CMX
Chemx Materials Limited
ASX
Quarterly Activities/Appendix 5B Cash Flow Report
Sentiment:
Quarterly Activities Report
30 July 2024 4:54 AM
ChemX Materials advances its HiPurA pilot plant construction, completes a $500,000 share purchase plan, and continues government engagement in its pursuit of becoming a high purity alumina producer.
Capital raise
The company has applied for an advance from a funding provider against expected CMX FY24 R&D claim for circa $440,000.
The Company also has access to financial markets and believes it can successfully raise capital.
Summary
- ChemX Materials is progressing with the construction of its HiPurA HPA pilot plant in Perth, Western Australia.
- Early-stage commissioning of the leach circuit has commenced.
- The company completed a $500,000 Share Purchase Plan (SPP).
- ChemX issued 6,187,474 fully paid ordinary shares under the SPP and 4,200,000 fully paid ordinary shares under the placement of SPP Shortfall.
- 1,354,166 fully paid ordinary shares were issued to Directors for $65,000.
- 17,739,567 unlisted Options at $0.09 expiring 29/05/2027 were issued to investors.
- The company is engaged in ongoing discussions with the government for grant funding and support.
- ChemX launched a refreshed website to showcase the applications and demand for HPA.
- The company is engaged in discussions regarding the commercialization of its South Australian Manganese Assets, which include an inferred resource of 13Mt at 5.7% Mn.
- Payments totaling $105,000 were made to directors for employment costs and to related parties for services rendered.
- The company had cash and cash equivalents of $595,000 at the end of the quarter.
- The company estimates it has 1.5 quarters of funding available.
Sentiment
Score: 7
Explanation: The sentiment is moderately positive due to the progress in the pilot plant construction and successful SPP completion. However, the limited cash reserves and potential need for further capital raising temper the overall sentiment.
Highlights
- The HiPurA HPA pilot plant construction is advancing, with early-stage commissioning of the leach circuit underway.
- ChemX completed a $500,000 Share Purchase Plan (SPP).
- The company issued 6,187,474 fully paid ordinary shares under the SPP and 4,200,000 fully paid ordinary shares under the placement of SPP Shortfall.
- 1,354,166 fully paid ordinary shares were issued to Directors for $65,000.
- 17,739,567 unlisted Options at $0.09 expiring 29/05/2027 were issued to investors.
- ChemX is in discussions with the government for grant funding and support.
- The company launched a refreshed website.
- The company is engaged in discussions regarding the commercialization of its South Australian Manganese Assets, which include an inferred resource of 13Mt at 5.7% Mn.
- The company had cash and cash equivalents of $595,000 at the end of the quarter.
- The company estimates it has 1.5 quarters of funding available.
Positives
- The HiPurA pilot plant is progressing towards commissioning.
- The company successfully completed a $500,000 SPP.
- Ongoing engagement with the government could lead to grant funding.
- The new website launch aims to improve investor relations.
- The company has access to financial markets and believes it can successfully raise capital.
Negatives
- The company estimates it has 1.5 quarters of funding available.
- Operating activities resulted in a net cash outflow of $1,060,000 for the quarter.
Risks
- The company's cash reserves may require further capital raising in the near future.
- Reliance on R&D rebate finance poses a risk if the rebate is delayed or reduced.
- The company's ability to secure government grants is not guaranteed.
- Delays in pilot plant commissioning could impact the timeline for HPA production.
Future Outlook
ChemX anticipates strong growth in demand for HPA and aims to become a rapidly developing +4N HPA producer in H2 2024. The company is also focused on commercializing its South Australian Manganese Assets.
Management Comments
- Our HPA Pilot Plant is advancing well and we look forward to turning the key on this game-changing technology.
- ChemX has been well supported in closing out its Share Purchase Plan (SPP) and also Director support via placement, both completed during the quarter.
Industry Context
The demand for high purity alumina (HPA) is increasing due to its use in various technologies, including electric vehicles, semiconductors, and LED lighting. ChemX is positioning itself to capitalize on this growing demand with its HiPurA process. Competitors in the HPA market include Altech Chemicals, Alpha HPA, and Orbite Technologies.
Comparison to Industry Standards
- Altech Chemicals is developing a HPA plant in Malaysia, targeting the battery and LED markets.
- Alpha HPA is focused on producing HPA from kaolin clay using its proprietary solvent extraction technology.
- Orbite Technologies is developing a HPA production process using its proprietary technology.
Stakeholder Impact
- Shareholders: The SPP provided an opportunity for shareholders to increase their holdings.
- Employees: Continued progress in the pilot plant provides job security.
- Customers: The development of HPA production capacity could lead to future supply agreements.
- Suppliers: Ongoing construction and operations will generate revenue for suppliers.
- Creditors: The company's financial position will impact its ability to meet its obligations.
Next Steps
- Continue construction and commissioning of the HiPurA solvent extraction circuit.
- Pursue government grant funding opportunities.
- Advance discussions regarding the commercialization of South Australian Manganese Assets.
- Secure additional funding to support ongoing operations.
