How Clean TeQ Water’s Go2Lithium Control Could Spark Growth in FY26

Financial Performance and Strategic Positioning

Clean TeQ Water Limited has reported a preliminary final result for the year ended 30 June 2025, showing a modest improvement in its financial position. The company narrowed its loss after tax from $3.2 million in FY24 to $2.8 million in FY25, while maintaining revenue at around $11.5 million. This performance reflects a period of operational delays that deferred some revenue recognition but also highlights the company’s disciplined cost management and improved gross margins.

Despite the ongoing challenges, Clean TeQ’s management remains confident in the company’s ability to convert its robust project pipeline into revenue growth and profitability in the coming year.

Expansion of Control in Go2Lithium Inc

A significant development during the year was Clean TeQ’s increase in its interest in Go2Lithium Inc, a Canadian joint venture focused on lithium extraction technologies. The company raised its stake from 50% to 60%, thereby gaining control. This strategic move aligns with Clean TeQ’s focus on critical metals recovery, particularly lithium, which is essential for battery manufacturing and the global clean energy transition.

The acquisition included a stepped business combination accounting treatment, with the fair value of the previously held equity interest assessed as equal to its carrying value. The consolidation of Go2Lithium is expected to enhance Clean TeQ’s market position in lithium extraction and processing technologies.

Global Project Progress and Market Opportunities

Clean TeQ has advanced several key projects across multiple geographies, including Europe, Australia, China, the Middle East, and South Africa. Notable contracts secured include –

• PHOSPHIX® phosphate removal plant in Ireland with ENVA, valued at approximately €7 million, targeting stringent EU environmental regulations.
• CLEAN-IX® uranium recovery system commissioned at Heathgate Resources in South Australia, supporting clean energy initiatives.
• Townsville Recycled Water Treatment Facility in Queensland, nearing final performance testing stages.
• HIROX® high-recovery reverse osmosis plant in Iraq, marking the first commercial deployment in the Middle East.
• DESALX® industrial wastewater treatment plant design contract in Belgium for Nyrstar.
• BIONEX™ nitrate removal plant in Inner Mongolia, China, addressing environmental challenges in coal mining regions.

These projects demonstrate Clean TeQ’s ability to deploy its proprietary technologies in diverse industrial and municipal water treatment applications, while also addressing critical metals recovery and mine tailings management.

Capital Raising and Financial Position

To support its growth and project execution, Clean TeQ raised approximately $808,000 through a combination of placements and a share purchase plan, issuing shares and options at $0.31 per share. Additionally, the company issued $1 million in convertible notes and secured a $2 million term loan facility with Causeway Wholesale Private Debt Master Fund, providing financial flexibility.

As at 30 June 2025, the company held cash and deposits totaling approximately $1.76 million, down from $1.93 million the previous year, reflecting the timing gap between project activity and receivables collection. The company’s directors have expressed confidence in having sufficient liquidity and funding to meet operational commitments for at least the next 12 months.

Governance and Leadership Updates

The board welcomed a new non-executive director, Daniel Pfeffer, appointed post-year end on 16 July 2025. The leadership team continues to focus on executing the company’s strategy of delivering high-value, sustainable water and resource recovery solutions aligned with global environmental regulations and the energy transition.

Clean TeQ Water also reported no dividends declared or paid during the year, consistent with its focus on reinvesting in growth and technology commercialisation.