Biffa (BIFF) & Renewi (RWI): 2 waste management stocks to buy

Highlights

• The Royal Mint Limited plans to set up a new plant in South Wales to recover gold and other valuable metals from electronic waste.
• The Royal Mint will use the patented technology developed by the Canadian-based start-up Excir, which uses different chemicals to extract 99% gold from e-waste items within seconds.
• Biffa Plc and Renewi Plc are two FTSE-listed companies involved in the recycling of waste.

 

The Royal Mint Limited, a government-owned company responsible for producing coins in the UK, has announced plans to set up a new plant in South Wales to recover gold and other precious metals from electronic waste like discarded laptops and mobile phones.

The new site will likely to be operational by 2023 and is expected to process 90 tonnes of e-waste per week, including circuit boards. The gold extracted from e-waste will be used to make commemorative coins.

The Royal Mint will use the patented technology developed by the Canadian-based start-up Excir, which uses different chemicals to extract 99% gold from e-waste items within seconds. In addition, the entire process will take place at room temperature rather than the costly and time-consuming high-temperature smelting process.

Besides electronic waste management, many other projects operate in the UK to turn waste into a wide range of recycled products. The growing urbanisation and population growth have produced tonnes of waste, which offers a golden opportunity for many companies in the waste management segment.

Many UK-based companies are already using several ways of waste management like recycling waste into useful products, converting waste into energy and fuel, and other similar projects to deal with waste and provide a sustainable waste management solution.

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Let us look at 2 FTSE listed companies operating in the waste management segment:

Biffa Plc (LON: BIFF)

FTSE 250 listed company is involved in the collection and recycling of waste into energy and products like papers, glasses, and other items. It has main operations in the UK.

Biffa recently issued a business update for 52 weeks ending on 25 March 2022. Overall, the business performance was in line with the expectations, with a 35% rise in net revenue for the 11 months to February 2022. All key business segments like collections and specialist services reported excellent performance. Also, the company completed acquisitions of The Simply Waste and Viridor, which are trading in line with the expectations.

Biffa Plc has delivered a consistent performance in the last few years. Also, access to a large amount of waste easily provides the company with different growth opportunities in the waste management segment. The company’s board has a positive outlook and expects business to outperform in upcoming years. The company will announce its full-year result on 16 June 2022.

Biffa Plc’s last close was at GBX 335 on 21 March 2022, with a market cap of £1,024 million.

Renewi Plc (LON: RWI)

The company is involved in the collection and treatment of commercial and industrial waste in the UK and other European countries.

For the third quarter ended 31 December 2021, Renewi reported excellent business performance driven by a higher price for recycled products. The business performance of key segments like commercial waste division, Mineralz & water division, and specialities division was in line with expectations. Following the good performance, the company now expects its full-year underlying EBIT to be at least €120m (FY21: €73 million).

Renewi Plc’s last close was at GBX 697 on 21 March 2022, with a market cap of £558 million.

Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.