CXL - Calix Limited

[Dona Ferentes]

sellers have barely missed a beat over the last 7 weeks. An absence of news doesn't help matters.

and when the news comes, it gets worse. The 2 most promising activities, relating to lithium and cement, have both become sectors to avoid. R&D dollars drying up, in all likelihood. I wonder how secure the new employees, taken on a year or so ago, feel?

Now CXL is bouncing along the bottom ... a few buyers are lining up above the lows, but another bout of selling is always possible.

 

[Dona Ferentes]

and when the news comes, it gets worse?

Now CXL is bouncing along the bottom ... a few buyers are lining up above the lows, but another bout of selling is always possible.

View attachment 170441

must have seen off the shorters ... 3 days up, & closed on its high (with a large trade just b4) at a rehabilitated 2.12

 

[Dona Ferentes]

the 2 most promising activities, relating to lithium and cement, have both become sectors to avoid. R&D dollars drying up, in all likelihood.

another string in the bow. Money and time ...

Calix Zero Emission Steel Technology engineering study finds high potential economical green iron solution

Calix has completed a Front-End Engineering and Design study for a 30,000 tonne per annum Zero Emissions Steel Technology (ZESTY) Hydrogen Direct Reduced Iron demonstration plant. The study was supported with funding from the Australian Renewable Energy Agency.

Highlights
• The FEED study estimates ZESTY can produce near-zero emissions hot briquetted iron from low grade iron ore for ~AUD$630–800 per tonne of HBI.
• This cost is close to the range of existing, carbon-intensive HBI processing costs, before any benefit of emissions reduction is accounted for.
• ZESTY would reduce the emissions intensity of reducing iron ore to metal iron from 1.89 tonnes of CO2 / tonne of iron to near zero. The reduction of iron ore to metal iron currently accounts for 80-85% of the steel industry’s carbon dioxide emissions.
• An expansive ore testing program demonstrated metallisation degrees of commercial gradefor a range of ores, including low grade Australian hematite ore.
• ZESTY’s low cost of production is driven by efficient hydrogen use, efficient electric heating, and the elimination of additional processing steps.
• Further cost savings are expected as the technology is scaled and refined.
• A Final Investment Decision on a ZESTY HBI Demonstration facility is being progressed and is subject to plant location and commercial agreements currently under negotiation.

 

[Dona Ferentes]

still nowhere near monetising their potential. $2.03
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Financial highlights
• Total revenue and other income increased by 28% to $16.3m (1H23: $12.7m).
• Revenues from sales and services increased by 42% to $12.2m (1H23: $8.6m).
• Gross profit increased by 126% to $5.9m (1H23: $2.6m).
• Growth was driven by continuing revenue and margin contribution from Calix’s Water line of business, and a new revenue stream associated with performing engineering services in support of our customers in Leilac, Calix’s subsidiary focused on cement and lime decarbonisation.
• A gain of $3.4m resulted from Calix’s free-carried equity in its joint venture with Pilbara Minerals (ASX: PLS).
• The combination of revenues and other income as well as the gain of $3.4m described above contributed $19.7m to the comprehensive statement of profit or loss.
• Total operating expenses increased to $19.8m (1H23: $13.1m) as the Group continued to invest in technology development and commercialisation.
• The investment in research and development in 1H24 was partially offset by $3.7m in grants and tax rebates from governments in the various jurisdictions in which Calix operates.

 

[Dona Ferentes]

still nowhere near monetising their potential. $2.03

continues to fall, but back to $2 today

Leilac-2 project will be hosted at Heidelberg Materials’ cement plant in Ennigerloh, Germany.

