Carbonxt Group

Carbonxt Group Limited – September 2023 Quarterly Update

Carbonxt Group Ltd (ASX:CG1) (‘‘Carbonxt” or “the Company”) has released its Appendix 4C Report for the September 2023 Quarter and provides the following update on the key areas of activity for the period. All numbers are in A$ unless otherwise stated.


Highlights

  • Revenue of $5.3m for the September quarter and customer receipts of A$4.6m – the latter being an increase of 93% compared to prior quarter - primarily reflecting a timing difference in orders from the group’s largest pellet customer.
  • Sales of Powdered Activated Carbon (PAC) increased 31% from a year ago which reflected higher demand from utility plants. Compared to prior quarter, PAC sales increased by 36% as the summer period continues and demand remained steady.
  • Several existing relationships extended their PAC contracts with higher pricing across the power generation, water filtration and industrial applications. One PAC contract has been increased by over $1.5m per annum.
  • Sales of Activated Carbon Pellets (ACP) increased by 26% from a year ago. The Finished Goods inventory decreased by $0.9m as ACP inventory for our largest customer was sold. Revenue of $1.2m was booked in the last two weeks of the quarter and cash received in mid-October 2023.
  • Construction of the flagship Activated Carbon production facility in Kentucky, USA continues to progress on schedule, with operations expected to commence in 1H of calendar 2024.

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.

Overview

  • Customer receipts were $4.6m, an increase of 93% compared with the prior quarter receipts. As noted above, the increase in customer receipts was primarily driven by timing of orders from our largest customer (refer ASX Announcement 12 October 2023).
  • Activated Carbon Pellet (ACP) primary sales during this period were made to the group’s two largest customers. Sales were made primarily from inventory that was produced in previous quarters, as an initiative to reduce per-unit production cost and strengthen the balance sheet.
  • Powdered Activated Carbon (PAC) revenue was higher on a q/q basis, due to higher demand during the northern summer period where both cement production facilities and power plants operate more consistently and therefore need more product.

Revenue and Operating Cash Flow

  • The Company reported positive Operating Cash Flow for the quarter of ~$600,000. The inflow of cash reflects primarily the sale of built-up inventory for the main ACP customer.
  • High demand for PAC has continued in this quarter reflecting the warmer weather and higher demand from coal fired power plants.

Payments to Related Parties

  • Included within staff costs (item 1.2 (e) of Cash Flow from Operating Activities in the Appendix 4C) are payments to the Directors. These rates of payment to directors are unchanged from the remuneration as set out in the last Annual Report.

Investments

  • The new Activated Carbon facility in Kentucky continues to progress well, with the delivery of construction equipment now confirmed as delivered to site thereby triggering a milestone payment of US$500,000 from Carbonxt to NewCarbon, LLC in accordance with the terms of the agreement with KCP and NewCarbon, LLC. A further update on construction progress will be provided to the market in the coming week.

New Board Appointments and new CEO, Carbonxt Inc.

  • This quarter Carbonxt appointed two new board members, Imtiaz Kathawalla and Nicholas Andrews, who bring on a wealth of technical and commercial knowledge to assist the Company in this exciting growth phase.
  • The Company also appointed Dr. Regina Rodriguez as Chief Executive Officer of of the group’s US subsidiary, Carbonxt Inc, to help with the improvements and management of the operations and cash flows for our business while the Kentucky plant comes online. Thus allowing Dr. David Mazyck to focus exclusively on the commencement of the Company’s largest ever investment, the new AC plant in Kentucky.

Managing Director Warren Murphy commented:

“We are pleased to present our results for the September quarter, which were highlighted by strong momentum across our existing operations as well as the construction of our flagship activated carbon production facility in Kentucky. As previously stated to the market, group trading results reflected the timing of cash payments from our largest pellet customer, which underpinned a strong quarter of revenue and cash receipts which in turn flowed through to positive net operating cash flows. Progress at our Kentucky facility is proceeding on schedule. With the next tranche payment now scheduled following the delivery of key equipment, we look forward to providing more updates in the December quarter around on- site construction works. The Kentucky facility continues to represent a major addressable market opportunity for Carbonxt, and we are working with our investment partners, KCP, to advance the project towards production as quickly as possible.”


