Green360 Technologies has moved its MKX metakaolin product from testing into commercial supply, securing a binding agreement with Holcim Australia while cutting annualised fixed cash costs by about $1.6 million. The progress comes against a $4.25 million FY2026 loss, $3.93 million in operating cash outflows and an explicit need to prove the business can scale before its cash buffer runs down.
- Binding Holcim agreement for up to 4,800 tonnes of MKX-CC annually
- Commercial production through Calix toll-treatment capacity of up to 30,000 tonnes per year
- FY2026 revenue fell to $11.46 million and net loss widened to $4.25 million
- Approximately $1.6 million in annualised fixed cash costs removed
- Auditor flagged going concern, exploration expenditure and Pittong impairment as key audit matters
MKX reaches commercial supply
Green360 Technologies Limited (ASX:GT3) has spent the year trying to turn a kaolin miner into something more ambitious: a domestic supplier of lower-carbon concrete materials. The first commercial proof point is now on the books. Green360 has secured a binding 12-month supply agreement with Holcim Australia for up to 4,800 tonnes a year of MKX-CC, its calcined-clay cement replacement, at a fixed price per tonne. The price itself is not disclosed.
The agreement followed commercial production through a toll-treatment arrangement with Calix Limited (ASX:CXL), which gives Green360 access to up to 30,000 tonnes a year of calcining capacity at Bacchus Marsh without first building its own plant. More than 600 tonnes of finished MKX was manufactured for large-scale trials during FY2026, and the product has been moved through standard pneumatic-tanker logistics to concrete batching plants across Melbourne.
The field record is more tangible than a laboratory result. Green360 says more than 3,500 cubic metres of concrete containing MKX has been placed in major Victorian infrastructure and commercial projects, including the Eastern Freeway Extension, Suburban Rail Loop and Melbourne Airport Business Park. That does not yet establish a large recurring market, but it does show the product has crossed several practical hurdles: production, transport and use in substantial concrete pours.
Losses remain the immediate financial reality
The commercial progress sits beside a much less flattering set of numbers. FY2026 revenue fell to $11.46 million from $13.28 million, while the group recorded a $4.25 million net loss, compared with a $4.05 million loss a year earlier. Gross loss from operations was $381,007, after revenue was affected by weaker demand from a large domestic customer during the middle of the year.
Cash flow was also negative: operations consumed $3.93 million, although an $8.5 million share issue helped lift cash at year-end to $3.20 million from $1.82 million. Green360 says it is not yet generating positive group-level cash flow and may require further equity or debt funding in the short, medium or long term. The directors nevertheless prepared the accounts on a going-concern basis, relying on a forecast that indicates sufficient working capital and other funds through at least 30 September 2027.
Cost reductions are aimed at FY2027
Management has tried to improve the starting position for the new financial year. It removed approximately $1.6 million in annualised fixed cash costs, revised product pricing from 1 July 2026 and placed a large customer on a take-or-pay arrangement. The report says the benefits of those decisions are expected to emerge over FY2027, rather than in the year just reported.
That timing matters. The Holcim agreement provides a foothold, but “up to” 4,800 tonnes is a ceiling rather than a guaranteed volume, and the undisclosed price makes its contribution to revenue and margin impossible to assess from the annual report alone. Green360’s next test is therefore not simply whether MKX can be produced, but whether customer demand can fill the available Calix capacity at commercially attractive economics.
Dedicated Pittong plant remains a later-stage decision
Green360 intends to use the Calix arrangement to develop demand before committing capital to a purpose-built calcining facility at Pittong. The company describes that as a stage-gated approach: establish the market with existing infrastructure, then pursue the cost efficiencies of owned production once demand is sufficient.
The strategy limits the need for immediate construction spending, but it leaves execution and funding questions unresolved. RSM Australia Partners issued an unmodified audit opinion, while identifying going concern, $3.36 million of capitalised exploration and mineral-interest expenditure, and the impairment assessment for the Pittong operation as key audit matters. Management identified impairment indicators at Pittong but concluded no impairment was required, based on a value-in-use model using a 15.6% pre-tax discount rate.
Bottom Line?
Green360 now has a credible commercial entry point for MKX, but FY2027 must show that Holcim supply, cost reductions and wider customer conversion can narrow the cash deficit before a larger plant becomes necessary.
Questions in the middle?
- How much of Holcim’s up-to-4,800-tonne commitment will convert into actual FY2027 deliveries and revenue?
- Can the Calix toll-treatment model generate attractive margins before Green360 commits capital to a Pittong facility?
- Will the $1.6 million cost reduction and revised kaolin pricing materially reduce operating cash burn, or will additional funding still be required?