Carbonxt Group Limited – June 2024 Quarterly Update

Carbonxt Group Ltd (ASX:CG1) (“Carbonxt” or “the Company”) has released its Appendix 4C Report for the June 2024 Quarter and provides the following update on the key areas of activity for the period -- all numbers are in A$.

Highlights

• There were two material contract announcements in the June 2024:

• $4.3m up-front forward sale of Activated Carbon Pellets (ACP) to utility provider Wisconsin Public Service (WPS)
• Four-year contract of approximately $24m with Reworld Waste, LLC to provide Powdered Activated Carbon (PAC), which will generate annual revenues of ~$6m for the duration of the contract

• Receipts from Customers were up 165% on the comparable quarter a year ago and 81% on a quarterly basis due to the WPS transaction. Revenue was a 6.2% increase on the prior comparative quarter and 19% higher year-on-year.

• Annualised sales of Powdered Activated Carbon (PAC) are 16% higher than a year ago which is almost entirely due to a focus on customer mix and associated higher prices across the PAC portfolio.

• Sales of Activated Carbon Pellets (ACP) increased by 36% from a year ago and by 14% on a quarterly basis.

• Construction of the flagship Activated Carbon production facility in Kentucky, USA continues apace with the build program expected to be completed by the end of the quarter and first sales of Granular Activated Carbon (GAC) in the December quarter.

Principal Activities

Carbonxt is a cleantech company that develops and manufactures environmental technologies to maintain compliance with air and water emission requirements and to remove harmful pollutants. The Company’s primary operations are in the US and include a significant R&D focus as well as manufacturing plants for activated carbon pellets and powder activated carbon. Carbonxt continues to expand its pellet product portfolio to address numerous industrial applications.

Managing Director Warren Murphy commented:

“The June quarter was a very successful period for the Company, highlighted by the completion of the WPS forward sale which consolidated Carbonxt’s position amid the broader demand tailwinds for Activated Carbon products in the US market.

“Post quarter-end, the WPS sale was followed by the award of a large PAC contract with Reworld Waste, LLC, a leading provider of sustainable waste solutions in the US waste-to-energy industry. That contract will increase annual revenues for the Group by over 25%, whilst seeing gross margins improve to over 40% at our Black Birch PAC manufacturing facility in Georgia.”

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