- Clean TeQ (CLQ) closed lower on the ASX this afternoon after revealing improved revenue but similar losses for the first half of the 2021 financial year
- The mining and water treatment business more-than-double revenue to $1.56 million compared to the same time period in 2019
- However, Clean Teq’s half-year net loss after tax was flat on the same prior corresponding period at $10.1 million
- The company said the bolstered revenue was largely driven by water project contracts, but expenses were still high as it builds up its Sunrise Nickel-Cobalt-Scandium Project in New South Wales
- Clean Teq completed a Project Execution Plan (PEP) for the Sunrise project over the half-year
- Moreover, Clean Teq is expecting assay results from three diamond drill holes at the project before the end of March
- Today’s report comes just days after Clean Teq urged investors to vote in favour of spinning-out its water treatment segment to form two separate entities
- Shares in Clean Teq closed 8.2 per cent lower at 28 cents per share
Clean TeQ (CLQ) closed lower on the ASX this afternoon after revealing improved revenue but similar losses for the first half of the 2021 financial year.
The mining and water treatment business more-than-doubled revenue to $1.56 million compared to the $666,000 over the same period in 2019.
However, despite more money flowing into the business, Clean Teq’s net loss after tax was largely flat on the prior corresponding period at $10.1 million. For reference, CLQ tabled a $10.3 million loss over the first half of the 2020 financial year.
Clean Teq said the stronger revenue was driven primarily from increases in contract income from its water project business that were brought to account during the six-month period.
Yet, as the company continues to build up its Clean Teq Sunrise Nickel-Cobalt-Scandium Project in New South Wales, spending is still outweighing revenue, hence the ongoing loss.
Clean Teq said it managed to complete a Project Execution Plan (PEP) for the Sunrise project over the half-year, meaning the company could update a 2018 definitive feasibility study (DFS) for the project with revised cost estimates and a new master schedule for development.
Moreover, CLQ kicked off a six-hole diamond core drilling program at the project during the half-year. The company told investors assay results from the first three holes of this drilling program are expected before the end of March 2021.
Spinning-out the water segment
Today’s half-year report comes just days after Clean Teq urged shareholders to vote in favour of demerging its water business so it could focus more on its battery metals arm.
The company said the decision came after a structural review from September 2020 that found both the water treatment segment and the metals and mining business would operate better as stand-alone projects.
As it stands, the water business is expected to keep the Clean Teq name, while the existing company will rebrand to Sunrise Energy Metals to reflect the pure-play focus on its battery metals assets.
Shares in Clean Teq fell 8.2 per cent this afternoon to close at 28 cents per share. The company has a $270 million market cap.