Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) is pleased to provide the following update regarding the progress of its insurance claim following the recent fire incident (28 Oct 2019) at its research facility west of Melbourne.
- Initial insurance claim payment of $200,000 received
- Site clean-up proceeding, estimated to take another 4 weeks
- Proposed plant upgrade preparations & timeline updated to include remediation works
Further to the Company’s recent update (8 Nov 2019), which confirmed the formal acceptance of the insurance claim, an initial claim payment of $200,000 was received on the 9th of November.
The Company currently estimates the overall claim to be between $2.0 and $2.5 million, with further claim payments to be received over several tranches as remediation works proceed and firm quotes for the rectification work are received.
Importantly, the Company also previously announced its proposed plant upgrade program (9 Oct 2019) aimed at supporting its corporate strategy (4 Sept 2019) of delivering positive cashflows within 12 months.
The proposed upgrade program aims to deliver increased Coldry product capacity (min. 25,0000 tonnes per annum) plus char production capability (10,000 tonnes per annum plus), targeting higher-value markets with a potential to deliver earnings of up to $3.0 million per annum from the facility.
The rapid and supportive response of ECT’s insurer to the fire incident has allowed the Company to drive the recovery and remediation process and continue to advance its proposed upgrade program, while minimising delays to the original timeline.
ECT’s COO Jim Blackburn commented, “We anticipate the impact to our original upgrade timeline to be in the order of 6-8 weeks. We had originally targeted full production by August 2020. This target has been updated to October 2020 to cater for the recent disruption.”
Further updates on the recovery and upgrade activities will be provided in due course.
For further information, contact:
Glenn Fozard – Chairman firstname.lastname@example.org