Click here for the full ASX Release

This article includes content from Carbonxt Group, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

CG1:AU
Carbonxt Group (ASX:CG1)

Carbonxt Group (ASX:CG1) Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Carbonxt Group

Carbonxt Group (ASX:CG1)


Keep reading...Show less
St. Anthony Gold Enters Exclusivity Agreement

St. Anthony Gold Enters Exclusivity Agreement

St. Anthony Gold Corp. ("St. Anthony" or the "Company") (CSE:STAG)(Frankfurt: M1N)(OTC PINK:MTEHF) is pleased to announce that it has entered into a right of exclusivity agreement (the "ROE") to acquire the Mallay Mine in Peru

The Mallay Mine is located five hours drive north of Lima and three kilometers from the community of Mallay. The 10,562 hectare Tres Cerros Au-Ag Project, mine and processing plant are currently in care and maintenance mode. The existing 600 tpd plant was constructed in 2010.

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less
  Diatreme Resources Limited

Mineral Resource Upgrade Paves Way for Northern Silica Project PFS

Emerging silica sands developer, Diatreme Resources Limited (ASX:DRX) announced today a significant upgrade to the estimated Si2 Mineral Resource at the Company’s Northern Silica Project (NSP) in Far North Queensland, highlighting the critical mineral project’s potential amid an accelerating solar energy boom.

Keep reading...Show less
Conquest Resources Enters into Agreement with VerAI Discoveries for AI Targeting on Belfast TeckMag Project

Conquest Resources Enters into Agreement with VerAI Discoveries for AI Targeting on Belfast TeckMag Project

Conquest Resources Limited (TSXV: CQR) ("Conquest" or the "Company") has entered into a Royalty Purchase and Sale Agreement with VDI Resources LLC (VDI), a subsidiary of VerAI Discoveries Inc. (VerAI), an artificial intelligence (AI) powered mineral discovery generator, pursuant to which the Company agrees to grant to VDI a 1.5% net smelter return royalty on certain target areas with recommended drilling locations generated by VerAI utilizing its proprietary AI technology. The Company agrees to grant VDI an additional 1.5% NSR in return for funding a drill program for testing of the targets identified by VerAI on the Belfast TeckMag Project, a 350 sq. km. land package located northeast of Sudbury, Ontario.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
SOURCE ROCK ROYALTIES ANNOUNCES INCREASED MONTHLY DIVIDEND

SOURCE ROCK ROYALTIES ANNOUNCES INCREASED MONTHLY DIVIDEND

/Not for distribution to U.S. news wire services or dissemination in the U.S./

Source Rock Royalties Ltd. ("Source Rock") (TSXV: SRR), a pure-play oil and gas royalty company with an established portfolio of oil royalties, announces that its board of directors has declared a monthly dividend of $0.0065 per common share, payable in cash on May 15, 2024 to shareholders of record on April 30, 2024 . This represents an increase of 8% to the monthly dividend. Source Rock has now increased its monthly dividend by 30% since March 2023 .

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less
  Rimfire Pacific Mining Limited

Compelling Cobalt Copper and REE Targets Identified at Broken Hill

Rimfire Pacific Mining (ASX: RIM, “Rimfire” or “the Company”) is pleased to advise that multiple cobalt, copper, and Rare Earth Element [REE] targets have been identified at its recently expanded 100% - owned Broken Hill Project which is located 17-30 kilometres west of Broken Hill, NSW (Figures 1 and 2).

Keep reading...Show less
Reach Resources

Rights Issue and Shortfall

Reach Resources Limited (ASX: RR1 & RR1O) (“Reach” or “the Company”) is pleased to announce it has received $822,595 from the recently completed non-renounceable rights issue.

Keep reading...Show less
Various commodities atop a stock chart.

McKinsey: Commodities Trading Generated US$104 Billion in 2023

A recent report from McKinsey highlights trends seen in commodities trading over the past year.

The document shows that despite global uncertainty, commodities trading generated over US$100 billion in earnings before interest and taxes in 2023, translating into more than US$150 billion in gross margin.

McKinsey mentions challenges related to COVID-19 and geopolitical conflicts, such as increased price volatility and supply chain disruptions, but notes that commodities trading value pools have show resilience.

Keep reading...Show less
Carbonxt Group (ASX:CG1)

Carbonxt Group (ASX:CG1) Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News

×