Join our daily newsletter At The Bell to receive exclusive market insights
- Environmental Clean Technologies (ECT) has doubled its customer receipts and substantially drawn down its cash reserves over the June quarter
- Over the period, the cleantech developer delivered $6000 in customer payments, compared to just $3000 during the March quarter
- While the increase is significant, the receipts are still low; ECT reported $21,000 and $104,000 in customer receipts over the December and September quarters respectively
- The recent drop could be attributed to a fire at ECT’s Bacchus Marsh plant, which limited production capacity and impeded customer receipts during the March quarter
- Meanwhile, the cleantech company’s cash reserves dropped 37 per cent over the June quarter
- All up, it leaves ECT with just over $1.1 million in the bank as it heads into FY21
- Following today’s announcement, ECT shares are steady, trading for 0.2 cents per share
Environmental Clean Technologies (ECT) has doubled its customer receipts and substantially drawn down its cash reserves over the June quarter.
Over the period, the cleantech developer delivered $6000 in customer payments, compared to just $3000 during the March quarter.
While the increase is significant, the receipts are still low; back in January, ECT reported $21,000 in customer receipts. In the quarter before that, it brought in $104,000.
The recent drop could be attributed to a fire at ECT’s Bacchus Marsh plant back in October; the company said its limited production capacity impeded customer receipts during the March quarter.
Over the June quarter, ECT didn’t release any news about its projects to the market. However, the company still shed roughly $350,000 on staff, admin and corporate costs.
All up, it means ECT burnt $234,000 on operating activities during the period, but still ends the financial year $158,000 in the black.
This quarter, ECT received $56,000 in government grants. However, that’s just a small drop in the pond compared to the $1.51 million delivered in the March quarter — the driving force behind ECT’s charge into positive operational cashflow territory.
Meanwhile, the cleantech company’s cash reserves dropped 37 per cent over the June quarter.
The bulk of the cash was used on ECT’s financing activities — primarily a $419,000 borrowing payment — and to cover operational costs.
All up, it leaves ECT with just over $1.1 million in the bank as it heads into FY21.
However, if this quarter’s spending levels are maintained, ECT only has enough cash to get it through one full quarter — meaning it may not be long before it taps investors for some extra cash.
Environmental Clean Tech last executed a fundraise in late January, adding nearly $1.6 million to its balance sheet.
Moving into the current quarter, ECT is channelling its energy into the Coldry Project upgrade in Victoria. The company’s patented Coldry technology can be used to dewater brown coal — an overlooked but readily-available resource — and transform it into Black Coal Equivalent (BCE).
Significantly, BCE is said to be a ‘cleaner’ burning coal fuel when compared to its mainstream coal equivalents.
Following today’s announcement, ECT shares are steady. Stock is trading for 0.2 cents per share at 2:13 pm AEST.
