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Real Equity: Investment alternative in the recycling industry for high-quality metals

Private individuals and semi-institutional investors are increasingly looking for access to capital market-independent investment opportunities with a positive risk / return ratio. The international industrial company JC ECOMET offers real equity investments in their projects that produce high-quality metals and metal alloys in an energy-efficient, environmentally friendly and highly profitable manner from, for example, metal and electronic waste.

The data hardly needs to be repeated: The Corona crisis has led to almost insane price losses on the international stock exchanges and the deletion of dividends. And even before that, the capital markets were not a calm channel for security- and distribution-oriented investors. One just has to think of the short-term and rapid price losses in the fourth quarter of 2018. Experts continue to expect strong fluctuations in the future – debt raising and zero interest rate policies alone will lead continue to immense amounts of liquidity.

This is why investors in this scenario are looking more than ever for alternative investments that are more or less independent of developments on the capital markets and that enable distributions that are best well above the capital market average. This applies all the more if large amounts are to be allocated to certain projects.

The international industrial company JC ECOMET, based in Lucerne and Hamburg, has created such an alternative. Through the use of optimized plasma furnaces, JC ECOMET obtains high-quality metals and metal alloys from metal and electrical scrap in an energy-efficient and highly profitable manner, thereby considerably reducing environmental pollution compared to traditional metal production. Tons of metal sources are not reused globally and nationally, whether in the modern form of coffee capsules, smartphones and solar modules or traditionally from the automotive and shipping industries. In view of the increasing global demand for “intelligent metals”, for example in the development of light engines as well as in the electrical and IT industry, JC ECOMET has long been met with enormous interest from the manufacturing and metalworking industry, the waste disposal industry and international investors.

The environmental effect is significant. Mining and metalworking represent one of the greatest global ecological challenges. But JC ECOMET reduces CO2 emissions by up to 98 percent compared to traditional production processes. At the same time, energy consumption is reduced by up to 95 percent and no water is used at all. This is not perfectly climate-neutral, but if, for example, the production of one ton of steel traditionally emits about three tons of CO2, it is about 60 kilograms at JC ECOMET.

Through the efficient and market-driven production of high-quality metals and alloys from these inexpensive waste raw materials, JC ECOMET generates attractive returns in which investors can participate. At the same time, lean structures, transparent administration and comprehensive outsourcing ensure a manageable risk profile and high forecast reliability.

In order to finance its expansion into other projects and locations, JC ECOMET therefore offers investors various investment opportunities to invest in JC ECOMET projects. For professional investors, the focus is on volumes from ten million euros as an equity investment, which means that investors become project partners and expand their portfolio with a “real equity” component. A double-digit after-tax return is planned due to the very high yields of the JC ECOMET systems with returns from the second year. The capital employed can be amortized in eight years, and the project will run for 20 years. Long-term purchase agreements ensure that all metals and alloys produced are sold at predetermined sales prices. Each production unit thus guarantees attractive margins and returns.

The operation and maintenance of the plasma furnaces, as well as the production of metals and alloys, are carried out by the JC ECOMET Group and its partners on fixed terms as part of a comprehensive outsourcing contract. This creates enormous security for investors, as does ongoing surveillance. On a daily basis, the ECOMET systems are checked, among other things, with regard to production volumes, product quality, energy efficiency, working hours per ton and payment terms. All relevant data is available to investors in real time. This provides the essential information that family offices, CFOs and other decision-makers need to evaluate investments on a daily basis.