Headquartered in Australia, Carbonxt Group Limited (ASX: CG1) deals in the development and sale of specialised and advanced Activated Carbon (AC) products which are non-brominated. Carbonxt’s products provide a key competitive advantage by eliminating the corrosion and damage caused to plant equipment when using brominated products. Such products include Powdered Activated Carbon and Activated Carbon pellets used for the removal of pollutants and toxins in industrial processes. They are used in waste-water treatment, industrial air purification and other liquid and gas phase markets.
Understanding the needs and compliance challenges faced by each of the industries associated with Carbonxt, the company identifies suitable solution considering the complex needs of its customers.
Carbonxt works with different industries, including Potable Water, Waste to Energy: Industrial Boilers and Incinerators, Coal-Fired Power Plants, Cement Plants and VOC & Hydrogen Sulfide (H2S) Removal. Let us take a look at how the company is associated with these industries:
- Coal-Fired Power Plants - Carbonxt’s product line features impregnated powdered activated carbons (PACs) produced from coal or domestic sustainable materials designed for removal of mercury in the gas and aqueous phases.
- Cement Plants - The company designs custom activated carbon solutions at a reasonable price. Its CEM-PAC line is particularly designed for the compliance efforts of CISWI and NESHAP cement plants. The company assigns a dedicated Applications Engineer to each of its cement customer
- Waste to Energy: Industrial Boilers and Incinerators - For such industries, Carbonxt assesses their present system and prepares a product that integrates into their flue gas conditions.
- Potable Water - The company delivers high-quality PACs made especially for the removal of taste and odour compounds and other common drinking water contaminants.
- VOC & Hydrogen Sulfide (H2S) Removal - Carbonxt makes activated carbon pellets in different sizes and properties in order to eliminate contaminated ingredients from various gas streams.
March 2019 Quarter Updates
In a recently released March 2019 Quarterly Update, the company mentioned that it has arranged a new finance facility with PURE Asset Management Pty Ltd and Skye Alba Pty Ltd to provide additional funding for the company and to refinance the existing Convertible Note facility.
Update on the Revenue and Operating Performance of CG1 in March 2019 Quarter:
- Revenue improved 191 per cent in 3Q19 to $5.1 million relative to the same quarter last year. Further, for the nine months to March 2019 the company reported revenue of $13.1 million which is 200% above the comparable period in 2018.
- The loss from operations reduced to $0.5 million from $2.4 million in the same quarter last year, validating a substantial improvement in operating performance during the quarter.
- The operational performance improved at both the Black Birch (powdered) and Arden Hills (pellets) facilities.
- The company is on track to deliver Activated Carbon Pellets as declared.
- The March quarter saw the Company continue to focus on operational improvements to lower its cost of production and achieve the targeted move into profitability.
The company expects its second significant sales contract during the current quarter in the wake of strong demand for the higher value pellets. Carbonxt anticipates to remain cash flow positive by June 2019. The march 2019 quarter cash and cash equivalents stood at $1.1 million and the estimated cash outflow for the next quarter is reported at $4.24 million.
Carbonxt’s stock has delivered a return of 9.09 per cent in the last one month. The stock last traded at AUD 0.300 on 24th May 2019.
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