A Message from the CEO
Welcome to issue 49 of the Calix Newsletter and our first edition for 2025.
We are pleased to provide a summary of our financial results for the first half of the 2025 Financial Year (1HFY25), highlight commercialisation milestones in key projects, introduce you to some important new appointments, and share news of recent global recognition the Company has received.
1HFY25 financial results
Through a focus on commercialisation priorities, immediate revenue generation and cost reductions, Calix has delivered significant progress towards creating a sustainable basis for growth in the financial year and beyond.
The Group reported revenue growth and commercial progress across all lines of business, with strong global commitments and policy drivers continuing in major target markets.
Our direct product sales in Magnesia continued to show strong growth, while our Leilac subsidiary business reported a further increase in services revenue. Importantly, Leilac’s engineering services are generating immediate revenues and enabling that line of business to create self-funded projects prior to the commencement of operations and the receipt of licensing royalties.
We also expect our focus on immediate revenue generation to deliver further returns in the second half of the financial year, with direct line of sight to near term revenue growth in Magnesia and Leilac. Indeed, since last week’s half year results presentation, Leilac has received a purchase order for US$1.25m, or approximately A$2m, with further growth in engineering services revenues expected in the second half of the year.
Throughout the period, diligent cost management and increased focus on our commercial priorities have assisted in reducing costs in H2FY25 and beyond. We have streamlined our organisational structure across the Group and discontinued non‑priority activities, enabling us to reduce costs while maintaining our ability to deliver our commercial priorities. We expect the financial benefits of these efforts to begin to be realised from the second half of the financial year.
The Company’s balance sheet remains strong and essentially debt free, bolstered by a $20 million Institutional Placement in December 2024, and a Share Purchase Plan, which closed in January, raising a further $2.1 million. We are grateful for the strong support from new and existing shareholders to enable the Group to maintain momentum in commercialisation, including continued progress in funded projects and the runway to enable financing of additional key demonstration projects at the subsidiary level.
Our balance sheet, together with growing revenue streams and diligent cost management, provide at least an 18-month cash runway to pursue currently funded projects and subsidiary capital raisings.
You can view more information on the Company’s financial performance on pages 3-4 and in our Investor Centre.
Operational highlights
Recent progress and commercial milestones have renewed momentum in our world-leading projects across the cement and lime, iron and steel, lithium and Direct Air Capture (DAC) sectors. These are huge markets with growing demand for economically and environmentally sustainable mineral processing solutions.
Despite a temporary pause on our Mid-Stream Demonstration Project with PLS, the Project is progressing well following the announcement of a $15 million grant from the Government of Western Australia. It remains on budget and aims to conclude construction and commence commissioning in late 2025.
Notably, the new grant will reduce the capital requirements for the JV. Additionally, Calix’s free-carried equity in the project, in recognition of our intellectual property contribution to the JV, added a non-cash gain of $8.8m in 1HFY25.
Leilac’s full-scale commercial projects for cement and lime are also progressing well. This progress included the award of two $1.5 million grants from the U.S. Department of Energy in January 2025 for pre- Front-End Engineering Design (pre-FEED) studies.
The first project, with Titan Cement, Amazon and Virginia Tech in Roanoke, Virginia, aims to deploy the Leilac technology to capture over 500ktpa of CO2 and enable the use of lower carbon and lower cost fuels in cement manufacturing. The second project, with Mississippi Lime Company (MLC), aims to capture approximately 150ktpa of CO2, enable the use of alternative fuels, and demonstrate viable pathways to net-zero lime manufacturing.
A recent Executive Order has delayed funding negotiations, however Federal and Republican support for Carbon Capture Use and Storage is expected to continue. It was pleasing to see the opening remarks from Republican Senator Shelley Moore Capito (R-W.Va.), Chairman of U.S. Senate Committee on Environment and Public Works at a recent hearing, who stated “Innovative CCS technologies will play a critical role in reducing emissions, particularly in facilities that face unique challenges because of their size, location, or industrial application”.
We remain optimistic that these grant awards will be executed and continue to work with our partners to progress these exciting first-of-a-kind projects.
The grant success in the U.S. follows the award of a $15 million grant from the Australian Government earlier in the Financial Year for Project ZETA, a demonstration project in South Australia for zero emissions lime and cement. This project is now well underway and nearing completion of its pre-FEED phase.
