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Highlights
- For the September quarter, receipts from customers are expected at A$5.3 million.
- Construction of the company’s activated carbon production facility in Kentucky is advancing as per the plan.
- The company expects final delivery of production equipment to be completed by October end.
Carbonxt Group Limited (ASX: CG1) shares jumped 5% in the morning trade after the US-based cleantech company shared an upbeat trading and operations update.
For the September 2023 quarter, CG1 expects to report $5.3 million in receipts from customers, which is 124% higher than the previous quarter and 5% up on the previous corresponding period. Moreover, the company expects to register cost savings with the streamlining of its operations at the existing activated carbon production facility.
Meanwhile, the company also updated on the construction of its state-of-the-art activated carbon production facility in Kentucky, the US. Over the recent weeks, delivery of construction equipment has been progressing, and all equipment is expected to be confirmed as delivered before the October end.
More
The expectations for receipts from customers are in line with the guidance, whereby CG1 took receipt of revenues that had been deferred by the largest client in the previous quarter.
The company registered increased demand for PAC products from power generation clients that increased their inventory quotas in the northern summer months.
Construction and development work at the Kentucky activated carbon production facility is advancing as per the schedule and is being overseen by Dr. David Mazyck, who has moved roles to have a complete focus on the start-up of the NewCarbon, LLC business in Kentucky. NewCarbon, LLC is a 50%-owned operation with Kentucky Carbon Processing, LLC a US-based partner of CG1.
Post the delivery of equipment to the site, the company is required to make the next payment of US$500,000 to NewCarbon, LLC, as per the contract with NewCarbon, LLC and KCP.
Shares up 5%
CG1 shares traded at AU$0.063 on 12 October 2023, up 5% from the last close.
