Key Highlights

  • Papyrus Australia Ltd (ASX:PPY) completed production of the second batch of board samples required under its TBS Mining Solutions contract.
  • The company expanded pulp production capacity at its Adelaide Rapid Prototyping & R&D Facility to support initial commercial production requirements.
  • Papyrus filed a provisional Patent application relating to moulded fibre product Manufacturing with fibre reinforcement elements.
  • The company secured an additional $500,000 in funding facilities to support commercialisation activities and Working Capital requirements.

Papyrus Australia Ltd (ASX:PPY) is developing cellulosic fibre technology and progressing commercial applications through product development and customer engagement programs. The company’s shares were trading at AUD 0.009 on the latest available trading update. Papyrus reported progress across its commercialisation activities during August 2026, including production of additional TBS contract samples, expansion of Research and Development capability and intellectual property activities.

TBS Contract Product Development Progress

Papyrus Australia continued progressing its contract with TBS Mining Solutions Pty Ltd, a Subsidiary of Aquirian Limited (ASX:AQN), during August 2026.

The company agreed with TBS to revise project milestone timing to allow additional product samples to be produced and delivered for testing and acceptance.

During the month, Papyrus completed production of board for the second batch of TBS samples through a second production-scale trial. The trial was conducted with manufacturing partners and incorporated learnings from the initial production-scale run to refine product and board specifications.

Papyrus representatives participated in the production process and worked with manufacturing partners to optimise the conversion of Papyrus pulp into paperboard suitable for the TBS application.

Adelaide R&D Facility Expansion

Papyrus increased pulp production capability at its Adelaide Rapid Prototyping & R&D Facility during August.

The expanded facility capacity is intended to support initial commercial production requirements for TBS boards while allowing the company to continue product development and research activities.

The facility continues to generate technical insights supporting development of Papyrus’ cellulosic fibre technology platform.

Intellectual Property Development

Papyrus filed a provisional patent application during August titled “Method of Manufacturing Moulded Fibre Product With Fibre Reinforcement Elements”.

The application, filed on 21 August 2026, relates to developments generated through the company’s R&D activities and expands its intellectual property portfolio.

The patent application establishes a priority date and provides a 12-month period during which Papyrus can continue research and development activities while evaluating future commercialisation pathways.

The company stated that the technology may have potential applications across structural and lightweight moulded fibre products, including unmanned aerial vehicle (UAV) airframes, subject to further research, development and validation.

Funding Position and Financial Activities

Papyrus secured an additional $500,000 in funding facilities during August 2026 through four Unsecured Loan agreements with professional and sophisticated investors.

Subject to Shareholder approval at the 2026 Annual General Meeting, the outstanding loan amounts, including accrued interest, are expected to convert into Tranche 2 Unsecured Convertible Notes.

The company stated that funds will be used to progress commercialisation activities, support delivery of the TBS contract and provide working capital.

The August Appendix 4C report showed net cash used in Operating Activities of $204,000 during the month. Cash and cash equivalents at the end of August were reported at $421,000, with unused financing facilities of $572,000 available.

Commercialisation Roadmap

Papyrus stated that the August period represented continued movement from technology development towards early-stage commercialisation.

The company continues working with partners to progress product acceptance processes and evaluate pathways towards commercial supply.

The TBS program remains a key commercialisation activity, with additional sample production and testing forming part of the ongoing development process.

Key Takeaways

Papyrus Australia continues to advance its commercialisation program through product development, customer engagement and intellectual property activities. Completion of the second TBS sample production batch, expansion of R&D capability and additional funding facilities provide support for ongoing development activities. Future progress will depend on product testing outcomes, customer acceptance and the company’s ability to transition technology development into commercial supply.