Suvo Strategic Minerals Ltd (ASX:SUV) has notched up strong financial and operational full-year results for 2024, with its annual report pointing to a solid cash position, reduced capital expenditure, a focus on sustainability and promising partnerships in place.
The company’s strategic initiatives in sustainability, particularly in the commercialisation of low-carbon geopolymer concrete, are expected to drive further growth in 2025.
The company posted revenue of A$12.3 million, representing a A$1 million increase on the previous year’s A$11.3 million.
This growth was driven by the sale of 20,000 tonnes of hydrous kaolin to local and international markets.
Focus on low-carbon technology
Suvo progressed its low-carbon geopolymer concrete commercialisation strategy during the financial year.
In the second quarter, the company entered into an exclusive intellectual property licence agreement with Murdoch University for technology related to a geopolymer concrete batching plant and a low-carbon concrete formulation known as ‘Colliecrete’.
Geopolymer concrete is a sustainable alternative to traditional concrete, turning industrial by-products like fly ash and nickel slag into durable construction materials.
In the third quarter, Suvo signed a Joint Development Agreement (JDA) with PERMAcast, Western Australia’s leading supplier of precast and prestressed concrete.
The purpose of the JDA is to commercialise the low-carbon concrete technology with both companies working together to develop various formulations and assess their suitability for different applications.
Just after the reporting period, in August, Suvo delivered its first batch of low-carbon geopolymer concrete products for a major government infrastructure project.
The project involved precast blocks with compressive strengths of up to 35 megapascals, demonstrating the viability of Suvo’s technology for large-scale use.
Expanding international partnerships
Suvo’s focus on sustainability extends beyond Australia.
In September 2024, the company inked a Cooperation Agreement with Indonesia’s PT Huadi Bantaeng Industrial Park (PT HBIP) to explore the processing of slag by-products from nickel production into geopolymer cement and precast materials – a big technological breakthrough in industrial waste management.
This agreement is part of Suvo’s broader strategy to turn industrial waste into valuable construction materials.
In July this year, Suvo secured new purchase orders from its Chinese distributor Qingdao Minglang New Material Co Ltd for 1,568 tonnes of hydrous kaolin, valued at around A$1.15 million.
This marked a significant increase from the 596 tonnes purchased over the prior 18 months, underscoring growing demand for Suvo’s products in the region.
Cost optimisation
The company wrapped up a considerable capital expenditure at the company’s Pittong operation in 2024 and this marks a turning point.
With capital outflows substantially reduced, Suvo has been able to implement cost optimisation measures, particularly in the fourth quarter.
Capital expenditure for that last quarter was down to A$78,000, a considerable decrease as the company shifts its focus to operational efficiencies, cost control and a commitment to improving profitability.
Suvo also reduced corporate administrative overheads 23.5% to A$2.7 million.
At the close of the year, Suvo reported a cash balance of A$3.1 million.
In the post-reporting period Suvo also secured a 12-month extension on its debt funding of A$1 million, which was originally due for repayment on November 30.
The extension, announced in September, provides Suvo with enhanced financial flexibility as it progresses with its key initiatives.