Mycelx Technologies Corporation LON:MYX the AIM-listed, American, clean water and clean air technology company published a trading update this week.
The company designs and installs filtration systems that remove pollutants, including hydrocarbons, and synthetic chemicals from water and air. Mycelx’s technology is based around its own novel polymer filtration and separation technology.
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Mycelx was established in 1989 by materials scientist, Hal Alper in light of the Exxon Valdez oil spill in Alaska. He was dispirited by the primitive technology used to separate and remove spilled oil from the water. Subsequently the company developed a polymer that would, without using chemical dispersants (which can be as damaging to an environment as the original oil spill), separate oil from water and air. Mycelx’s principal clients are upstream oil and gas explorers and production companies, and oil transportation firms. The company listed on AIM in 2011.
Drill baby, drill!
The company has a global reach, working with oil companies in North America, Africa and the Middle East. It had a solid 2024, but is hoping for a very strong 2025, especially in light of the incoming US President’s pledge to: “Drill, baby, drill!” to ensure US energy independence. The 47th President is also – even before assuming office – putting pressure on strategic partners in Europe to buy more US oil and gas by holding the threat of trade tariffs if people don’t buy more US oil. Good news for US producers, and presumably oil services companies.
Although Mycelx is operating in the Middle East, it is taking a slightly more arms-length approach. It sold the company’s Saudi Arabia business to Twarid Water Treatment in March for around USD4m (GBP3.2m) and established a distribution agreement for its products in the market. Mycelx will earn at least USD1m in the first pay-out due in 2025.
PFAS market will grow to multi-billion industry
The company is also investing more of its time and treasure into its treatments for PFAS (Perfluoroalkyl and Polyfluoroalkyl Substances), a group of synthetic chemicals often used in consumer products, the best-known being Teflon; and REGEN products. REGEN is an advanced back washable media filter used as a secondary filtration system to effectively remove oil droplets and suspended solids with no water treatment chemicals required.
Management feels confident about the coming year, but investors will hope the share price will see a turnaround in 2025. Mycelx’s shares opened the week (6th January) at 37p. This was down 37% over one-year, and ranged between 35p and 66p over a 52-week period.
The company is undergoing a trial period in West Texas, which will run through 1Q25, plus two other ongoing trials. In October it secured a significant USD1.5m Middle East contract and expects at least USD4.9m in revenues for the year-end. This is ahead of expectations of USD4.7m as is the company’s cash reserves at USD1.3m. At the half-way point of last year (in results published in September) Mycelx announced its EBITDA loss year-on-year has widened from USD900,000 to USD 1.1m. However, net loss fell from USD1.5m to USD1.4m.
New capital invested in R&D
The company is feeling optimistic about the coming year. Management is especially excited about the growth of the PFAS remediation market, and think this will become a multi-billion industry. They raised just shy of USD1m in equity in September to invest in PFAS technology and have been developing a close relationship with the US Department of Defence.
Mycelx is a company with a strong technology platform and a focus on emerging environmental challenges. The energy industry remains a key market. But the company’s diversification into PFAS remediation and other areas presents significant long-term growth opportunities. Investors will watch closely to see if Mycelx can translate technological advancements into consistent profitability and a share price rebound.
