Clean TeQ Water Ltd (ASX:CNQ), a subsidiary of Sunrise Energy Metals (once Clean TeQ), was recently demerged from the parent company to allow for better organisation and governance, as the core company continues to develop its battery metal assets.
CNQ CEO Willem Vriesendorp commented in the company’s quarterly report: “During the quarter Clean TeQ Water successfully demerged from Sunrise Energy Metals, hailing a new era for our organisation. We look forward to delivering value for our shareholders using our suite of unique water technologies and our strong pipeline of existing projects and new opportunities.”
The company’s results from its first official quarter were solid, with cash receipts of A$1.6 million and A$13.8 million cash on hand as of September 30, 2021.
Operational net cash expenditure constituted A$2.1 million, including A$300,00 in one-off payments and A$600,000 in upfront payments incurred on future project phases that Clean TeQ Water expects to recover in subsequent quarters.
Trading and operational highlights
CNQ signed two new contracts in the quarter with a value of A$5 million and five projects are under construction with a contract value of A$13 million:
- First project with National Energy Services Reunited Corp (NESR) in the Oil and Gas sector with the company pursuing multiple follow-up opportunities;
- First EVAPX contract outside of China to treat agricultural brine at much-reduced carbon footprint compared to the current method; and
- Three projects in construction in municipal and mining sectors each using unique ion exchange technology.
The company also has a technical services contract with parent company Sunrise Energy Metals underway for the recycling of battery metals, and CNQ has successfully produced hundreds of square metres of NematiQ’s novel graphene membranes, with additional patent applications ongoing.
Clean TeQ Water commenced trading independently on the ASX on July 2, 2021, and has since developed a diverse pipeline of future opportunities, providing a good spread across its portfolio of technologies and sectors.
Following the appointment of Robyn McLeod to the board of CNQ, and Magda Klapakis as chief financial officer, the company has ‘significant’ activities planned for the current quarter, including commercial discussions on potential projects after pilots.