Papyrus Australia Ltd (ASX: PPY) has announced a significant operational milestone, confirming the delivery of 200 Biodegradable Collar Keeper product samples to TBS Mining Solutions Pty Ltd. This achievement, referred to as Milestone 2 under their manufacturing and supply agreement, marks a crucial step in the commercialisation pathway for Papyrus. Papyrus Australia Ltd is an innovative company providing sustainable solutions using its patented and patent-pending technology to process agricultural waste, primarily from banana plantations, into high-quality alternatives to wood, paper, and plastic products. While Milestone 2 was completed after its initial target date of March 31, 2026, it was delivered today, May 21, 2026, well within the cure period of 90 days, which extends until June 29, 2026.
The delivered TBS Product Samples were meticulously produced utilising virgin agricultural waste pulp generated through Papyrus’s proprietary technology. This pulp was then converted into paperboard onto jumbo rolls via third-party manufacturing partners employing commercial-scale equipment. This successful production-scale conversion of Papyrus pulp into paperboard for customer qualification represents a vital step towards achieving full commercial supply under the TBS contract. It further demonstrates the Company’s capability to produce product samples using established commercial manufacturing processes.
The satisfaction of Milestone 2 now enables TBS Mining Solutions to commence formal product testing and larger-scale field trials, which are prerequisite steps for the acceptance phase, known as Milestone 3. Although Milestone 3, initially targeted for completion by April 30, 2026, has not yet been achieved, Papyrus anticipates meeting this milestone by July 29, 2026, also within its stipulated 90-day cure period. The company clarified that the delivery of these product samples does not, in itself, result in material revenue recognition, as revenue under the TBS Contract remains contingent on the successful achievement of Milestone 3. The Chair commented, “Delivering the 200 product samples required under Milestone 2 is another important step in our commitment to TBS and in demonstrating the scalability of our manufacturing pathway and further progress toward the commercialisation of our technology.”