Highlights
• Leilac-2 will be constructed at Heidelberg Materials’ cement plant in Ennigerloh, Germany.
• The selection of Ennigerloh as the project’s host plant is the result of a thorough site assessment process that followed Heidelberg Materials’ decision to end clinker production in Hanover, Germany.
• The Leilac-2 project has already delivered a robust detailed design ready for construction. This design will now be deployed at Ennigerloh, with minimal delay and additional cost expected.
• Construction of Leilac-2 at Ennigerloh using the already prepared design is anticipated to commence promptly following permitting.
• The Leilac-2 project aims to demonstrate a scalable solution for the efficient capture of unavoidable carbon dioxide emissions released during cement and lime production whilst operating on a range of fuels.
• The successful relocation of Leilac-2 demonstrates the robust and transferrable nature of the Leilac technology and its ability to be rapidly applied at other operational cement plants.

 

[Dona Ferentes]

and a bit of buyer interest, starting late yesterday; will it be sustained?

 

[Dona Ferentes]

and a bit of buyer interest, starting late yesterday; will it be sustained?

nope.... down to $1.24

there's a ZESTY - Zero steel - presentation , and some moves on cement as per :

Highlights
• Leilac and Heidelberg Materials have executed a JV for the construction, operation and future ownership of the Leilac-2 demonstration plant.
• Following construction, the parties will decide about a potential transfer of ownership of the Leilac-2 plant to Heidelberg Materials, subject to technical and commercial performance criteria being met during a three-year testing period.
• Upon transfer of ownership, Heidelberg Materials would repay Leilac’s capital contribution to the project, less depreciation.
• Construction of the Leilac-2 plant is expected to commence in 2025 and commissioning of the plant is expected to occur in mid-2026.
• In parallel with the construction of Leilac-2, Heidelberg Materials and Leilac have committed to explore initial steps required for the development of a full-scale commercial installation.
• Heidelberg Materials and Leilac have previously signed a global licence agreement, covering all plants where the Leilac technology is used, including Leilac-2.

 

[Dona Ferentes]

and now down around $1.02

CXL requests the trading halt in order to confirm with the federal government timing of an expected announcement regarding the award of a material funding grant to the Company.

 

[Dona Ferentes]

trading halt in order to confirm ... an expected announcement regarding the award of a material funding grant to the Company.

and here is nub of the Ann.

Calix ... has been awarded a $15 million grant from the Australian Government’s Carbon Capture Technologies Program. The grant will support the construction of a world-first renewably powered carbon capture and use demonstration plant in South Australia to produce near zero emissions lime and cement and supply captured industrial CO2 emissions to the HyGATE funded Solar Methanol 1 project.
.
opened at $1.18 but quickly sold down to $0.99 - maybe the realisation CXL will have to stump up $$ as well?

 

[Dona Ferentes]

88c ...

Financial highlights
• Calix’s product and services revenues increased by 30% to $24.2m (FY23: $18.6m), with gross margin increasing to 43% (FY23: 33%).
• Growth and diversification in revenue streams contributed to the result:
o Calix’s Magnesia business increased sales and services revenue by 14% to $21.0m (FY23: $18.5m), driven by growth in the U.S. at increased gross margin.
o Leilac’s engineering revenues increased to $3.2m (FY23: $0.1m), driven by advancing its pipeline of opportunities into paid engineering studies in the cement, lime and Direct Air Capture sectors.
o The diversified and growing revenue streams provide cash support as the Group develops and commercialises its platform technology.
• Calix realised a gain of $12.2m from its free-carried equity in its Unincorporated Joint Venture with Pilbara Minerals (ASX: PLS). Continued on-time and on-budget development of its UJV project is positioning its Sustainable Processing business for its first major revenues.
• The Company invested $42.1m (FY23: $31.7m) in capability and capacity building to commercialise Calix’s platform technology.
o Additional research, development and engineering accounted for 67% of the total increase in operational expenditure.
o Calix concluded FY24 with 155 full-time employees (FY23: 129) with new engineers, scientists, and business development and support staff recruited to support technology commercialisation and customer projects.
o The investment in research and development was partially offset by $5.2m (FY23: 10.7m) in grants and tax rebates from governments in the various jurisdictions in which Calix operates.
• The Group held $43.0m in cash and cash equivalents at 30 June 2024 (30 June 2023: $74.5m), down just 10% from 31 December 2023.

