- Carbonxt scored high in the March 2022 quarter with significant growth across divisions.
- The Company made progress in operating at full capacity at both facilities.
- The quarter saw strong demand for both pellets and PAC.
- Carbonxt’s HydRestor technology was selected as a treatment option for Innovative Technology Grant by the Florida state department.
Carbonxt Group Limited (ASX:CG1) continues to strengthen its reputation in the industry as an innovative provider of activated carbon solutions with novel materials. The Company’s latest release on the ASX substantiates its significant growth.
The ASX-listed fast-growing cleantech company closed the last quarter ended 31 March 2022 with customer receipts of AU$3.8 million. As a further AU$1.0 million of receipts were subject to a logistics delay, revenue will be recognised in the next quarter.
The activated carbon pellet (ACP) business saw an 86% year-on-year increase in revenue while powdered activated carbon (PAC) revenue grew by 28% quarter-on-quarter.
The period saw excellent operations and delivery at both its facilities – Arden Hills pellet facility and Black Birch PAC facility.
Besides, the Company boosted its financial position with AU$4.5 million capital raised through a share placement during the reported period.
Carbonxt is forging ahead with new goals in the development and production of environmental technologies to help businesses maintain compliance with air and water emission requirements. The Company is committed to innovate and expand its range of custom activated carbon solutions that can capture pollutants generated during industrial processes.
Noteworthy developments of March 2022 quarter
Image source: Company website
The March 2022 quarter witnessed a sharp spike in the demand for both pellets and PAC solutions. This can be attributed mainly to the fast-paced economic activity in the United States, rise in prices of natural gas, longer lead times as well as increased prices of imported carbon products.
The operations at the Arden Hills pellet facility were at full swing as the demand from pellet customers amplified during the quarter. Similar was the situation at the Black Birch PAC facility, as it operated at maximum capacity to fulfil new orders for bagged and bulk products.
To further scale up the operating capacity of the Black Birch facility in the new financial year, significant investments have been initiated. Also, development of the new manufacturing unit, Kentucky Pellet Facility has entered the final design phase.
CG1’s HydRestor technology got selected as the treatment option for the Innovative Technology Grant by the Florida Department of Environmental Protection. The authority will provide a funding of AU$400k for the pilot testing. Using the technology, more than 8 million gallons of water will be treated over a period of four months at the project site based at Lakewood Ranch, Florida.
A lens through CG1’s R&D prospects
The ASX-listed company is driven by its focus on research & development and establishment of new manufacturing plants for its wide portfolio of products.
Carbonxt is looking forward to expanding its product portfolio with a new pellet product as preliminary discussions are underway with a potential business partner. The novel product will be engineered by employing their exclusive raw materials.
CG1 shares were trading at AU$0.225 midday on 13 May 2022, with market capitalisation of AU$43.53 million.