Join our daily newsletter At The Bell to receive exclusive market insights
- Papyrus Australia (PPY) has released the company’s March 2020 quarterly activity report, which detailed very little activity
- The company primarily spent the quarter supporting the Egypt Banana Fibre Company, which is continuing to produce promising results
- Papyrus Australia aims to demonstrate the commercial and sustainable potential in processing agricultural waste fibres
- The company’s quarterly expenditure was primarily compliance costs, relating to ASX fees, share registration fees, audit fees, and legal fees
- Papyrus Australia shares remain grey at Monday’s close, trading for 1.1 cents each
Papyrus Australia (PPY) has released the company’s March 2020 quarterly activity report, which detailed very little activity.
As in previous periods, the company spent the March quarter focusing on the Egypt Banana Fibre Company (EBFC). Papyrus Australia has had a relationship with the Egyptian business for many years now, and formed a joint venture with it in 2011.
Both companies seek to promote recycling and sustainability by converting banana palm tree trunk waste into forest wood alternatives. To that end, Papyrus Australia facilitated the establishment of the world’s first banana plantation waste fibre processing facility in Egypt.
Under the companies’ current licensing agreement, the EBFC will pay Papyrus Australia royalty and license fees quarterly in arrears. These will be based on payment of invoices raised by the EBFC to its clients for delivered products.
During the March quarter, Papyrus Australia has continued to support the EBFC, which has, in turn, continued providing positive results.
At the company’s AGM, announced November 2019, Papyrus Australia’s Chairman stated the company’s main goal in Egypt; to demonstrate the commercial potential of an agricultural waste fibre processing operation in a developing country.
Papyrus Australia reported no other activities for the quarter besides this. However, the company listed some expenses, most of which were related to compliance costs, like ASX and share registration fees. The company spent approximately $100,000 on audit fees, and $60,000 on fees for legal action regarding its former CEO, Allan Branch.
Papyrus Australia reported that it made no payments to an associate or related party during the uneventful March 2020 quarter.
Papyrus Australia shares remain grey at Monday’s close, trading for 1.1 cents each.
