Carbonxt Group Ltd (ASX:CG1) (“Carbonxt” or “the Company”) has released its Appendix 4C Report for the June 2023 Quarter and provides the following update on the key areas of activity for the period. All numbers are in Australian dollars uless stated otherwise).
Highlights
-- Joint Venture (‘JV’) legal documentation executed with US partner Kentucky Carbon Processing, LLC (KCP) for Carbonxt’s state-of-the-art activated carbon plant in Kentucky, USA.
-- This major development will see CG1 move to 50% of a 10,000 tons per annum plant producing high quality activated carbon products, with further expansion anticipated for minimal further capex.
-- The development of the KCP sees the transition of the existing Inez Power facility to an activated carbon plant which has lower development risk, lower cost, higher capacity and a better scheduling of future cashflows for Carbonxt.
-- The JV facilitates Carbonxt’s entry into the water treatment sector for Activated Carbon products, increasing the Company’s estimated addressable market by ~$US900m.
-- Quarterly customer receipts were A$2.4m, down 35% on the prior quarter and 18% on PCP, due almost entirely to sales being deferred to the current quarter. The bulk of the difference will be recouped in the September quarter from our largest Pellet Customer.
-- Product manufacturing and operating costs decreased by 24% compared to the last quarter, primarily due to planned efficienty actions implemented at both the Arden Hills and Black Blirch facilities.
-- The value of unsold inventory has increased from ~A$0.9m to A$1.9m (at cost) as ACP was manufactured and stored for our largest customer in anticipation of meeting its full year forecast.
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