CXL - Calix Limited

[Dona Ferentes]

trading resumed after the placement ... (which was completed in one day).

The Placement received strong support from local and international investors, including existing eligible shareholders and also new institutions.

After the usual bit of a sell-off, that didn't touch $4.55, the SP has risen above the closing price on Tuesday ($5.12), which augers well.

 

[Dona Ferentes]

The Calix SPP is OPEN ; it aims to raise up to $20 million and is not underwritten. Calix reserves the right to increase the size of the SPP or may decide to scale back applications under the SPP at its absolute discretion. The issue price for New Shares issued under the SPP will be the lower of $4.55 (Placement Price) and a VWAP discount formula.

and with Calix trading a buck above , at $5.50, it may be sensible to jump in earlier.

 

[Dona Ferentes]

Calix has been informed that the Australian Government is not proceeding with the Carbon Capture, Use and Storage (CCUS) Hubs and Technologies Program. Following the Australian Government’s Budget announced on 25 October 2022, AusIndustry advised Calix that the $11m in grant funding, announced by the former Government in May 2022, has now been cancelled.

• The grant funding was in support of Calix’s project with Adbri (ASX: ABC) to develop low emissions lime.
• Similarly, Boral (ASX: BLD) has advised Calix that the $30m in grant funding, announced by the former Government in May 2022 has also been cancelled. The grant funding was in support of a CCUS project utilising Calix’s cement and lime decarbonisation technology.

.... probabaly not enough gender-awareness training in the submissions

 

[peter2]

Another example of sovereign risk or political flip-flops.
I sold CXL for a small loss after news of the SPP would likely cause the price to fall to the SPP of 4.55. It did on open but then rallied to 6.00 over the next few days. Arrgh. Now this news sees the price plunge below the SPP. Seems the price of net-Zero requirements is scaring a few. Phew. Too volatile for me. Winners in this crazy race to net-Zero are going to be impossible to pick. The losers are already known and it's us, the paying customers.

 

[Dona Ferentes]

what a wrench. Do I put any more money in (glad I'm free-carried) ?

Another example of sovereign risk or political flip-flops.
..... Winners in this crazy race to net-Zero are going to be impossible to pick. The losers are already known and it's us, the paying customers.

too bloody right, on both points.

 

[peter2]

Good decision to "free carry" this high risk, high reward company. I liked the outlook for CXL until now. Future outlook becomes cloudy (with meatballs). Does their carbon capture tech have the potential to earn it's keep without gov't handouts?

If gov't doesn't partially finance carbon capture tech many companies won't be able to offset their carbon emissions. Net-Zero will be impossible to achieve without fudging the numbers. ABS has plenty of experience with this.

 

[sptrawler]

Good decision to "free carry" this high risk, high reward company. I liked the outlook for CXL until now. Future outlook becomes cloudy (with meatballs). Does their carbon capture tech have the potential to earn it's keep without gov't handouts?

If gov't doesn't partially finance carbon capture tech many companies won't be able to offset their carbon emissions. Net-Zero will be impossible to achieve without fudging the numbers. ABS has plenty of experience with this.

Its going to be interesting to see which horses the Govt/Greens back, in their chase to fulfill the 43% reduction promise. Hopefully those that become collateral damage, arent those that they require in the end.

 

[Garpal Gumnut]

I must admit I'm more interested in the bride rather than the movements of the nightie.

I was going to jump in to this late in the piece after other ASF members had gotten in early, and I'm glad I didn't.

gg

 

[martaart077]

I must admit I'm more interested in the bride rather than the movements of the nightie.

I was going to jump in to this late in the piece after other ASF members had gotten in early, and I'm glad I didn't.

gg

U might not like the bride as much without her makeup, except of course the lights might be out by then

 

[So_Cynical]

Grants come and go, low emissions lime will have to be developed and implemented to get to zero, cement is a big deal and the govt will have to pay at some point, long term Calix is the pre eminent zero play.

 

[Dona Ferentes]

...long term Calix is the pre eminent zero play.

we hope so. Down since the loss of govt money news, and closing on $4 (which is where it was in Sept 2021)

AustralianSuper, who you'd assume would be a long-term holder though has been buying and selling on the way up and down, has increased from 8.18% to 10.72% according to most recent notice, mainly through CONVER.

 

[Dona Ferentes]

Shares issued under the SPP will be the lower of $4.55 (Placement Price) and a VWAP discount formula.

Strong finish for CXL over the last 2 days and the SPP closes tonight, and why not a competition, see below

and with Calix trading a buck above , at $5.50, it may be sensible to jump in

But no.... Proved not to be the case. Has been as low as $4.02 following the news of grant money.

With today's close at $4.69, and big swings when SPP was open, will
1.) the issue be oversubscribed?
2.) and if so, will there be scaleback?
3.) What will the issue price of new shares be?

Trading over the last 5 days:

My guesses,
1.) Yes, oversubscribed (330 @ $30k each will get there)
2.) No scaleback, they'll take up extra $$s to compensate for loss of grants
3.) There's a 2.5% discount on VWAP over last 5 days, so I'll go $4.30

 

[peter2]

I agree that CXL is one of the main CC players in the ASX. If they can capture carbon in cement it would be a huge advantage for CXL and appease the vocal few. I have purchased a small speculative parcel again and will wait to see what happens after the SPP has ended.

