Carbonxt Group (ASX: CG1) wraps up a strong quarter of revenue and cash receipts

Highlights

• Carbonxt Group registered customer receipts worth AU$4.6 million in September quarter, marking an increase of 93% QoQ.
• For the period, the company secured a revenue of AU$5.3 million.
• The period saw double-digit jump in the sales of activated carbon pellets and powdered activated carbon products.
• The Kentucky-based activated carbon production facility is expected to become operational in 1H24.

Cleantech company Carbonxt Group Limited (ASX: CG1) is steering forward in its business goal of developing environmental technologies that can maintain compliance with air and water emission needs and eliminate harmful pollutants.

The company has closed another quarter of operational and financial achievements. The three-month period ended 30 September 2023. saw double-digit jump in the sales of activated carbon pellets and powdered activated carbon products.

In this article, we have jotted down significant developments undertaken in the key activity areas during the period.

CG1 strengthened team with new appointments

Carbonxt welcomed two new members to the board - Imtiaz Kathawalla and Nicholas Andrews, during the quarter. Also, Dr. Regina Rodriguez has been brought onboard to serve as the new Chief Executive Officer (CEO) of the group’s US subsidiary, Carbonxt Inc.

Kentucky’s activated carbon plant

Carbonxt is advancing the new activated carbon facility in Kentucky well. The required equipment for construction will be delivered to the site with a successful payment of US$500,000 to NewCarbon, LLC following the agreed terms of an agreement between the two parties.

The company is expecting the operations to begin in the first half of the calendar 2024.

Sales jump in September quarter

Carbonxt registered customer receipts worth AU$4.6 million, marking an increase of 93% over the previous quarter. The growth in customer receipts was due to timing of orders from one of its largest clients.

For the September quarter, the company secured a revenue of AU$5.3 million.

CG1 received higher revenue from the sales of powdered activated carbon (PAC) on a quarter-to-quarter basis, because of surge in demand from coal-fired power plants during the northern summer period. There was around 31% and 36% hike in the PAC sales versus previous year and former quarter, respectively. For the quarter, ACP sales soared by 26% as compared to the former year.

CG1 won extended PAC contracts from existing clients at higher pricing across the water filtration, power production, and industrial applications. One of the PAC contracts of the company has been expanded by more than AU$1.5 million/year.

Overall, CG1 had positive operating cash glow of AU$600,000 in the September quarter.

Remarks by CG1 Managing Director

CG1 shares traded at AU$0.07 on 22 November 2023.