First published in AIM Investor: the Water sector on AIM: Cleantech magazine, Volume 6 Issue 6 - December 2012
Watermark Global has spun off its acid mine drainage treatment business into a separate company following long delays in decision making for a potential project in South Africa. Earlier this year, the business was sold for £1.81 million in cash and shares valued at £2.69 million. Watermark retains a 40% interest in the buyer, Mine Restoration Investments Ltd (MRI), a company quoted on the AltX (equivalent of AIM) in Johannesburg.
Over the past century mining has created large underground voids which have become filled with acid mine drainage, a byproduct of mining, where the water needs to be reated to avoid damage to the environment.Although the South African Government is forcing mining companies to take responsibility for this situation, it has delayed a final decision on the project for the short term neutralisation of acid mine drainage in the three Witwatersrand Basins. This has made it difficult for Watermark, since the company does not have any cash generating operations, and has prompted the disposal of the business. Watermark is thus able to find an alternative business on which to focus, but also retains an interest in the potential upside for MR.
Water Sector Stock Performances 2012
| Company | Mkt Cap (£m) | Share Price end Dec 2011 | Share Price (12 Dec 2012) | % change 2012 |
| Amiad | 66.78 | 225 | 397.5 | 76.7 |
| Modern Water | 33.2 | 49 | 56.5 | 15.3 |
| MyCelx Technologies | 32.95 | 240 | 255 | 6.3 |
| Hydro International | 17.6 | 129 | 125 | -3.1 |
| Water Intelligence | 3.03 | 34 | 31.5 | -7.4 |
| Waterlogic | 122.3 | 173 | 157.5 | -9.0 |
| Wasabi Energy Ltd | 36.85 | 1.6 | 1.225 | -23.4 |
| HaloSource Inc | 57.8 | 56 | 37 | -33.9 |
| Watermark Global | 1531.37 | 0.23 | 0.145 | -37.0 |
| Origo Partners | 47.75 | 35 | 13.375 | -61.8 |
| Nature Group | 17.4 | 61.25 | 21 | -65.7 |
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