Release Date: August 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AnteoTech Ltd (ASX:ADO, Financial) reported its first green energy revenue through a major agreement with the world's largest vaccine manufacturer.
- The company achieved a significant reduction in base costs by $3.3 million over the year.
- AnteoTech Ltd (ASX:ADO) successfully resolved the Ferroglobe litigation suit favorably.
- The company launched new products such as AnteoBind NXT and anode optimization services, demonstrating rapid market entry.
- AnteoTech Ltd (ASX:ADO) finished the year with $5 million in cash and received an R&D rebate of $3.8 million.
Negative Points
- Despite increased revenues, the company is not considering dividends in the short-term.
- There were delays in shifting a significant order from the Serum Institute of India, affecting the annual revenue.
- The company is still in the process of finalizing the validation of the Anteo X production facility.
- The speed of progress with large organizations like EV1, EV2, and EV3 is slower than AnteoTech Ltd (ASX:ADO) would prefer.
- The company is still working through the final contractual terms for the new Vice President of International Sales.
Q & A Highlights
Q: When will the company start to pay dividends?
A: We are currently focused on building further revenues and prudently investing capital in growth. At this stage, we are not considering dividends for the short-term. - David Radford, CEO
Q: What is the anticipated start date for the new Vice President of International Sales?
A: We have a high-caliber candidate who has accepted our offer. We are finalizing the contractual terms and will announce the commencement date soon. - David Radford, CEO
Q: When does the company expect to receive an outcome for each of the two pending government grant applications?
A: We have received the outcome for the Queensland grant and are progressing well with other applications. We will announce details as soon as they are finalized. - David Radford, CEO
Q: What internal progress has been made under the $1.4 million QSC grant/project?
A: We are diligently working towards the milestones set by the grant and making very good progress. - David Radford, CEO
Q: Has any additional equipment been purchased to expand the Anteo X production facility past 20,000 liters per annum?
A: We are currently focused on developing the 20,000-liter capacity and have not invested in further capacity at this stage. - David Radford, CEO
Q: Is EV1 still on track to complete the design phase before the end of the calendar year?
A: Yes, EV1 remains on track, and we are continuing to work with them, including exploring higher silicon opportunities. - David Radford, CEO
Q: What is the status of the proposed joint development agreement with EV2?
A: EV2 is working through internal milestones, and we are collaborating with them on next-generation anodes. - David Radford, CEO
Q: What is the status of each of the consumer electronics projects?
A: We have provided samples of Anteo X to various companies and are working with them to accelerate the evaluation process. - David Radford, CEO
Q: What is happening with the REACH registration for Anteo X?
A: The REACH registration is an administrative process, and we are working with consultants in Europe to complete the paperwork. - David Radford, CEO
Q: How will you deal with Anteo X demand that exceeds 80,000 liters per year?
A: We are considering a toll or contract manufacturing model in Europe to meet demand, and this has been discussed with potential partners. - David Radford, CEO
Q: Can you provide an update on the ongoing testing of the 70% silicon anode?
A: The 70% anode has exceeded our expectations, and we are now working on achieving 80% energy retention. - David Radford, CEO
Q: How much AnteoBind can AnteoTech produce, and is it enough to meet the requirements of the Serum Institute of India and Vidcare?
A: We currently have enough AnteoBind to meet demand for the next 12 months and are scaling up production to meet future requirements. - David Radford, CEO
Q: What do you mean by resolving legacy issues, and can you assure shareholders these are behind you?
A: We have resolved issues related to the EuGeni COVID project and the Ferroglobe litigation, and we are entering FY 2025 with a clean balance sheet. - David Radford, CEO
Q: What revenues are you targeting this year in life sciences, and has this become more important than clean energy?
A: We are not providing specific revenue guidance but expect growth from the Serum Institute of India and Vidcare. Both life sciences and clean energy are equally important to us. - David Radford, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
