Yesterday, the share price closed up 0.7% to finish at 68 cents. In comparison, the S&P/ASX All Ordinaries Index finished 0.4% higher.
Let's take a closer look at what's in the new deal.
The SciDev/Fortescue deal
In a statement to the ASX, SciDev announced it would "participate in a commercial trial" with Fortescue Metals. The trial will last one week and be conducted at the Fortescue Solomon Hub in the Pilbara region, Western Australia.
SciDev won the contract through a competitive tender process. Fortescue will pay the company $60,000 for its time.
Fortescue will be trialling SciDev's MaxiFloat technology. According to SciDev's website, MaxiFloat is a range of products intended for the treatment of wastewater in the mining, and oil and gas industries.
Commenting on the deal, SciDev Managing Director and CEO, Lewis Utting said:
The agreement with Fortescue further extends the presence of SciDev chemistry and services across major mining projects in Australia. With water being a premium commodity in the Pilbara, SciDev's technology can add real benefit to our customers as well as reduce their environmental footprint. The continued growth of SciDev and our ability to work with and service major mining companies such as Fortescue highlights the caliber of the SciDev team in executing the technical and commercial evaluations with our customers.
What is mining wastewater and why does it need to be treated?
According to the Commonwealth Scientific and Industrial Research Organisation (CSIRO), mining is very water-intensive. Some the ways water is used in the industry include:
- transportation of ore and waste in slurries
- separation of materials with chemical agents, and
- suppression of dust during processing and transportation.
Water is a scarce resource in Australia. Governments and the industry at large strongly encourage water recycling when possible. Through the mining process, however, water will become polluted. This is why it needs to be contained and treated before it can be recycled back into the environment.
SciDev and Fortescue share price snapshots
At its current level of 68 cents, SciDev's share price is on an upward path. This time last year, shares in the company were selling at 57 cents. In the general panic of COVID-19 the share price reached a low of 25 cents.
Fortescue's share price, similarly, is also trending in the right direction. Just 12 months ago, shares in the miner cost an investor $8.58 each. As of yesterday, the share price was $22.18. That's an impressive 142.1% gain over 52 weeks.
The respective market capitalisations of SciDev and Fortescue Metals are $104.2 million and $68.3 billion.