CXL - Calix Limited

[So_Cynical]

Calix basically saying that they can retro fit every European Cement plant with LEILAC technology, how many cement plants in Europe?
what's the alternative for all these plants to achieve low or zero emissions?

Calix up 12% today, so far, MC 760M ~ one would think that cap could go significantly higher.

 

[Dona Ferentes]

as @Ann posts for the European CO2 market

EU Carbon Permits

"EU Carbon Permits increased 26.40 EUR or 80.68% since the beginning of 2021, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity." Trading Economics...

www.aussiestockforums.com

For a full scale, developed and retrofitted LEILAC plant, CO2 capture costs (including Capex and Opex) for cement is estimated to be in the range of around €14 to €24 per tonne of CO2 avoided , the lowest reported of any technology , with scope for further cost reductions possible.

Are these equivalent?

 

[So_Cynical]

Are these equivalent?

Yes i believe they are, what Ann referred to are permits to pollute i think, offsets or permits have similar pricing because to pollute a Tonne one needs to offset or abate a Tonne or buy an offset....i need to do some reading on what's current in greenhouse euroland.

 

[Dona Ferentes]

ATH .... Calix closed near its highs of the day (5.90) at $5.85 on the second day of rises. Opened yesterday around 4.80 after the LEILAC announcement.

Apart from the algo trading and day traders leaving the building, price action involved several large licks being taken out when allowed to accumulate. This occurred several times during the day, at 5.50, 5.60, 5.70. But the biggest volume, of 120K of shares was at closing time today.

 

[Dona Ferentes]

... price action involved several large licks being taken out when allowed to accumulate. This occurred several times during the day, at 5.50, 5.60, 5.70. But the biggest volume, of 120K of shares was at closing time today.

and Australian Super revealed as lifting its holding in CXL from 7.11% to 8.18%. I would take them as a longer term holder

 

[So_Cynical]

LEILAC Virtual Tour, a video explaining how the process works.
~

 

[Dona Ferentes]

Is mid-stream the same as downstream? Will go with the flow, anyway.

Today's ASX Ann for PLS

Pilbara Minerals has entered a trading halt pending an announcement regarding the company entering into a transaction concerning a downstream joint venture.

11 May 2021

Pilbara Minerals targets “mid-stream” lithium chemicals opportunity with Calix .

Pilbara Minerals is evaluating with Calix the potential future production of value-added lithium salts/chemicals at the Pilgangoora Project, which could further rationalise the current supply chain for part of its spodumene concentrate production

 

[So_Cynical]

New all time high today at $5.96 prompted me to do some long awaited portfolio rebalancing, sold about half my CXL position for a profit of 687% ~ money needed for renovations, have decided to never to sell out of anything completely again.

 

[Dona Ferentes]

New all time high today at $5.96 prompted me to do some long awaited portfolio rebalancing, sold about half my CXL position for a profit of 687% ~ ... have decided to never to sell out of anything completely again.

Sensible (I suspect) . Depends where you are on the investment cycle, and yr timeframe, I guess.

Sixth day in a row up... and closed at $6.25 (with a high of 6.27, twice, late in the day). Wed and Thursday were strong; I half expected $6 to be a battleground if it retraced to that level. But no.

(Hold)

 

[Dona Ferentes]

and now:
Calix files a new patent for zero emissions iron and steel

Highlights:
• Calix announces the filing of a patent covering a new and significant application of its core technology for the production of zero CO2 emissions iron and steel
• Calix's “ZESTY”TM (Zero Emissions Steel TechnologY) process involves the use of the Company’s core “kiln” technology for the production of iron with the goals of:
o Reduced temperature of operation
o No pelletisation of iron ore required – enabling the processing of fines
o Able to be renewably powered, with intermittent operation
o Can approach theoretical minimum hydrogen use
• In addition, when producing steel from Calix’s ZESTY process:
o Calix’s “LEILAC”® (Low Emissions Intensity Lime and Cement) process can be used to produce zero-emissions lime - used in steel-making to remove impurities – with no need for lime pelletisation.
• Next steps: if confirmed by a testing program being undertaken by Imperial College, London, Calix will conduct scale-up testing at the Company’s Bacchus Marsh facility with ores from a potential customer that Calix has already engaged in discussions.

