Papyrus Australia Secures $4.2M Contract, Nears R&D Facility Completion

Steady Progress Towards Commercialisation

Papyrus Australia Ltd (ASX – PPY) has reported solid operational and financial progress in the quarter ending December 2025, marking a clear transition from technology development to commercial production. The company is on track to begin manufacturing its biodegradable Collar Keeper® product by the fourth quarter of fiscal year 2026, following the signing of a significant supply contract with TBS Mining Solutions.

Strategic Contract with TBS Mining Solutions

The exclusive 3.5-year agreement with TBS Mining Solutions, a subsidiary of Aquirian Limited, is a pivotal commercial milestone. It formalises Papyrus’s role as the sole global producer of the fibre-based Collar Keeper®, with expected revenues of approximately $4.2 million over the contract term. This deal validates earlier successful fibre board testing and sets a defined revenue outlook, providing investors with greater clarity on the company’s commercial trajectory.

Adelaide Facility Nears Operational Status

Parallel to contract execution, Papyrus has made substantial headway on its Adelaide Rapid Prototyping and R&D Facility. Installation and commissioning of the moulding line and prototype pulp preparation system are nearing completion, with full operational capability anticipated in January 2026. This facility will be critical for producing consistent fibre, validating new moulded products, and supporting customer demonstrations, effectively accelerating the company’s commercialisation efforts.

Financial Strengthening and Risk Reduction

Financially, Papyrus has bolstered its position through a combination of option exercises by its Executive Chair, investor loans totaling $350,000, and a $510,000 tax refund under the Research and Development Tax Incentive program. These funds have been directed towards facility development, equipment procurement for the TBS contract, and ongoing corporate expenses. Additionally, the discontinuation of legal proceedings against the company has removed a layer of uncertainty, allowing management to focus fully on operational priorities.

Looking Ahead

Entering 2026, Papyrus Australia is positioned with positive momentum, a clearer commercial pathway, and enhanced operational capacity. The company’s disciplined execution approach will be critical as it moves towards revenue generation and broader market engagement. Investors will be watching closely for the commencement of production in Q4 FY26 and the subsequent revenue flow from the TBS contract.