Green360 Secures 19% Price Rise and 4,000 Tonne Take-or-Pay Contract with Boyer Paper Mill
Green360 Technologies has locked in a revised supply deal with Boyer Paper Mill that guarantees a minimum 4,000 tonne purchase in FY27 and lifts pricing by 19%, underpinning revenue of up to $2.9 million and supporting operational efficiencies at its Pittong plant.
- Minimum 4,000 tonne take-or-pay commitment for FY27
- Unit pricing increased by 19%, boosting contract value
- Annual revenue expected between $2.5 million and $2.9 million
- Contract supports stable production and operational efficiencies
- Aims for positive operating cash flow in FY27
Contractual Upgrade Anchors FY27 Revenue
Green360 Technologies (ASX:GT3) has secured a significant contractual upgrade with Boyer Paper Mill Ltd, one of its long-term customers. The revised agreement commits Boyer to a minimum take-or-pay volume of 4,000 tonnes over the 12 months ending 30 June 2027, with pricing lifted by 19% from previous terms. This deal is expected to generate annual revenues between $2.5 million and $2.9 million, providing a more predictable revenue base for Green360’s industrial minerals division.
Production Certainty to Drive Efficiencies
The binding minimum purchase commitment offers Green360 a stable production foundation at its Pittong facility in Victoria. This stability is crucial as the company seeks to capitalise on operational improvements and cost reductions implemented in the last quarter of FY26. Executive Chairman Aaron Banks highlighted that the agreement not only delivers improved pricing but also strengthens the earnings profile by ensuring a reliable production base. These factors combined are expected to support a return to positive operating cash flow in FY27.
Upside Potential from Volume Incentives
While the contract guarantees a minimum of 4,000 tonnes, it allows purchases exceeding 6,000 tonnes annually, with a tiered rebate of up to 8% for volumes above 5,000 tonnes. This structure incentivises higher sales volumes, potentially increasing revenue beyond the base estimate. The deal forms a cornerstone for Green360’s established kaolin business as it continues to scale its MKX metakaolin product portfolio, which targets the concrete industry’s urgent need for supplementary cementitious materials.
Positioning Amid Industry Supply Challenges
Green360’s MKX product platform addresses a shrinking supply of traditional supplementary cementitious materials like fly ash and slag, positioning the company strategically in a market facing imminent shortages. The Boyer contract provides a stable cash flow backdrop as Green360 advances its low-carbon building materials, a sector gaining momentum amid increasing environmental regulations. This agreement complements recent operational milestones and product launches, including the commercialisation of Eco-Clay and MKX Ultra Fine metakaolin variants.
Bottom Line?
Green360’s improved contract with Boyer Paper Mill sets a firmer financial footing for FY27, but the company’s ability to convert volume incentives into actual sales will be critical to sustaining momentum.
Questions in the middle?
- Will Green360 surpass the minimum 4,000 tonne purchase to fully realise volume rebates?
- How will operational efficiencies at Pittong translate into sustained positive cash flow?
- What progress will Green360 make in scaling its MKX product portfolio alongside this stable industrial minerals base?
