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Carbonxt Group Limited makes a USD 500,000 Prepayment to Gain Development Momentum at Its Activated Carbon Plant in Kentucky

Carbonxt Group Limited makes a USD 500,000 Prepayment to Gain Development Momentum at Its Activated Carbon Plant in Kentucky

Carbonxt Group Ltd (ASX: CG1) (Carbonxt, or the Company) has announced a prepayment of USD 500,000  to accelerate the construction of its ultra-modern activated carbon production facility in Kentucky, USA. The funding will be available to the Company’s joint-venture (JV) partner, Kentucky Carbon Processing LLC (KCP). Funds will be utilised to facilitate the purchase of long-lead items. It will ensure the timely procurement for the first phase of the Kentucky Plant’s construction and operations commencement.

The prepayment provision demonstrates the commitment of all parties involved in the Project to expedite the Plant construction. The legal documentation for the joint-venture (JV) framework is progressing well, with final terms expected soon before the commencement of construction. The water treatment and air purification sector highly depends on Activated Carbon (AC). Carbonxt’s new production facility capacity to produce Activated Carbon (AC) pellets and powder will consolidate its position in the market.

The Importance of Joint Venture and Kentucky Plant

In late 2022, Carbonxt Group announced the joint venture with Kentucky Carbon Processing LLC, a US-based company. The joint venture (JV) plans to construct a new activated carbon plant in eastern Kentucky. The new plant will increase Carbonxt’s production capacity from roughly 16,000 tonnes to more than 25,000. Additionally, the cost of producing pellets is anticipated to decrease significantly, supporting Carbonxt’s ability to increase margin growth. The USD 500,000 payment will be Carbonxt’s first financial contribution to the joint venture (JV), which is estimated to be complete soon.

About Carbonxt

Carbonxt is a leader in the cleantech industry that develops and markets activated carbon products. The Company aims to remove contaminants from industrial processes that produce large amounts of harmful pollutants. For use in industrial air purification, wastewater treatment, and other liquid and gas phase markets, Carbonxt produces and manufactures activated carbon pellets and powder.

Carbonxt Group Limited Managing Director, Mr Warren Murphy

  Mr Warren Murphy, Managing Director of Carbonxt groupFigure 1. Mr Warren Murphy, Managing Director of Carbonxt

Carbonxt Group Ltd Managing Director Mr Warren Murphy is an experienced executive who led acquisitions and financial deals within the energy, resources, and infrastructure industries. Warren was Co-Head of the Australian Infrastructure & Project Finance Group and Head of Energy at Babcock & Brown based in the Sydney office.

Mr Warren Murphy, expressed his satisfaction with the progress of the project. He commented, “We are pleased to announce the allocation of the prepayment with our JV partner, KCP, as construction on Carbonxt’s flagship, cutting-edge activated carbon production facility continues. The funding will facilitate the timely procurement of specific items requiring a longer lead time. With negotiations now moving into the advanced stages before the commencement of construction, we look forward to providing more updates on the Kentucky plant in the coming weeks and months.” 

Carbonxt Financial Overview

Investor’s Outlook

Carbonxt’s investor outlook in 2023 seems optimistic, with the Company’s growth trajectory promising in the upcoming financial years.

  • Carbonxt’s stock price stood at AUD 0.062 per share as of March 28th, 2023, with a 52-week range of AUD 0.046 to AUD 0.281
  • As of March 28th, 2023, the Company has 275.29 million shares on the issue with a market capitalisation of AUD 17.07 million
  • Carbonxt is expected to increase its production by 57% in the current financial year 2023

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