Questor share tip: Deal prepares way for E2V to make waves in mining Obviously, this is very early stage and even if the trials are successful, monetising the product is a long way away. However, the fact that a company such as Rio is interested is a very promising sign. Miners are heavily investing in technologies to improve yields and make up for skills shortages. Indeed, Rio said yesterday that it was accelerating a move towards automation of trains in its Pilbara iron ore operations after the success of its driverless trucks trial. Copper is also an interesting metal to target as grades from major mines all over the world are falling. Increasing yields can increase the mine life of these operations. The ProWave technology has been successfully used in vermiculite operations, a mineral used in fireproofing, insulation and brake linings. Previously, the mineral was extracted in a heating process that required lots of energy. E2V claims that ProWave can processes vermiculite using 90pc less energy and boost yields by up to 20pc. E2V's origins stretch back to the Second World War. The business was originally called the English Electric Valve Company, and helped to develop the first radar systems. It bought itself out of GEC in 2001, listing in 2004. The company has designed high-performance and highly accurate systems for the Hubble Telescope, Typhoon fighters, dental X-ray machines, cameras that enable firefighters to see through smoke, and weapons systems. The company has a semiconductor life cycle management operation, which offers the industry protection against counterfeit parts. The shares are trading on a March 2012 earnings multiple of 11.7 times, falling to 10.6 next year. E2V is also paying a dividend and is yielding a prospective 2.8pc in the current year rising to 3.1pc. A lot of good news is already in the price, but should the trials with Rio lead to a new commercial product the upside could be spectacular. New investors should wait until the froth from the recent announcement has died down - the shares are a speculative buy.