Carbon Streaming Corporation Stock Price, News & Analysis

Carbon Streaming has announced a carbon credit streaming agreement for the Azuero Reforestation Project in Panama. Collaborating with Microsoft, Rubicon Carbon, and Ponterra, the project aims to restore 10,000 hectares of degraded land with over 75 native tree species. The project will generate 3.24 million carbon credits through 2052, with Carbon Streaming receiving 13.5% of the credits. Microsoft has committed to purchasing 100% of Carbon Streaming's credits from the project through 2040. The project will create over 300 jobs and enable over 100 local landholders to earn an income. Initial carbon credit issuance is expected in 2027. The project has been selected by Verra for its new SD VISta Nature Framework program, targeting multiple UN Sustainable Development Goals.

Carbon Streaming has updated the status of the Rimba Raya project's Verra account and its Forest Utilization Business License. On May 17, 2024, Verra temporarily suspended the registry account of InfiniteEARTH and its Indonesian subsidiary, PT InfiniteEARTH Nusantara, the project proponent of the Rimba Raya project. The suspension follows the Indonesian Government’s revocation of the Concession License. Verra has requested clarification from InfiniteEARTH, which must respond within seven days. On May 16, 2024, the State Administrative Court of Jakarta temporarily suspended the revocation, allowing project activities to continue until a final decision expected in June 2024. Carbon Streaming valued the Rimba Raya Stream at nil for the quarter ending March 31, 2024, due to the revocation. The company is exploring legal avenues to protect its investment and working with InfiniteEARTH and local partners to maintain the project.

Carbon Streaming provided an update on the Forest Utilization Business License for the Rimba Raya project. The Indonesian Ministry of Environment and Forestry (MOEF) revoked the Concession License held by PT Rimba Raya Conservation, the local partner. The revocation is based on allegations of unauthorized transfer, exceeding land area limits, and non-payment of taxes. PT Rimba has challenged this in the State Administrative Court of Jakarta. Carbon Streaming is assessing the situation, engaging with partners, and exploring legal options to protect its investments. A ruling is expected in June 2024.

Carbon Streaming announced its financial results for Q1 2024, highlighting key developments and figures.

The company posted a net loss of $35.8 million, a significant increase from a $1.0 million loss in Q1 2023, primarily due to a $33.1 million loss on revaluation of carbon credit streaming and royalty agreements.

Revenue from carbon credit sales increased to $0.4 million from $4 thousand in Q1 2023. The company ended the quarter with $49.0 million in cash and no debt.

Corporate restructuring efforts continued, resulting in a $1.4 million restructuring charge but also reducing ongoing operating expenses.

The revocation of the concession license at the Rimba Raya project led to a complete write-down of its value to $nil.

Despite setbacks, Carbon Streaming is focused on enhancing cash flow, cost-saving, and strategic investments in new projects like the Baccala Ranch Reforestation Stream.

Looking forward, the company aims to increase cash flow generation and continue its restructuring efforts to optimize operations.

Carbon Streaming has formed an independent committee in response to public allegations made by Nickel 28 Capital Corp. regarding the termination of certain executives. The Board has initiated a review process to confirm compliance with corporate governance policies and laws.