Key Dates
- 31 December 2021: Completion of the acquisition of HiPurA Pty Ltd
- 20 September 2023: Announcement of maiden manganese resource estimate of 13Mt at 5.7%Mn
- 4 August 2023: ASX release regarding convertible note funding facility
- 29/05/2027: Expiry date of unlisted options issued at $0.09
- 30 June 2024: End of the current reporting quarter
Keywords
HiPurA, High Purity Alumina, HPA, Pilot Plant, Share Purchase Plan, Manganese, Critical Materials, ChemX Materials
CMX
Chemx Materials Limited
ASX
Sector: Materials
Filings with Classifications
Capital raise
13 April 2025 9:55 PM
Insolvency Announcement
- Benelong Capital Partners (BCP) recapitalisation proposal requires ASIC, ASX and shareholder approval.
Worse than expected
29 December 2024 5:48 PM
Trading Suspension Extension Request
- The company is not ready to announce a Funding Update and Management Restructure, which is causing a delay in trading and is worse than expected.
Delay expected
29 December 2024 5:48 PM
Trading Suspension Extension Request
- The company is delaying the release of the Funding Update and Management Restructure announcement.
- The trading suspension is being extended due to the delay in the announcement.
Delay expected
22 December 2024 5:25 PM
Trading Suspension Update
- The company's funding update and management restructure are taking longer than anticipated.
- Negotiations with relevant parties have caused a delay in the announcement.
Capital raise
18 December 2024 5:08 PM
Suspension Announcement
- The announcement is related to an update on funding, which could indicate a potential capital raise.
Capital raise
16 December 2024 5:06 PM
Trading Halt Request
- The trading halt is pending an announcement regarding an update on funding, which could indicate a potential capital raise.
Capital raise
11 December 2024 5:11 PM
Financing Agreement Update
- Mercer has approved ChemX to raise up to $500,000 in additional debt financing.
Delay expected
27 November 2024 9:50 PM
AGM Presentation
- The commissioning of the 24tpa HPA Pilot Plant has experienced unforeseen delays in recent months, primarily due to the solvent extraction (SX) module awaiting electrical package installation.
Worse than expected
27 November 2024 9:50 PM
AGM Presentation
- The announcement revealed unforeseen delays in the commissioning of the solvent extraction module of the pilot plant, pushing back the timeline for full operation.
Better than expected
13 November 2024 5:17 PM
R&D Funding Announcement
- The receipt of the R&D refund exceeding the amount of the Radium Capital facility was better than expected, resulting in a surplus for working capital.
Capital raise
7 November 2024 1:19 AM
Price Query Response
- ChemX is in discussions with third parties regarding potential capital raisings.
- No formal agreements have been reached for any capital raising.
Capital raise
30 October 2024 9:06 PM
Quarterly Report
- The company has appointed TritonLake as Corporate and Financial Advisors to assist with capital, financing and corporate advisory.
- The company believes it would be successful with raising additional capital.
Worse than expected
30 October 2024 9:06 PM
Quarterly Report
- The delays in the Solvent Extraction module of the pilot plant represent a setback from the expected timeline for commissioning.
Delay expected
30 October 2024 9:06 PM
Quarterly Report
- Delays were experienced in the construction of the Solvent Extraction (SX) module due to longer than expected lead times on key process equipment and delivery of critical electrical infrastructure.
Capital raise
24 October 2024 6:10 PM
Notice of Annual General Meeting
- The 7.1A mandate seeks shareholder approval to issue up to 10% of the company's issued capital in equity securities without further shareholder approval.
- The funds raised under the 7.1A mandate are intended to be used for the 24tpa HiPurA high purity alumina (HPA) pilot plant and working capital.
Worse than expected
23 October 2024 5:19 AM
Annual Report
- The company reported a net loss after tax of \$4.49 million, significantly higher than the previous year's loss of \$4.18 million, indicating worse than expected results.
Capital raise
23 October 2024 5:19 AM
Annual Report
- The company raised \$1,616,600 through a share placement and share purchase plan.
- A \$6,000,000 convertible note funding facility was secured, with potential for further equity dilution upon conversion.
Capital raise
30 July 2024 4:54 AM
Quarterly Activities Report
- The company has applied for an advance from a funding provider against expected CMX FY24 R&D claim for circa $440,000.
- The Company also has access to financial markets and believes it can successfully raise capital.
Capital raise
29 April 2024 7:02 PM
Quarterly Activities Report
- The company completed a $1.1M placement.
- A Share Purchase Plan (SPP) is ongoing, aiming to raise up to $500,000.
- Directors have committed to subscribe for 1,354,166 shares, subject to shareholder approval, under the Placement to raise an additional $65,000 at the same issue price.
Delay expected
21 April 2024 7:10 PM
Share Purchase Plan Extension Announcement
- The closing date of the SPP has been extended from April 23, 2024, to May 10, 2024.
Capital raise
2 April 2024 5:48 PM
Share Purchase Plan Announcement
- The document mentions that it is highly likely that further funding will be required to meet the medium to long term working capital costs of the Company.
- Any additional equity financing will dilute shareholdings, and debt financing, if available, may involve restrictions on financing and operating activities.
Capital raise
13 March 2024 2:33 AM
Interim Report
- The company has access to a further $3,800,000 funding under its unsecured convertible note facility, subject to further agreement between the parties.
Worse than expected
13 March 2024 2:33 AM
Interim Report
- The company reported a net loss of $1,911,696 for the half-year ended December 31, 2023, which is worse than breakeven.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.