 

[Dona Ferentes]

wrap it in the flag and ABC will give some airtime

Green steel plan, lithium processing push could keep Australian materials onshore, expert says

A consultant says projects planned by an Australian company could lead to a shift in the country's export mentality.

www.abc.net.au

 

[Dona Ferentes]

Calix has accepted a total of A$21.6m in subscriptions for its SPP. The SPP aimed to raise A$20.0m. The increased size of the SPP enables all existing shareholders to receive their full allocation under the SPP. New, fully paid, ordinary shares in Calix offered under the SPP will be issued at A$4.24 per SPP Share

1.) Will the issue be oversubscribed?
2.) and if so, will there be scaleback?
3.) What will the issue price of new shares be?

My guesses,
1.) Yes, oversubscribed (330 @ $30k each will get there)
2.) No scaleback, they'll take up extra $$s to compensate for loss of grants
3.) There's a 2.5% discount on VWAP over last 5 days, so I'll go $4.30

Even better. Oversubscribed, not scaled back and even more bang for my SPP buck at $4.24

( remind me never to apply for a G.O. position at Club Med )

 

[Dona Ferentes]

CXL temporarily paused pending a further announcement.

Just raised capital at $4.55 / 4.24 .... (now $4.98)

 

[Dona Ferentes]

An update, following on from a press release from global building materials company, CEMEX, S.A.B. de C.V. titled,
“CEMEX strengthens commitment to decarbonize the construction value chain”
published on its website on 21 November 2022. The CEMEX press release announced new Carbon Capture, Utilisation, and Storage (CCUS) projects, including:

“Three Front End Engineering (FEED) studies to scale CCUS technologies at CEMEX plants in Germany, Poland, and the US. The studies fall under the scope of a new global license agreement with Leilac, a subsidiary of Australian technology company Calix. The agreement enables CEMEX to leverage Leilac’s highly efficient direct separation technology, to capture CO2 at a low cost in its operations.”

Leilac, Calix’s 93% owned subsidiary focused on the decarbonisation of cement and lime, and CEMEX have a longstanding partnership. CEMEX is a founding and valued member of a consortium of companies and institutions partnering to develop and apply the Leilac technology through the Leilac1 and Leilac-2 projects.

Calix and Leilac are working closely with CEMEX to progress the three projects mentioned in the press release as well as a global licence agreement, currently under negotiation, covering CEMEX’s global operations. Calix and Leilac will continue to work with CEMEX towards the shared goal of decarbonised cement and lime.

The official press release from CEMEX can be found at: https://www.cemex.com/-/cemexstrengthens-commitment-to-decarbonize-the-construction-value-chain –

 

[Dona Ferentes]

Grants come and go, low emissions lime will have to be developed and implemented to get to zero, cement is a big deal and the govt will have to pay at some point, long term Calix is the pre eminent zero play.

And another player in the CC space. I wonder where the money will come from ?

Australia’s largest cement producer explores carbon capture​

04 Dec, 2022

Processing engineering firm KC8 Capture Technologies will construct and install a demonstration plant to capture carbon dioxide at one of Australia’s largest cement producers, Cement Australia’s facility in Gladstone.
The deal marks Cement Australia’s move into carbon capture and storage amid growing pressure on heavy industry to reduce emissions, including in hard-to-abate sectors.
KC8 is set to build a demonstration plant for Cement Australia at its Gladstone location
KC8 said its solvent-based carbon capture processes were highly efficient and cost-effective. The system had the potential to capture up to 95 per cent of carbon dioxide emissions from heavy industry sources, such as cement plants, the firm said.
Labelled the PACER project, meaning Potassium Carbonate Absorption for Clinker Emissions Reduction, Cement Australia will support KC8 in scaling up the company’s technology with the aim to make carbon capture affordable and sustainable and reduce climate impacts. The plant is expected to be built by the second quarter of 2023, with testing and full operations to follow.
“The PACER project objectives directly support Cement Australia’s decarbonisation road map and pathway to net zero carbon emissions,” Cement Australia chief executive Rob Davies said.

“We are excited to see the project get underway – it is a key part of a number of complimentary initiatives Cement Australia is progressing as part of its decarbonisation priorities. The capture and use of CO2 into value-added products is a strategic pillar of Cement Australia’s decarbonisation road map.”
Cement Australia’s move into carbon capture and storage comes as heavy emitters come under greater pressure to reduce their climate impact and contribute to emissions reduction efforts.

Cementing a partnership​

The safeguard mechanism, established under the former Coalition government in 2016, requires industrial facilities that generate more than 100,000 tonnes of greenhouse gases a year, such as coal mine sites, gas plants, aluminium smelters and cement producers.
Baseline emission limits are intended to be progressively lowered, but critics say limits have been so high that the policy is ineffective.

KC8 executive director Greg Ross said the company’s technology offered the best solution.
“We believe our carbon capture technology will provide an affordable pathway to reduce greenhouse gas emissions from the use of fossil fuels and heavy industries around the world. And we are very excited to partner with Cement Australia, as having access to their cement facility will become ground zero for having a larger impact both here in Australia and overseas.”
He declined to comment on the costs involved.
Carbon capture and storage enjoyed strong support from the Morrison government, but Labor in its first budget stripped $250 million from such projects. KC8 was one of the companies to have funding cancelled.
Carbon capture and storage proponents have accused the Albanese government of turning its back on the sector despite its potential to help Australia reach net zero by 2050.

 

[sptrawler]

And another player in the CC space. I wonder where the money will come from ?

The 43% reduction fund. While it lasts.

I do hold CXL

 

[So_Cynical]

The cement industry globally has a big issue with zero or even any serious reductions, i was at the Adelaide Brighton AGM a few months ago where management boldly stated that basically they were 100% dependant on technology that hasn't been developed yet, thats a hell of a thing to say, a billion dollar business reliant on **** that doesn't exist.

Calix is the ONLY business that can offer something real to the industry as far as genuine reductions go.