price was clipping along well above $1/share (with a >C$300M marketcap), orders were rolling in and momentum for the technology was high, then suddenly everything stopped (due to Covid the last 2 years have been brutal on dynaCERT -- marketing, production, training of installers, sales -- all came to a halt). The interview signals that operationally dynaCERT is now back, returning to full-swing, and investors should take note of the bullishness, here is a selection of some operational related takeaway notes we made listening to the interview;

  • Only since May-2022 has dynaCERT (and its dealer network) returned to aggressively marketing to the trucking industry. HG1 units now appear on everything from class-8 trucks, highway busses, municipality busses, to construction equipment -- in-fact, dynaCERT recently put out a news release on May 19, 2022 regarding a company servicing the oil fields in the oil service industry -- the HG technology has really taken off there, they are seeing great results on the diesel engines running the rigs, and the opportunity is huge -- just the beginning for this company as there is an application process for incentives through the government to outfit their entire fleet (if approved). The class-8 truck sector is massive and dynaCERT is once again seeing results with repeat orders coming in. dynaCERT's CEO reiterated how it is aggressively marketing its products again and stated "you will be seeing a lot of news coming up in the near future concerning this." It is almost like a switch has been flipped, people are meeting again and the trucking industry is very keen to not only control emissions but also find relief from high diesel prices; the CEO stated "they are calling us, calling our dealers, there are quotes going out on a daily basis because obviously the fuel price soaring, where it is now, they are looking for anything to save fuel. Now they are all coming back and saying even at 5% fuel savings this is a no-brainer."

 

  • The May 26, 2022 news "dynaCERT Equips Open Pit Mines with Carbon Emission Reduction Technology" shows repeat orders for the larger (e.g. HGC4, C6) units for monstrous earth moving machines that burn millions of dollars worth of diesel a year, these come with large price tags and margins, and are increasingly part of the equation now. dynaCERT and its dealers have invested significant amounts of time and effort to get to the point where mining industry customers are comfortable with HG technology, and dynaCERT now has some of the largest leading mines in the world (that all miners look to emulate) onboard. Miners that were running pilot projects have now started to give additional orders, besides improving air quality and lessening its footprint on the environment, at just 5% fuel savings this is major for them. Pilot projects involving different municipalities also appear to be aggressively moving forward. Same with a large power supply company; they are into their 4th month of a 6 month pilot, and every month they have exceeded what their requirements were for them to committing their entire fleet. Additionally, the CEO confirmed dynaCERT is "in talks with some locomotive companies."

In-short, the chemistry and excitement that saw DYA.TO clipping away near highs over $1/share in early 2020 appears to be rematerializing and the stock appears on fire-sale here. There is also a new concerted Federal effort in Canada (which dynaCERT is based out of) to see emissions cut in select industries (industries that dynaCERT is making impressive gains in); e.g. see "Canadian government pledges up to $100M to help reduce emissions at future BHP potash mine in Sask." Various equipment fleet professionals and engineers in-the-know will freely admit 'dynaCERT' is a name openly being discussed / offered as part of the solution in multiple key venues now. HG related news flow is expected to be increasingly robust as the year progresses, throw in carbon credit finalization (in the genesis of a separate potential trillion dollar market) and investors are apt to experience a home-run.

 

------ ------ ------      ------ ------ ------      ------ ------ ------

 

dynaCERT Inc. currently has a market cap of only ~C$50 million, miniscule compared to where the Company is headed. Famed billionaire investor Eric Sprott currently owns ~8% of dynaCERT stock, he got involved because of the future of carbon credits and stated "I don't see a company out there better positioned to take advantage of that". We note that new investors establishing a long position now are getting involved at a price significantly lower than what Eric Sprott paid. Management & insiders have a fair amount of skin-in-the-game owning ~31% of the company, family offices own ~13%, institutions own ~5%, and retail shareholders hold ~42%. dynaCERT Inc. has institutional analyst coverage from two entities; 1) Haywood Securities, which views dynaCERT as an ESG benefactor with a Carbon Emission Reduction Technology that took years to perfect and is now ready to scale, and 2) the independent investment bank GBC AG which sees a pathway for significantly higher prices than the current via a multi-phase adoption curve.

 

Diesel engines are the lifeblood of all economies, and the size of the market potential is enormous (over one billion diesel engines operating worldwide on all types of diesel equipment). dynaCERT has 47 qualified dealers and agents globally that service 55 countries. It won't take long for the economics to flourish, especially considering the healthy gross profit margins per unit (dynaCERT’s cost is ~50% of the wholesale price = ~100% profit margin). dynaCERT currently has a state-of-the-art semi-automated manufacturing/assembly plant in Toronto, Ontario Canada which can produce 2,000 units per month on a single shift, and if need be double and triple that output when demand surges.

