Why the Carbonxt (ASX:CG1) share price is rocketing 11% higher today

The world is increasingly turning to technology to reduce carbon emissions.

| More on:
Monadelphous share price rio tinto A small rocket take off from a laptop, indicating a share price surge

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Carbonxt Group Ltd (ASX: CG1) share price is rocketing in late morning trade, up more than 11%.

The ASX small-cap company is focused on producing specialised Activated Carbon (AC) products, including Powdered Activated Carbon (PAC) and AC pellets. These are used to help remove toxins and other pollutants created from industrial processes.

Below we take a look at the company's latest sales update.

What update did Carbonxt report?

Carbonxt's share price is soaring today after the company reported it has signed a new US$2 million (AU$2.7 million) contract to supply 1,000 tons of AC Pellets. The pellets will be delivered by the end of December.

The order comes from an existing power station customer in the US state of Wisconsin. Carbonxt will supply the pellets from its Arden Hills facility, located in the neighbouring state of Minnesota. This will see the plant return to full manufacturing capacity.

With the new contract, the Wisconsin power station's total order value has increased from US$3 million to at least US$5 million. The company reports it will realise all the revenue in the current financial year.

Commenting on the new contract, Carbonxt's managing director Warren Murphy said:

This scaled up order from a reliable and long-term customer reflects the steady and progressive revenue growth Carbonxt is now experiencing. To ensure we can reliably deliver the increased tonnage of AC pellets, we have been able to quickly implement new manufacturing processes at Arden Hills that do not compromise product quality or our margins.

With the permit for construction of its plant in the US state of Kentucky pending, and its Arden Hills facility running double shifts, Murphy said, "It is imperative that we commission the planned Kentucky facility in order to capture greater market share and pursue new sector opportunities."

Carbonxt hopes update the market on this "in the very near-term".

Carbonxt share price snapshot

Over the past 12 months the Carbonxt share price remains down 15%, compared to a 22% gain on the All Ordinaries Index (ASX: XAO) over that same time.

With today's intraday gains factored in, Carbonxt's share price has outperformed in 2021, up 22% year-to-date.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Two smiling work colleagues discuss an investment or business plan at their office.
Broker Notes

Which beaten down ASX 200 share did Goldman Sachs just upgrade to a buy rating?

The broker has become more bullish on this stock following last week's update.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Best Shares

The best ASX shares to invest $1,000 in right now

Analysts think that putting your money into these stocks could be a smart move.

Read more »

green etf represented by letters E,T and F sitting on green grass
Share Market News

4 ASX ETFs to buy for FY25 and beyond

Could these ETFs be top options for investors looking for long term picks?

Read more »

A smiling woman sips coffee at a cafe ready to learn about ASX investing concepts.
Opinions

How I'd invest $10,000 in ASX shares right now

I’m bullish about the prospects of these stocks.

Read more »

A fortune teller looks into a crystal ball in an office surrounded by business people.
Share Market News

What's the outlook for shares vs. property in FY25?

Generally speaking, there is optimism among the experts for both shares and property in FY25.

Read more »

Happy shareholders clap and smile as they listen to a company earnings report.
Best Shares

Top ASX shares to buy before earnings season

It's almost time to take a look at the books!

Read more »

sad party goer sitting alone after celebration
Share Market News

Here are the top 10 ASX 200 shares today

The ASX 200 had a horrible end to its trading week this Friday.

Read more »

A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising
Broker Notes

3 ASX shares brokers tip for significant outperformance in FY 2025

Leading brokers expect some significant outperformance from these three ASX shares.

Read more »