 

[frugal.rock]

 

[Dona Ferentes]

View attachment 184038View attachment 184037

as high as $1.145; the run was based on what? 2 items of news.
1. removed from S&P/ASX 300 Index – Effective Prior to the Open on 23 September, 2024
2. Tek lifted holding to 8.39 per cent, announced in 05 Sept.

 

[frugal.rock]

as high as $1.145; the run was based on what? 2 items of news.
1. removed from S&P/ASX 300 Index – Effective Prior to the Open on 23 September, 2024
2. Tek lifted holding to 8.39 per cent, announced in 05 Sept.

I didn't comment about the removal from index, but considered it may be the reason for pump.

Reminds me of the hokey pokey.
You put your right foot in...

Will leave it to the insto's for now.

 

[Dona Ferentes]

Will leave it to the insto's for now.

someone is buying ... from 90c to $1.21 this week

 

[Dona Ferentes]

field of broken dreams

.

.
nh

 

[Country Lad]

Oh dear, it does appear the gloss of the new technology has worn off. From a high of $9.65 to now under $1. Pity, such a good concept with so much promise.

 

[Dona Ferentes]

AGM and it seems a lot of pausing going on ... now $0.80

FY25 strategy & priorities update
Focus on revenue generation & diligent cost management​

Strategy & prioritisation
• FY25 has seen a continuation of difficult market conditions due to low commodity prices, political uncertainty & challenging capital markets.
• To navigate these market conditions, we have focused on revenue generation and cost reductions to create a sustainable basis for growth.
• Project prioritisation further refined to concentrate resources on our most prospective industry sectors.

Revenue growth
• Focus on paid engineering work in Leilac and Sustainable Processing, and growth in direct sales in Magnesia business.
• FY25 revenues show continued growth in the first quarter.

Cost reductions
• Paused activity in Magnesia ‘specialties’ and magnesium metal – in addition to batteries in FY24.
• Streamlined technology development and engineering functions through integration and harmonisation of teams and technology designs.
• Reduced headcount by ∼20%.
• Reduced annualised costs by ∼AU$6m.

Creating a sustainable basis for growth & acceleration
Summary and FY25 Outlook​

• Challenging market conditions have slowed the pace of decarbonisation across the world. However, strong global commitments and policy drivers remain.
• To navigate current conditions, Calix has introduced diligent cost reduction measures and refined our prioritisation of projects.
• Core focus is on progressing priority projects to commercially demonstrate core technology in cement & lime, iron & steel, lithium & Direct Air Capture industries.
• Magnesia business is continuing to grow revenue & margins.
• Focusing on revenue growth, secured grant funding & cost management to provide the cash support required to fund current operations & technology development.
• Capital management & funding strategy continues to focus on opportunities to secure capital in the form of equity, debt or grants at the subsidiary & project level to fund projects & accelerate industry application.
• Calix remains poised to accelerate and deploy its unique platform technology to some of the world’s largest and most carbon-intensive industrial sectors.

 

[peter2]

CXL hasn't appeared on my radar for a long time as the price chart has been in a down trend for the past four years.
Calix just hasn't done enough since listing mid 2018. Classic boom to bust chart.

 

[Dona Ferentes]

($0.90) .... trading halt in order to undertake a proposed capital raising;

oh dear, that was a given.

 dnh

 

[Dona Ferentes]

($0.90) .... trading halt in order to undertake a proposed capital raising;

non-underwritten Placement raised A$20m via the issue of 26.7 million new ordinary fully paid shares at A$0.75 per share Calix will offer eligible Australian and New Zealand shareholders the opportunity to acquire up to A$30,000 in New Shares via a SPP
EDIT
SPP aims to raise approximately AU$5m, which may be increased at the Board’s discretion or subject to scale back and is not underwritten.