Published On: October 13th, 2023
Carbonxt Group Limited (ASX:CG1) (“Carbonxt” or the “Company”), the leading Cleantech Company directed by Managing Director Mr Warren Murphy, shared trading and operation updates for the period ended on September 30th, 2023. The Company expects the receipt from its customers for the three months ended on September 30th, 2023, amounting to AUD 5.3 million, which is an increase of 124% on the previous quarter and a 5% increase on the same period last year.
The numbers align with the projection made in the last ASX announcement. Carbonxt witnessed sales momentum backed by solid demand for PAC products, majorly from the Company’s client base of power generation companies who increased their inventory quotas during the period.
Carbonxt Group Limited also expects to demonstrate cost savings due to streamlining the operation at its existing Activated Carbon Production (ACP) facility to ramp up the construction and development of its state-of-the-art ACP facility, NewCarbon LLC, in Kentucky. This is intended to be a 50% owned operation with a US-based partner, Kentucky Carbon Processing (KCP).
Table of Contents
At the Kentucky facility, work programs are advancing per the schedule and are monitored by Dr David Mazyck. They are delivering complete focus on NewCarbon, LLC following the appointment of Dr Regina Rodriguez as Chief Executive Officer of the group’s US Subsidiary, Carbonxt Inc.
The delivery of construction equipment has been progressing consistently in recent weeks and is expected to be confirmed as delivered to the site before the end of October 2023. This milestone will enable the payment transfer of USD 500,000 from Carbonxt to NewCarbon, LLC, per the terms of the agreement between KCP and NewCarbon, LLC.
This proposed plant is expected to produce initially 10,000 tons per annum of high-grade activated carbon products. As per the US Environmental Protection Agency’s strategic roadmap to protect public health from Per- and Polyfluorinated Substances (PFAS) from water supplies, activated carbon products will play a key role in water treatment and air purification processes for multiple sectors. The new production plant also enables Carbonxt to expand in a fast-growing market.
Managing Director’s comment
Managing Director Mr Warren Murphy expressed pleasure by saying that the rebound in quarterly sales receipts aligns with the Company’s previous guidance. He shared that construction activity is ramping up at the Kentucky facility.
He said, “The procurement of necessary equipment has been a multi-month process and well-managed by KCP and our on-site team. We look forward to providing detailed updates on the plant’s development during the December quarter.”
Mr Warren Murphy, Managing Director of Carbonxt Group Limited
Mr Warren Murphy is a market veteran with exceptional experience in finance and brings expertise from several industries. He was pivotal in esteemed energy organisations such as Project Finance Group, Alinta Limited, Sydney Gas Limited, etc.
Managing Director Mr Warren Murphy’s expertise has shaped Carbonxt’s continuous growth and expansion of the vision. Under Warren Murphy’s guidance, Carbonxt Group Limited is set to track its intended trajectory of a bright future.
- Carbonxt Limited expects receipts of AUD 5.3 million from the customers, marking a robust 124% increase from the prior quarter, reflecting strong demand for the Company’s products.
- The 5% increase in receipts compared to the prior year’s comparable period shows a sustained and consistent growth trend.
- The progress of the flagship Activated Carbon production facility in Kentucky, USA, is on schedule, suggesting that Carbonxt is effectively executing its expansion plans.
- The Company’s Kentucky plant is poised to produce 10,000 tons of high-grade activated carbon products annually to cater to the increasing demand.
- Kentucky Plant also enables it to enter the liquid phase of the Activated Carbon market. The market is expected to be around USD 300 million today and grow 3x with the introduction of PFAS rules by the end of the year by EPA.
- Carbonxt’s share price stood at AUD 0.063 per share as of October 12th, 2023, with an average 52-week range of AUD 0.046 to AUD 0.120 per share.
- The Company has a market capitalisation of AUD 16.51 million as of October 12th, 2023.
To conclude, this announcement brings positive news for investors because it demonstrates Carbonxt’s strong sales growth, effective financial management, operational efficiency, and a clear path for expansion into a market with increasing demand.
About Carbonxt Group Limited
Carbonxt Group Limited is a US-based cleantech Company that develops and markets specialised Activated Carbon Products primarily focused on capturing contaminants in industrial processes that emit substantial amounts of harmful pollutants. The Company manufactures Powdered Activated Carbon and Activated Carbon Pellets for industrial air purification, wastewater treatment, and other liquid phase markets.
To know more about Carbonxt, CLICK HERE.
The Content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video (Content), is a service of COLITCO LLP and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is not a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Colitco LLP is neither licensed nor qualified to provide investment advice through this platform. Users should inquire about any investments, and Colitco LLP strongly suggests that users seek advice from a financial adviser, stockbroker, or other professional (including taxation and legal advice) as necessary. Colitco, at this moment, disclaims any liabilities to any user for any direct, indirect, implied, punitive, special, incidental, or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Colitco LLP. Some images/music used on this website are copyrighted to their respective owner(s). Colitco LLP does not claim ownership of any pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions, or are believed to be in the public domain. We have used reasonable efforts to accredit the head wherever it was indicated as or found to be necessary.