Conclusion

Calix’s patent outlines the use of Calix’s core technology to produce zero emissions iron and steel. The technology will need to be scaled and tested, and the patent upheld, to achieve commercial success. Initial testing is taking place at Imperial College in London. If positive results are confirmed, Calix will then conduct scale-up testing at the Company’s Bacchus Marsh facility with ores from a potential customer, who Calix has already engaged in discussions.

CEO of Calix Phil Hodgson said: “These are early days for the Calix ZESTY technology, however, given the materiality of both the potential for our technology in iron and steel production and the size of the environmental challenge, being similar to the one our LEILAC business is addressing, we will be pursuing this opportunity as quickly as possible – the world cannot wait any longer.”

.... and a long long journey !

(continue to Hold)

 

[So_Cynical]

Big announcement was up 16% ~ momentum is a hell of a thing.

 

[Dona Ferentes]

GCCS | Staging

Just another WordPress site

gccassociation.org

The GCCA 2050 Cement and Concrete Industry Roadmap for Net Zero Concrete​

 

[Dona Ferentes]

Calix had the AGM today. With it, the chair having a few words and a Presentation.

All about CO2 mitigation/ reduction, and the global backdrop of intensifying interest in Environment, Social and Governance (ESG) investing, and a rapidly evolving landscape of government, corporate and financial commitments to net-zero CO2 targets.

BUT ….. we need to mitigate 2.2 billion tonnes pa = 4,400 LEILAC-3’s = 1 built every ~3 days from now until 2050

CXL really took off from $7.60 in the last hour of trade, big licks going through, hit $8.00 (one trade only) at 3.55pm and has finished the day 11% up at $7.94

 

[Dona Ferentes]

the ASX query intimates that Calix characterises the Announcement as having the primary intention of communicating the ZESTY Patent Application to the market.

The response goes on to explain the context: "However, the underlying reason for the Announcement was not the making of the ZESTY Patent Application, rather it was the Board’s view of how the market would assess the value of the commercial implications of that application.

The Board’s view was formed in the period following the lodgement of the ZESTY Patent Application because Calix was approached by several commercial and academic parties with proposals relating to the testing of the viability of the ZESTY technology and the commercial exploitation of the patented technology. These approaches included the statements by Imperial College, London that, in their view, the application of the Calix technology in the manner represented by the ZESTY Patent Application was considered to have great potential. The pace and momentum of the market’s interest in the ZESTY technology, the scale of the addressable market and the public statements by Imperial College, London led the Board to conclude that the potential value of the technology represented in the ZESTY Patent Application was information which a reasonable person would expect to have a material effect on the price or value of Calix’s securities and to which none of the exemptions in ASX Listing Rule 3.1A would apply.

Guidances and the Code 2.a The lodgement of the ZESTY Patent Application with AusPat, in itself, was not sufficient to warrant disclosure under ASX Listing Rules 3.1. As the ASX has noted, ‘the fact that a patent application has been filed is seldom material, it is generally only after grant that a patent right becomes a material asset, which should be disclosed’. Calix has filed a number of patents since listing. The usual practice is not to disclose the applications as they are not regarded as material within meaning of ASX Listing Rule 3.1. As set out above in the ‘Background’, the primary purpose of the Announcement was the disclosure of the potential value of the technology, given the market interest in the ZESTY technology and the statements by Imperial College, rather than the ZESTY Patent Application itself.

For these reasons, Calix did not disclose the ZESTY Patent Application on 18 October 2021. Calix also confirms that the Announcement was not a guise to publish promotional, political or tendentious material, but simply to disclose information to the market, which a reasonable person would expect to have a material effect on the price or value of Calix’s securities.

Market response was to open a bit lower $7.84, bounce around a bit bit generally not fazed.

 

[Dona Ferentes]

... and that explanation didn't placate some. CXL experienced a sell-off after an hour's trading, getting as low as $7.00 and closing nearly 8% down at $7.29.

