Green360 Technologies steps up kaolin performance as MKX gains traction

• Improved pricing and cost savings strengthen the existing kaolin business
• Infrastructure applications support MKX’s expanding commercial customer base
• Existing processing access supports demand development ahead of dedicated capacity

Special Report: Green360 Technologies has lifted revenue and sharply reduced operating cash outflow as it develops a commercial market for its MKX concrete ingredient.

Green360 Technologies (ASX:GT3) reported unaudited revenue of approximately $3.6m for the September quarter, up 9% from $3.3m in the June quarter.

Net operating cash outflow narrowed to $118,000 from $1.13m over the same comparison, reflecting increased revenue and previously announced cost-saving initiatives.

The improvement accompanied the first binding MKX supply agreement with Holcim Australia during the quarter. A second agreement with Eifers Civil followed after quarter end, extending the customer base for the locally produced calcined-clay material.

Stronger trading at Pittong

Green360’s established kaolin operations at Pittong in Victoria continued supplying customers in paper, paint and other manufacturing sectors.

Customer price increases implemented from the start of July contributed to the higher quarterly revenue. Improved terms with Boyer Paper Mill included a 19% increase in the contracted unit price and a binding minimum take-or-pay commitment of 4,000 tonnes for FY27.

Those terms provide a minimum volume commitment for the existing kaolin business while Green360 works to expand MKX sales into concrete production.

Management is targeting a return to positive operating cash flow during FY27 as further benefits from pricing adjustments and cost reductions are realised.

Turning applications into repeat demand

MKX is a metakaolin supplementary cementitious material, made by heating kaolin and used to replace part of the Portland cement in concrete.

Calix explains that replacing some conventional cement clinker with calcined clay can reduce clinker-related process emissions. It also expects supplies of traditional supplementary materials, including fly ash from coal-fired power stations and slag from steelmaking, to become more restricted as those industries change.

Green360 is developing its locally sourced alternative through practical infrastructure use and commercial supply relationships.

More than 3500 cubic metres of concrete containing MKX has been placed across Melbourne infrastructure projects, including Melbourne Airport and Level Crossing Removal projects.

The Holcim and Eifers agreements each cover up to 4,800 tonnes over an initial 12-month period. Combined maximum volumes of 9,600t across their respective terms equate to 32% of Green360’s 30,000tpa market-creation target.

Green360 also established an industry advisory board during the quarter to support technical approvals, customer engagement and broader MKX adoption.

Building capacity for growth

“Our approach has always been deliberate: establish the market, demonstrate commercial demand and then scale production capacity to meet it,” executive chairman Aaron Banks said.

“Through our toll-treatment arrangement with Calix, we have access to up to 30,000 tonnes per annum of calcining capacity, enabling us to develop that market without immediately committing the substantial capital required for dedicated production infrastructure.”

That production route uses kaolin from Pittong, toll processed at Calix’s Bacchus Marsh facility. It allows Green360 to supply customers using existing third-party infrastructure while assessing its longer-term production requirements.

The next steps are to secure further commercial agreements and increase physical MKX sales. A scoping study for a proposed dedicated calcining facility is targeted for completion by the end of 2026, informing the next stage of capacity planning.

This article was developed in collaboration with Green360 Technologies, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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