Clean TeQ Water has marked a milestone with its inaugural recurring revenue from ATA® technology and a 45% jump in quarterly customer receipts, underpinned by contract wins and project progress across global water and critical minerals markets.
- First long-term recurring revenue secured from ATA® polymer supply agreement
- Customer receipts rose 45% to $6.4 million in Q4 FY26
- PHOSPHIX® plant in Ireland outperforms phosphate removal targets
- DESALX® wastewater treatment project at Nyrstar Balen advancing on schedule
- Digitisation and AI process optimisation initiatives progressing
Recurring Revenue Breakthrough at Broken Hill
Clean TeQ Water (ASX:CNQ) has crossed a significant threshold, signing its first long-term Polymer Supply Agreement for its proprietary ATA® tailings dewatering technology at Broken Hill’s Rasp Mine. This deal, inked in July 2026 following the May award of the Design and Construct contract, establishes a five-year initial term with potential extension up to 20 years, creating Clean TeQ’s inaugural recurring revenue stream from ATA®. The revenue scales with tailings volumes processed, combining polymer reagent supply and licensing fees.
This development signals Clean TeQ’s strategic pivot from one-off EPC contracts towards annuity-style income, a move that could underpin more stable cash flows and valuation support. The Rasp Mine plant is targeted for practical completion in Q3 FY27, with detailed design and procurement well advanced. The agreement also supports the mine’s transition from solar drying to filtered tailings disposal, aligning with environmental and operational efficiencies.
Robust Sales Growth and Cash Flow Strength
Financially, Q4 FY26 was a strong quarter for Clean TeQ Water. Customer receipts surged 45% quarter-on-quarter to $6.4 million, driving positive net operating cash flow of $1.75 million. Cash reserves rose to $8.7 million at quarter-end, up from $6.8 million three months prior. This cash strength provides a solid runway to execute the expanding project portfolio.
The company’s net trade receivables and contract assets position remained positive at approximately $232,000, complemented by government grants and R&D tax incentives totalling $330,000. Operating costs increased modestly as projects progressed through procurement and commissioning phases, reflecting the natural cadence of project delivery.
European PHOSPHIX® Plant Exceeds Expectations
Clean TeQ’s PHOSPHIX® phosphate removal plant, delivered in partnership with Enva in Ireland, was completed on schedule and within budget during the quarter. Performance testing revealed phosphate concentrations below 0.1 mg/L, surpassing the contractual threshold of 1.0 mg/L by more than tenfold. The plant also exceeded hydraulic throughput targets, establishing Clean TeQ’s first commercial operating reference for PHOSPHIX® in Europe.
This success positions the company favourably to capitalise on tightening phosphate discharge regulations across the EU, potentially unlocking further opportunities in phosphate removal and recovery markets.
Progress on DESALX® and Lithium Projects
The A$10.4 million Phase 2 DESALX® contract at Nyrstar’s Balen zinc operations in Belgium moved from detailed engineering into full execution, with equipment procurement and installation on track. This project represents a complex industrial wastewater treatment application and a key reference point for DESALX® in heavy industry.
Meanwhile, the US$12.5 million Rio Tinto Rincon Lithium Project in Argentina advanced steadily, with detailed design nearing completion and manufacturing underway for critical components. The project leverages Clean TeQ’s Moving Bed Ion Exchange (MBIX) platform, underscoring the technology’s growing footprint in lithium refining where water efficiency is paramount.
Digitisation and AI Integration
Clean TeQ continues to prioritise digitisation, developing AI-assisted process optimisation and digital twin models across its technology platforms. This digital-first approach aims to enhance design accuracy, reduce commissioning risks, and improve operational performance over asset lifecycles. The strategy also facilitates remote monitoring and global scalability without the need for direct project delivery in every market.
Complementing this, pilot programs for ATA® across various tailings types and the NematiQ Graphene Membrane project targeting PFAS removal are progressing, indicating a broadening technology pipeline.
Bottom Line?
Clean TeQ Water’s pivot to recurring revenue and robust project execution sets the stage for FY27 to be a year of commercial conversion and scaling.
Questions in the middle?
- How quickly will Clean TeQ convert pilot and demonstration projects into commercial deployments?
- Can recurring revenue from ATA® technology become a material portion of total income?
- Will tightening environmental regulations in Europe accelerate PHOSPHIX® adoption?