- Phil Carey
- Jul 28, 2019
- 2 min read
Updated: Jun 15, 2020
In an InsideMarket, Sunday Morning video catch up, this morning we sit down with the Chairman of Phoslock Water Solutions (ASX:PHK).
Phoslock is a company with some simple technology which after 16 years, according to Laurence Freedman AM, is about to finally start generating a reasonable return.
Phoslock's share price has been flat for years, but has risen from $0.08 to $0.42 cents a share, since 2017.
Phoslock Water Solutions owns the global patents (bought from CSIRO) for Phoslock, a process which safely removes phosphates from water.
Phosphates are the food of algal blooms and other nasties, and a major source of pollution around the world.
HOW IT WORKS
In very simple terms, Phoslock is poured into waterways, such as lakes.
Published studies have shown that as it sinks, it attracts phosphate molecules and they stick to the Phoslock molecules.
The two sink to the bottom and the phosphate is turned into an inert and harmless material.
LISTED SINCE 2004, WHAT'S CHANGED ABOUT PHOSLOCK WATER SOLUTIONS?
Apart from refining its core product and application process, Phoslock Water Solutions has developed, over the past few years, an expanded business model by developing other remediation solutions for various water bodies, including running water in canals and rivers.
Phoslock has been cleared for use in drinking water in several key markets, including North America and China.
The company has a factory in China and staff of around 60 and recently posted it's maiden profit.
In 2017, it signed a Strategic Co-Operation Agreement with Beijing BHZQ Environmental Engineering Technology Company Limited.
BHZQ is 70% owned by Beijing Enterprises Water Group (BEWG), a Hong Kong listed company with A$9 billion market capitalisation, the largest water remediation company in Asia and one of the top ten water companies in the world.
According to Phoslock Non Executive Chairman, Laurence Freedman, that agreement and some general hard-slog over the past few years, has put the company on a runway to much bigger things.
He sat down for a chat with InsideMarket's Publisher Phil Carey.
The InsideMarket Private Fund currently does not own shares in Netlinkz or Phoslock, nor have we received payment from the company for this coverage.
We do not recommend or advise to buy or sell PHK shares. Such shares should be considered very speculative, high-risk, and very volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer here. The InsideMarket Private Fund owns shares in Phoslock but we have not received any payment from the company for this coverage.