Pinned straw:
A$10m Contract (19/12/25)
A bit of a price pop in response to a contract for the Magnesium part of the Calix business, with A$10m in additional annual product and service revenue for 3 years (plus 2 year option) from an un-named new customer in the US.
Calix’s FY25 revenue was A$33.9m so this is a 29% revenue increase and for the Magnisiam part of the business which had FY25 revenue of A$24.3m it’s a 41% increase. Margins in this part of the business are just under 40%, however given the new contract is expected to be serviced via existing production and distribution facilities, the margin is likely to improve.
Despite being “one of the worlds’ largest agricultural companies that generated multi-billion revenues in 2024”, Calix doesn’t see that naming the customer is of material value to investors… and excluding it is not misleading by omission.
Given the price move, let’s see if ASIC agrees.
I own a small position thanks to price movements and selling about a third in 2022 but the balance is free carry while I wait for value to emerge in the Leilac part of the business rather than water treatment. Hence this announcement is of passing interest and low value to me, but welcome as it assists in providing some financial support to the business.
I think in the current environment the clean green but bloody expensive concepts will be falling over.
Just had a call from a friend who owns an EPCM company who recommended his mate to a competitor. Guy got the job after 2.5 months of back and forth, one month down the line the company pulls the plug on the whole new engineering division, see ya later. Indonesian nickel has been coming for a while, but true to form we ignore that and let the sky fall in on the day.
Next stop Lithium, the news will be by the end of March "Lithium prices increase, cost of EVs likely to increase". I can see it now. Chinese are out of cheap alternative to spodumene plus no more money to continually manipulate the prices as their economy is in the toilet.
And then there's "Trump wins Presidency, Walmart to close as Chinese product to be hit with 60% tariffs."
And then...."Ma Walton seen fleeing scene with Bushmaster over her shoulder after Trump assassinated".
I think I need to write a screen play for Netflix!
Yes, it was the ZESTY program.
This is what I received:
"The cost of production is way too high @ 700 AUD/t – and you need to also add the capital costs which will be massive. HBI is a scrap substitute which typically sells for USD 200 -400 USD/t at the moment but historical scrap are more in the range of USD 150-250/t.
It makes much more sense to upgrade a low-grade ore – such as a magnetite- into a DR pellet and use normal proven DRI technology to produce HBI. Cost will be much lower (~ 400 AUD/t) and all proven tech and can be 0 carbon. Whoever came up with this does not know the steel industry."
Want to confirm if you are referring to this part
Open the footnote and I get this chart. Conventional costs is around $350-450.
Calix is around USD 400-500 (AUD 650-800) at pilot scale only. But it is large variance so I will take the higher figure, meaning still work to be done.
Would also need to research a few other Hydrogen DRI projects which there are a few from doing a simple search or from the Calix presentation
Electra I believe is backed by Bill Gates.
Just to add, I wonder if the power requirements (renewable + heat recovery) below are enough to power the reactor and produce the hydrogen from the electrolyser?
