At the time of this writing, SUVO, an Australian mineral company is trading at $0.04 per share. Much of the sales activity that SUVO’s CEO, Bojan Bogunovic had anticipated at the start of Q1 had come to fruition. Three months into 2024, SUVO has closed on five customers, with one of them being a leading pharmaceutical manufacturer in Europe. These deals represent 730 tonnes which total $0.63 million. Samples of SUVO’s staple product, hydrous kaolin, are circulating among 20 customers in the Asian Pacific, and many are on the verge of converting. Keeping this in mind, SUVO has also made significant traction with their low-carbon, geopolymer concrete , signing two MOUs back-to-back with PERMAcast and Dowsing Group.
In anticipation of accelerated sales activities in Asia, SUVO released a Share Purchase Plan on February 20th, 2024 selling their shares at a price of $0.03 with a cap of $1 million. The results were overwhelming— investors oversubscribed to the program in just three days. This shows the general excitement among existing investors over SUVO’s ability to capitalize on its existing opportunities, such as the Pittong kaolin plant, and rapidly developing low-carbon, geopolymer concrete. SUVO’s sales are up 14% just in the previous quarter from last year. Due to the outstanding demand from investors, SUVO’s board of directors agreed to increase the SPP by an additional $500,000 to a total of $1.5 million before costs. They’ve also shortened the application window to five days to minimize the impact of scalebacks. Investors, again did not hesitate on the new SPP. SUVO received an oversubscription of $2.663m in applications. In light of this positive response, the SUVO board resolved to increase the SPP from $1.5 million to $2 million, resulting in a scaleback of $0.663 million. This follows a successful capital raise of $2.5 million led by Canary Capital, bringing the total funding amount to $4.5 million. This gives SUVO ample room to ramp up its production at Pittong and fast-track the development of the low-carbon, geopolymer concrete IP.
The opportunity at 100% SUVO-owned Pittong operations is promising— with a nameplate capacity of 60,000 tonnes of kaolin per annum, SUVO is inching closer to profitability, with only 1,500 tonnes left to sell to break even across corporate. Canary Capital recently released a financial forecast for SUVO, predicting that it will reach 92% of its production capacity by FY26, or 55,000 tonnes. Paired with increased demand for premium kaolin that commands a higher price, it will position SUVO to generate ~$34 million by FY26. It is estimated by FY28, over $8 million will be profit. Much of the profit from the Pittong operations will go towards rapidly commercializing the low-carbon, geopolymer concrete IP which has limitless potential to scale. SUVO has already signed two MOUs with reputable and established construction companies to start testing the geopolymer concrete in different end uses like precast concrete and slip form concrete pavements. The companies’ breadth and influence across different customers will likely expedite the customer conversion process, and manifest into a robust, growing client base for SUVO to implement its low-carbon, geopolymer concrete as pre-packaged formulations. SUVO’s ambitious expansion plans in Asia, paired with its unique grasp on the environmental problems that plague the construction space makes it a company worth watching.