Phoslock Narrows Cash Outflows as Production Ramps Up Despite Legal Overhang

Phoslock Environmental Technologies Limited ( (AU:PET) ) has shared an update.

Phoslock Environmental Technologies reported a cash balance of $4.3 million at 31 March 2026, with a quarterly net cash outflow of $792,000 and an operating cash deficit of $776,000, an improvement on the prior corresponding period. Sales receipts fell to $466,000, but lower operating outlays, including partial reimbursement of legal costs by AXA Insurance, helped narrow the operating cash deficit.

Operationally, the company sold 385 tonnes of product, broadly in line with last year, with Brazil remaining the largest market at 60% of volumes, followed by Europe, Australia and the U.S. The factory, reopened in January after years of closure, faced early equipment failures but by late March was running each weekday near its 14.7‑tonne daily capacity, while product inventory reached 1,151 tonnes.

Phoslock is advancing R&D in China, developing a 10% lanthanum product with promising performance characteristics and preparing a patent application alongside plans for bulk sample testing and in‑lake trials. On the corporate front, the company continues to manage legacy legal issues, including a potential shareholder class action that remains in discovery, with mediation scheduled for June, underscoring ongoing legal overhang even as operational momentum builds.

More about Phoslock Environmental Technologies Limited

Phoslock Environmental Technologies Limited is an ASX-listed company specialising in water treatment products designed to remediate polluted lakes, rivers, canals and drinking water reservoirs. Its market focus is on environmental remediation solutions for freshwater systems across multiple international regions, including Brazil, Europe, Australia and the United States.

Average Trading Volume: 704,061

Technical Sentiment Signal: Strong Sell

Current Market Cap: A$6.87M

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