2HFY25 outlook
Further anticipated revenue growth from Magnesia and Leilac, as well as the realisation of approximately $6 million in annualised cost savings, are expected to improve cash flows in the second half of the 2025 Financial Year (2HFY25) while we focus on delivering commercial milestones.
You can see more information on the progress of each of our core projects in our recent half year results presentation, available in our Investor Centre.
Recognition as a leading global solution
I was delighted to attend COP29 in Baku, Azerbaijan in November 2024 where Calix’s ZESTY was announced as the winner of the global Net-Zero Industries Award for Outstanding Project. I was very pleased to attend alongside our R&D Program Lead, Gloria L. Diaz Arenas, who was awarded the national Young Talents Award.
The ZESTY project was also awarded the Best Contribution to Industry-Research Collaboration at the Australian Heavy Industry Low-carbon Transition Cooperative Research Centre (HILT CRC) 2024 Annual Conference. And in breaking news, Calix won the ‘Decarbonizing Industrial Heat and Electrification’ category for the Decarb Connect North America Next Gen Awards held in Houston, Texas last week.
Calix’s platform technology is becoming recognised as a leading solution across each of our key industries, and we look forward to continuing to urgently progress our projects and create long term value for our shareholders and our partners.
More information on the awards is available on pages 6-10 and our website.
Planned board renewal
In case you missed the announcement, our Founder, Dr Mark Sceats retired from the Calix Limited Board of Directors at our Annual General Meeting held in November 2024. I am pleased to confirm that Mark continues in his role as Chief Scientist, continuing to bring exceptional innovation, creativity and passion to the role. His contribution to the Company to date is immeasurable.
Mark’s retirement from the board followed Peter Turnbull’s planned retirement in September 2024, when Alison Deans became chair of the board. The retirement of Mark and Peter, along with the appointments of Dr Sarah Ryan and Peter Dixon in January 2024, concludes the current phase of planned board renewal.
On behalf of the Calix board, management team and all the staff, we thank our shareholders for their continued support, and our customers and partners for their continued commitment and collaboration.
In particular, I would like to take the opportunity to recognise and thank the whole Calix team. Together, we are building solutions with the potential to have a lasting positive impact on our planet. As I’ve said before, it’s not an easy journey, but we are making solid progress. Importantly, the steps we have taken in the first half of the financial year have created a sustainable basis from which we can continue to grow and ultimately deliver on the vast potential of our unique platform technology and talented team.
I hope you enjoy the newsletter.
Phil Hodgson
Managing Director & Chief Executive Officer
1HFY25 results: Calix delivers revenue growth, cost reductions & commercial milestones
In 1HFY25, Calix made significant progress towards creating a sustainable basis for growth, including increased revenues, cost-base reductions, and an extended cash runway to pursue funded projects and subsidiary capital raising.
Revenues were up 11%, while a non-cash gain of $8.8m resulted from the PLS Joint Venture. Discontinued activities and an organisational restructure led to one-off costs of $3m in the Financial Period, while $6.6m was invested in the Mid-Stream Demonstration Project. The cost-saving measures are expected to deliver ~$6m in annualised savings starting from January 2025, while only $2.5m in capital contributions from Calix to the Mid-Stream Project remains.
The Company’s balance sheet, bolstered by $22.1 million in fundraising, provides an extended cash runway, with at least 18-months to pursue independently funded projects and subsidiary level capital raisings for Leilac and ZESTY. Further revenue growth and the effect of cost savings are anticipated in 2HFY25.
Mid-Stream Demonstration Plant Project recommences following government grant
Calix and PLS have resumed the world-first Mid-Stream Demonstration Plant Project following a $15 million grant from the Government of Western Australia (WA). With strong support from both the WA and Australian governments, the project will construct a demonstration-scale plant featuring the first industrial-scale electric spodumene calciner. Aimed at decarbonising lithium processing, delivering a lithium-enriched mid-stream product, and capturing and creating more value from Australia’s mineral and renewable resources, Project commissioning is expected to commence in the December Quarter 2025.
Calix’s ZESTY wins global Net-Zero Industry Award at COP29
Calix’s Zero Emissions Steel TechnologY (ZESTY) won the global Net-Zero Industries Award for Outstanding Project at COP29 in Baku, Azerbaijan. The award – organised by Mission Innovation’s Net-Zero Industries Mission, whose member countries account for over 50% of global industrial emissions – recognised ZESTY’s success and potential to deliver a lowest cost solution to produce green iron and steel, which is currently responsible for 8% of global CO2 emissions.
