Scidev Ltd - SciDev delivers first quarter of positive cashflow
Scidev Ltd (ASX:SDV)

SciDev delivers first quarter of positive cashflow


What's happened?

SciDev Limited (ASX:SDV) have announced their March 2020 Quarterly results.

What are the key highlights?

  1. Record quarterly sales to customers of AUD$7.3m (up 80% on the December quarter), with cash receipts of AUD$5.8m (154% increase on the December quarter).
  2. First cash flow positive quarter generating AUD$0.7m, record sales in March AUD$4.8m.
  3. Notable orders included the MaxiFlox® trial order with Syncrude which marked SciDev's first entry into large Canadian oil sands market, and the MaxiFlox® trial order with Las Bambas, which marked SciDev's first entry into large South American copper market.
  4. Meeting the current oil & gas industry's needs for reduction in production costs, the company is fast tracking its patent-pending xPAM. This greatly improves the handling of dry chemistries with improved dispersion and fast hydration in water allowing for lower CAPEX, improved pad utilisation and a reduced overall cost per barrel production cost.
  5. A commercial trial has been secured in New Caledonia with a French multinational mining and metallurgy company which is expected to commence in Q4 FY2020 pending current travel restrictions.
  6. SciDev MaxiFlox® technology trials were successfully started and are ongoing at a large-scale gold project in PNG.
  7. Following lab-scale technical evaluations executed in the December quarter with a major Australian copper producer the company has received commitment to move to full-scale plant trials with MaxiFlox® chemistry. It is expected that field trials are expected to commence in Q4 FY2020.
  8. During the quarter, the company executed the supply, installation and commissioning of flocculant equipment under contract to Yancoal Australia’s Warkworth operation with final completion expected in early Q4 FY2020.
  9. SciDev continues to be active in other areas of the Bowen Basin, with continual support of a largescale CHPP which has been challenged with process water quality issues.
  10. SciDev has adopted a comprehensive COVID- 19 Workplace Policy to ensure the safety of staff, whilst continuing to deliver bespoke chemistry solutions and professional services in this challenging macroeconomic environment.

Managing Director's Summary

Lewis Utting

"The March quarter was a strong and active period for the company despite global challenges. Achieving a cashflow positive position reflects the growing maturity of the business delivered by several quarters of hard work and commitment from the SciDev team. Our record revenues reflect our business development efforts and a full quarter of revenues realised from contract wins and ProSol acquisition. Importantly, our continued contract wins highlight the commercial viability and utilisation of the SciDev offering and the substantial market opportunities. I would like to thank all the staff at SciDev for their efforts during the quarter and we look forward to continuing to deliver growth with improving cashflow realisation over the coming quarters."

Lewis Utting
Managing Director, Scidev Ltd

Download Announcement

View this announcement as well as our full profile on the company.

How do I invest?

Considering investing in Scidev Ltd?
Here's how to get started.
Low Cost Brokerage ASX Cheapest ASX Trading Platform
  1. 1

    Create account

    Open an account with an online broker of your choice. If you do not have an existing broker, consider Mawson Graham's A$9.50 flat fee platform.

    Sign up now »
  2. 2

    Search for ASX:SDV

    On your online investment platform search for the stock ticker code ASX:SDV to bring up the company's shares.

  3. 3

    Buy shares

    Place your order however you wish. If you need advice on buying or selling, you should seek the assistance of a full service financial adviser experienced in small cap equities.