Media Releases › Carbonxt Group

OPERATIONS OVERVIEW

• Half year revenue of $8.9 million, down 10% on HY22, primarily due to maintenance for the installation of new equipment at the Arden Hills and Black Birch manufacturing facilities in December 2022.
• Joint Venture terms finalised for the new Kentucky manufacturing facility, with legal framework now targeted for near-term completion and the rapid scale up of construction development in CY2023.
• Pellet sales accounted for 69% of revenue and 47% of sales volume. We continue to see strong demand for industrial pellets but will not restart this business line until the Kentucky facility is in production.
• Powdered activated carbon (PAC) accounted for 31% of revenue and 53% of sales volume – PAC revenue increased by 6% from HY22.
• HY23 gross margin of 28%, down from 36% in HY22 principally due to operational down time mentioned above and resultant lower pellet sales.
• Largest customer renewed supply contract with Carbonxt for 8-year term to 2030, with a 20% increase in the contracted price effective from 1 January 2023.
• Continued advancement of research program to advance Phase 2 development of technology which addresses the mitigation of Florida Red Tide algae blooms – part of broader long-term opportunity in the US market for water treatment processes.
• Underlying EBITDA for HY23 was a loss of $930K, compared to HY22 EBITDA gain of $192K.