 

------ ------ ------      ------ ------ ------      ------ ------ ------

 

Below is an overview of dynaCERT's product line, product pipeline, and insight into the technology:

 

 

Figure 2. (above) -- HG units: The HG2 series was originally designed for refrigerated containers on trucks, which are small but often run 24/7. The HG2 units are also now applied to the engines of small to mid-size delivery trucks. The HG1 product is dynaCERT's flagship/go-to-market series for trucks (e.g. class 8). The HG4 and HG6 series of units were launched initially ~2 years ago and dynaCERT has since perfected them (e.g. recently added new air ride suspension system) for targeted industries; ideal for large stationary generators and heavy equipment used in the mining industry.

 

 

Figure 3. (above) -- Industries Served in 12 Different Verticals.

 

dynaCERT’s current market: The Company currently installs HG technology on buses, refrigerator trailers, small trucks, class 8 trucks, electrical power generation units of all sizes, farming equipment and agriculture equipment, construction equipment, mining equipment, and it is now moving into marine vessels. The Company believes it will also at some point in the future be installing its technology on ocean going vessels, train locomotives, and diesel passenger vehicles.

 

------ ------ ------      ------ ------ ------      ------ ------ ------

 

Independent Validations and Certifications

 

 

Figure 4. (above) -- List of organizations that have verified the efficacy of dynaCERT's HG technology.

 

The PIT Group (considered the gold standard in Canada for transportation industry) validated the HG1 product under what they said is the optimum running condition of a truck; at a set speed of 100 km/hr for 100 km, they attained 5.9% improvement in fuel economy with the HG1 technology on top of what was already considered the optimal performance (without) – the engineers came back and put in writing that this was "results to be envied by the world.

 

In Germany at Continental and EMITEC (for KBA Homologation, in order to sell in the EU), they verified the efficacy of dynaCERT’s HG technology on trucks and engineers had to go back repeatedly to re-test as they were literally stunned -- saying it was impossible, the improvement in results they were verifying; the results were so impressive they had to bring in an outside independent set of engineers to do the tests – they still got the same impressive results. When the findings were presented for KBA Homologation they were told to go back and verify it again – which they did.

 

HydraLyticaTM is dynaCERT’s proprietary software with remote real-time telematics for monitoring performance and other fleet tracking / management functions. dynaCERT's telematics developer invented key systems for Apple PayTM and PayPalTM.

 

------ ------ ------      ------ ------ ------      ------ ------ ------

 

Market Size

 

 

Figure 5. (above) -- Market Size. The potential market is enormous.

 

------ ------ ------      ------ ------ ------      ------ ------ ------

 

HG1 for class 8 trucks value proposition for the end-user

 

 

Figure 6. (above) -- Value proposition for the end-user; a typical user will experience a return on investment in under 9 months. The ROI on dynaCERT's HG technology has a three-times better value proposition in terms of capital outlay to savings compared to skirts on trucks, which are ubiquitous now (skirts cost C$3,000 can save 1% fuel, HG1 Cost the end-user ~C $10,000 and can save ~10% fuel = 1% for C$1,000). When skirts first came out adoption started slowly then the adoption industry-wide came very fast -- dynaCERT's HG technology stands a good chance to experience a parabolic adoption curve in time.

 

------ ------ ------      ------ ------ ------      ------ ------ ------

 

Recap of emission benefits

 

 

Figure 7. (above) Emission benefits. Image source: dynaCERT's Corporate Presentation

 

------ ------ ------      ------ ------ ------      ------ ------ ------

 

Recap of economic benefits

 

 

Figure 8. (above) Economic benefits. Image source: dynaCERT's Corporate Presentation

 

------ ------ ------      ------ ------ ------      ------ ------ ------

 

The Bottom Line

 

Shares of dynaCERT Inc. have highly favourable risk-reward metrics and present exceptional opportunity. dynaCERT Inc. is uniquely positioned in its field, competitors are essentially brown gas novelties in comparison (not viable competition); dynaCERT produces pure elements on demand and has highly sophisticated proprietary delivery and monitoring / auditing technology recognised by certifying bodies and leading engine manufacturers.

 

There are extremely high barriers to entry that uniquely position dynaCERT at the fore:

  • Worldwide Patents + Unique ECU (Electronic Control Unit).

  • Technological advantage: e.g., weather robustness, separation method of H2 and O2.

  • Lead Time advantage: $90 million & 18 years to develop the Technology.

  • Regulatory advantage: Certification in global jurisdictions takes years.

  • Distribution Network advantage: e.g., 47 qualified dealers globally.

  • First-to-Market advantage: across many verticals, e.g., transportation, mining, oil & gas, generators, construction.

 


  

The full Technology MarketWatch Journal review may be viewed at https://technologymarketwatch.com/dya.htm online.

 

 # #

 

 

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL(s).

 

 

SOURCE: Sector Newswire editorial

editorial@SectorNewswire.com

 

Additional Disclaimer and Disclosure I Contact I Terms and Conditions I Copyright I Privacy Policy