Market Insights: Northstar Announces Calgary Project Economics

Northstar (TSXV: ROOF) (OTCQB: ROOOF) Announces Project Economics for its Calgary Scale Up Facility

• Northstar Clean Technologies has released an internal management-prepared economic analysis for its planned expanded-capacity asphalt shingle reprocessing scale up facility in Calgary
• The project economics analysis was based on the recently released independent front-end engineering design (FEED) study
• The Company considered a broad range of both operational and financial assumptions to ultimately arrive on a conservative base case

• Shares in Northstar Clean Technologies opened trading at CA$0.26 per share on the TSXV and US$0.207 per share on the OTCQB

Northstar Clean Technologies has released an internal management-prepared economic analysis for its planned expanded-capacity asphalt shingle reprocessing scale up facility in Calgary. The project economics analysis was based on the recently released independent front-end engineering design (FEED) study that was announced on March 31, 2022, which provided a capital cost estimate for the planned Calgary facility. Highlights include $7.6 million in potential annual revenue per facility, $4.9 million in potential annual gross profit per facility, and $4.0 million in potential annual EBITDA per facility. The following summarizes management’s view on the potential upside of the project economics:

• The Company believes that its pricing assumptions are conservative relative to current market prices and that the pricing assumptions do not include a potential impact of either locational or quality differential for Northstar’s liquid asphalt.
• The Company believes its liquid asphalt product has the potential to be North America’s lowest carbon footprint asphalt and therefore could potentially command a premium to market prices.
• The planned scale up facility is assumed to run 10 hours per day and 5 days a week.
• Carbon credits are not factored into the Company’s revenue model. The Company assumes 0% of carbon credits are sold throughout the life of the project.
• The Company’s revenue model assumes that the Company receives only 85% of its feedstock from landfill diversion, with the remaining 15% generating no tipping fee revenue.
• The Company’s revenue model factors a facility capacity of 95%, includes a 2-week shutdown period (excluded from the capacity figures) and a 95% yield per product.

“While these results are exciting for our Company, we believe a clear pathway to further upside may be available,” commented Northstar’s President and CEO Aidan Mills. “Not only can we help provide major municipalities across Canada and the United States with a unique circular economy and modular solution for reprocessing single-use asphalt shingles,” he added, “but we hope that we can increase shareholder value and provide additional benefits to our various stakeholders.” Northstar Clean Technologies Inc. is a Vancouver-based clean technology company focused on the sustainable recovery and reprocessing of asphalt shingles. Shares in Northstar Clean Technologies (ROOF) opened trading at CA$0.26 per share on the TSXV and US$0.207 per share on the OTCQB. To learn more about Northstar Clean Technologies and its innovative processes, visit the Company’s website. To read the full press release, click here. About the Kinvestor Network The Kinvestor Network is an exclusive network of investors that want access to enhanced research and reporting. Members of the Kinvestor Network have access to exclusive articles, reports, models and various other tools that investors may find useful.  Visit the Kinvestor Network for more free content, including in-depth research reports, industry documentaries, CEO interviews, and more. Please read this disclaimer in its entirety before reviewing any opinions, views or information expressed by Kin Communications Inc. (“Kin”).