 

[Dona Ferentes]

today, an update on the mid-stream processing for spodumene (Lithium) with Pilbara (PLS) with the aim of Decarbonising the Hard Rock Lithium Raw Materials Supply Chain

TESTWORK, TECHNICAL INPUTS AND ENGINEERING SUPPORTING THE MID-STREAM PROJECT SCOPING STUDY COMPLETE

HIGHLIGHTS
• Scoping Study for the Mid-Stream Product Demonstration Plant nearing completion, with technical and engineering work now complete.
• Work to-date supports the Mid-Stream Project objectives for exporting a value-added lithium product from the Pilgangoora Project:
o calcination test work at Calix’s pilot scale BATMn reactor confirms high conversion rates (>95% for Alpha to Beta phase transition), for fine flotation spodumene concentrate1 produced from Pilgangoora;
o targeting a materially lower carbon emission footprint through extensive electrification of the calcination process powered by renewable sources, as well as reduced freight quantities; and
o potential to re-shape the existing spodumene supply chain and present global markets with a cleaner and more efficient supply chain solution.
• Next steps:
o Economic and commercial evaluations contributing to a completed Scoping Study early in the New Year.
o Subject to successful completion of the Scoping Study, progress negotiations for the formation of a joint venture.
o Agree a work program to develop a Demonstration Plant and ultimately commercialise the Mid-Stream Product’s process technology.

So, working towards another string in the CXL bow. Calix has had its recent slide ($8 to $5.70) arrested and up 10c. PLS is down 12% but that company brought out two announcements, the second one overshadowing the CXL progress

Delays have been experienced with both the Ngungaju Plant re-start and Pilgan Plant Improvements Project, particularly through plant commissioning, ramp-up initiatives and extended plant shut-downs (for both regular maintenance and to address equipment failures).

The Company’s ability to operate and improve the Pilgan Plant and restart the Ngungaju operation have been further impacted by the extended border closures which are now impacting the ability of all mining companies in Western Australia from accessing key personnel in construction, production and maintenance roles.

 

[Dona Ferentes]

coming back with CXL as my tip for 2022 Comp;

With quite a few applications for the technology under investigation, and with money in the bank, it is possible the Calix SP could surge again, especially if some deep pocketed player comes along.

 

[So_Cynical]

coming back with CXL as my tip for 2022 Comp;

With quite a few applications for the technology under investigation, and with money in the bank, it is possible the Calix SP could surge again, especially if some deep pocketed player comes along.

I think ill pick CXL again for the 22 comp, especially with the timing of the SP pull back, easy to see a scenario where CXL goes considerably higher in 22, with a MC of 945 at the moment there appears to be room to move higher.

 

[peter2]

I'm keeping an eye on CXL as well. I missed out on the massive price trend in 2021. CXL seems to be researching ways to capture carbon in many industries. If they manage to do it in only one industry it will be a company maker. If their tech can be adapted to several industries the potential for CXL will be huge.

Price is currently at an old break-out level. This should provide some support. I'm waiting for buy setup that forms above my line.

 

[Dona Ferentes]

Livewire readers love small caps. That said, your most-tipped smalls for 2021 took quite the tumble. These reader favourites fell 14% in a year when the benchmark, the S&P/ASX Small Ordinaries, lifted 12.75%....

... we surveyed thousands of Livewire readers in December to see how you are thinking about markets in 2022. So in this episode, we'll be taking a look at one of the interesting findings from that survey. Of course, it wouldn't be Buy Hold Sell without us asking our pros to analyse some of your favourite stocks. In this case, it's your top-tipped small caps 2022....

Ally Selby ( Livewire Markets ) : Next up we have Calix, which is a sustainable material processing player. It saw its share price skyrocket 546% in 2021. Josh, staying on you, is it a buy, hold or sell?

Josh Clark ( QVG Capital ) (SELL) : I think Calix is a sell. I'd love to see this become the next Australian success story. That said, I think there are a few risks in there that you're not necessarily getting compensated for. Obviously, it's a very early stage company. So not only do they not have revenue yet, but they don't quite have that product developed fully yet. So essentially, it's an early-stage science experiment.

Ally Selby: Over to you John. Calix, is it a buy, hold or sell?

John Deniz ( Paragon Funds Mgmt. ) (BUY) : I get Josh's science experiment type comment. It's something I usually say about other rubbish stocks. But I don't agree here. I think it's a buy. It's one of the very few ways to gain pure-play exposure to the de-carbonisation theme. The growth pipeline is enormous and it's only strengthening with the carbon price breaking all-time highs of over 80 euros a tonne. The carbon mitigation tech actually works, so I wouldn't call it a science project anymore. And the other thing that I'm cautious of ordinarily is whether they can scale it up and it looks like they'll be able to do that.


.... not exactly "no revenue" ... but it is early days and the bigger the scaling up, the higher the early spend

First, positive cash flow, growing revenues and a strong balance sheet.

$19.6million in revenue from Product Sales. plus R&D Incentives and Project Grants a-plenty