Calix’s R&D Program Lead wins Young Talents Award
Calix’s R&D Program Lead, Gloria L. Diaz Arenas, won the Australian National Young Talents Award at the Net-Zero Industry Awards 2024 COP29 in Baku, Azerbaijan. The award, presented by the Net-Zero Industries Mission, honours Gloria’s contribution to decarbonising cement and lime production and advancing atmospheric carbon removal. Gloria wrote about her experience at COP29, sharing a firsthand look at the challenges and breakthroughs in climate action.
Calix appoints Senior Business Development Managers, Ian Dunn & Sebastiaan van Dorp
Calix appointed Ian Dunn and Sebastiaan van Dorp as Senior Business Development Managers in its Sustainable Processing business. Both professionals bring extensive experience, invigorating the Company’s commercialisation progress in sustainable processing. Sebastian’s expertise lies in iron and steel, while Ian’s background spans global projects in water treatment and critical minerals. Their roles will drive commercialisation and business growth and help deliver positive impact in the metals and minerals industry.
Calix appoints Greg Holmes as new General Manager, Magnesia
Calix has appointed Greg Holmes as the new General Manager of its Magnesia business. Holmes brings over 35 years’ experience in chemical processing and manufacturing, including roles at IXOM, Orica, Omnia and BME. Known for his values-driven leadership, Greg aims to drive growth and innovation at Calix, focusing on sustainable solutions. He assumed his position in December 2024, ensuring a seamless transition with retiring General Manager, Bill Karis.
Breaking news: Calix wins at Decarb Connect North America’s Next Gen Awards
Calix won the ‘Decarbonizing Industrial Heat and Electrification’ category at Decarb Connect North America Next Gen Awards on 27 February 2025 in Houston, Texas. The award recognised Calix’s core platform technology’s potential to revolutionise industrial heating in sectors like cement, steel, alumina, critical minerals and direct air capture.
ZESTY recognised at HILT CRC 2024 Annual Conference
Calix’s Zero Emissions Steel TechnologY (ZESTY) project won the Best Contribution to Industry-Research Collaboration Award at the HILT CRC 2024 Annual Conference. The project tested Australian iron ores in a hydrogen flash smelting process and was delivered through collaboration with Swinburne, University of Adelaide, Fortescue, Roy Hill, Liberty and Grange Minerals.
New ZESTY video
Calix CEO, Phil Hodgson describes how Calix’s Zero Emissions Steel TechnologY (ZESTY) is paving the way for decarbonising the iron and steel industries in a new video. With support from organisations like HILT CRC and ARENA, and recognition such as the prestigious Net-Zero Industry Award, we are proving that innovative solutions can drive sustainable change in hard-to-abate industries.
ZESTY presents at Net-Zero Industries Mission webinar for industry
Calix’s Sustainable Processing General Manager, Chris Ormston, presented at the Net-Zero Industries Mission webinar with other experts, exploring diverse decarbonisation pathways for steel. The event highlighted innovative approaches, including Calix’s H2-DRI technology, aimed at reducing emissions in steel production.
The Calix Technology Centre: enquire about testing
Calix’s Technology Centre in Bacchus Marsh, Australia, is the Group’s premier R&D facility with three Calix Flash Calciners enabling varying scales and energy inputs supported by state-of-the-art laboratory facilities. The centre provides material testing and project development capabilities, supporting initiatives in green iron, cement, alumina and critical minerals. It can provide testing of customer materials, including calcination tests and material characterisation.
Supporting parents & carers: fostering a work-life balance at Calix & Leilac
Calix and Leilac hosted a panel discussion, “Supporting Parents and Carers,” as part of their Inclusion and Diversity Series. The discussion explored challenges faced by parents and carers in balancing work and caregiving responsibilities, sharing personal experiences and strategies for creating a more equitable and family-friendly workplace.
Calix Investor Centre
The Calix Investor Centre provides information for Calix shareholders and those considering investing in Calix. It provides easy access to the Company’s reporting suite, including its financial results, annual and sustainability reports, and Corporate Governance Statement. It also provides access to a comprehensive suite of the Company’s corporate information, including its Constitution, charters, code of conduct, and company policies.
