Pivoting Towards Sustainable Minerals and Green Technology

Executive Summary

Green360 Technologies Limited (ASX:GT3), formerly known as Suvo Strategic Minerals, has recently rebranded to reflect its strategic shift towards sustainable mineral applications and green technology solutions. The Perth-based company continues to leverage its position as Australia's only hydrous kaolin producer, with its flagship 100% owned Pittong operation located 40km west of Ballarat in Victoria. The company's core business remains centered on the mining and exploration of mineral properties while continuing to expand into environmentally conscious industrial applications.

Product Portfolio Expansion

Green360 is actively diversifying its product portfolio beyond raw mineral extraction by developing new formulations and processes for:

• G360 Cement: A low-carbon alternative to traditional cement
• Eco-friendly adhesives and inks
• Sustainable paint products
• Paper and board products
• Pharmaceutical-grade kaolin applications
• Green rubber compounds

With established operations in Australia and growing technical expertise in mineral processing, Green360 has opportunities to expand its market reach both domestically and internationally. This expanded focus could potentially create multiple revenue streams and reduce dependence on any single market.

Environmental Sustainability Focus

The company's rebranding as Green360 Technologies aligns with growing market emphasis on sustainable solutions and environmental responsibility. This positioning appeals to ESG-conscious investors and customers seeking greener alternatives to traditional industrial materials.

Highlights

Green360 Technologies has demonstrated positive revenue momentum in its kaolin operations during the latter half of 2024. For the half-year ended December 31, 2024, the company generated A$6.24 million in turnover, representing a modest increase over the prior corresponding period's A$6.04 million. More significantly, the company achieved a gross profit after depreciation and amortization of A$0.46 million, marking a substantial 491.5% improvement compared to the previous period.

The December 2024 quarter specifically showed accelerating growth, with hydrous kaolin revenue reaching A$3.3 million, a 10.4% increase compared to the same quarter of the previous year. This quarterly performance contributed to significantly improved operational metrics:

• Pittong Operations EBITDA: A$0.51 million (+201% year-over-year)
• Pittong Operations Net Profit: A$0.39 million (+164% year-over-year)

Despite these operational improvements, the company still reported an overall half-year loss of A$1.59 million, though this represents a considerable improvement from the A$2.61 million loss in the prior corresponding period. The reduction in losses suggests effectiveness in the company's cost optimization initiatives and growing sales momentum.

Cash Position and Capital Management

As of December 31, 2024, Green360 Technologies maintained a cash position of A$2.74 million, a slight increase from A$2.22 million at the end of the previous quarter. The company successfully raised A$2.0 million through an oversubscribed placement during the December quarter, with cornerstone investment from PERMAcast shareholders accounting for 15% of the placement.

Additionally, the company received approximately A$0.4 million as a refund from its R&D tax incentive claim for the financial year ended June 30, 20242. The quarterly cash flow report indicated decreased cash receipts of approximately A$0.4 million during the quarter, primarily due to timing differences with some customers paying in early January 2025.

Kaolin Business Expansion

The growth in turnover compared to previous periods has been primarily driven by the company's strategic focus on Asian markets and specific industry targeting. The company has expanded its customer base in China and Malaysia, particularly in high-end automotive paints, rubber, inks, and pharmaceuticals industries.

A significant post-quarter development was the extension of a major supply contract with Norske Skog for an additional three years. This agreement includes anticipated purchases of between 21,000 and 24,000 tonnes of hydrous kaolin, representing an increase in order volumes of up to 47% compared to the previous contract. This extension provides sales growth certainty for the 2025 calendar year and beyond.

Cost Optimization Initiatives

During the half-year, Green360 Technologies implemented several key initiatives to optimise operational costs at its Pittong facility, including:

• Changes to processing methods
• Reduction of operational working hours and staffing levels
• Scale-back of administrative costs

These measures resulted in an 8% reduction to cost of sales compared to the prior corresponding period, contributing to the improved gross profit performance.

Joint Venture Developments

A major strategic focus for Green360 Technologies has been the commercialisation of lower carbon cement and concrete formulations. During the reporting period, the company:

1. Executed a Shareholders Agreement with PERMAcast R&D Pty Ltd for 50/50 ownership of two newly incorporated joint venture entities established to bring low carbon cement and concrete products to market
2. Conducted on-site mix-design trials utilising various industrial by-products, targeting specific parameters including concrete strength to meet end product requirements
3. Commenced upgrading a proprietary licensed pilot scale concrete batching plant, with expected commissioning by the end of Q2 CY 2025 and anticipated throughput capability of 2 cubic metres per hour
4. Executed a non-binding term sheet with PT Huadi Bantaeng Industry Park to establish a joint venture entity to commercialize and manufacture low carbon cement products in Indonesia

The company's testing of low carbon cement formulations using nickel slag in Indonesia showed promising results, with samples returning an average strength test of 29.9 Megapascals (MPa) after 7 days, reaching 39.14 MPa after 28 days.

Green360 Technologies is demonstrating improved financial performance through its kaolin operations while strategically positioning itself in the emerging low-carbon construction materials market. The company's dual focus on optimising its existing operations and developing new sustainable technologies provides multiple possible pathways for growth. While challenges remain in achieving consistent profitability and positive cash flow, recent trends in revenue growth, cost management, and strategic partnerships indicate positive momentum heading into 2025.

The company's success will likely depend on its ability to continue expanding its kaolin customer base while efficiently bringing its low-carbon cement and concrete products to commercial scale in both Australian and international markets.

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