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Highlights
- Construction of the Kentucky’s Activated Carbon production facility is advancing well.
- With this development, the focus is moving towards commissioning activities and near-term sales.
- Increased prices of CG1 products led to 28% YoY rise in sales revenue from Powered Activated Carbon (PAC).
- During the Dec quarter, the company completed placement of AU$0.6 million.
ASX-listed cleantech company, Carbonxt Group Limited (ASX: CG1) manufactures and develops environmental technologies to ensure compliance with water and air emission requirements and to get rid of harmful pollutants. The company has its prime operations in the United States.
Through its December 2023 quarterly report, the company has shared update on the key areas of activity for the three months.
A look at significant developments
The company advanced work at its Activated Carbon production facility in Kentucky, USA during the quarter. The delivery of all main construction equipment is done and now the focus has turned towards finalisation of commissioning activities and business commencement tasks comprising key staff hires and sales.
The company informed that the initial discussions with industrial pellet customers have advanced considerably, and prices and volumes have been as per CG1’s expectations.
Financial performance during the quarter
For Powdered Activated Carbon (PAC), sales revenue grew by 28% YoY. This reflects the increased prices of CG1’s products and slightly different mix of customers from the previous year.
The company has extended multiple PAC contracts with existing relationships at higher prices across the power generation, industrial applications, and water filtration. One PAC contract has increased by more than AU$1.5 million per annum.
In December 2023, a placement of AU$0.6 million was completed, under which 10 million shares were issued at AU$0.06 apiece.
A 1:9 rights issue accompanied the placement. Through the rights issue, CG1 intended to raise AU$1.84 million. The issue was oversubscribed and settled after the end of quarter in January 2024.
Commissioning of the Kentucky plant is going on to evaluate the performance of plant and considerable production ramp up is expected to happen in the upcoming quarter.
Image source: Company update
CG1 shares traded at AU$0.100 apiece at the time of wrting on 06 February 2024.