On 8 February 2019, Centrex Metals Limited (ASX: CXM) has announced the resignation of Mr. Ben Hammond from his role as Managing Director (MD) and CEO. Although, Mr. Hammond has stepped down from the position of MD, he will continue as CEO until his successor has been appointed or, at the latest, at the end of April 2019.
During the transitional period Centrex Director, Mr. Chris Indermaur, will be assisting in the Executive duties of the Company. As per the announcement, the Board is going to immediately start a rigorous selection process to find the right candidate to lead Centrex into production at Ardmore and further develop its other assets.
In January 2019, the company appointed Mr. Stephane Gauducheau as Company Secretary effective from 4 January 2019. Recently, the company published its Quarterly Activities Report for the December quarter. During the December quarter, the company maintains a healthy balance sheet with A$9.8 million in cash reserves as at 31st December 2018 and no debt.
The company’s projects include Ardmore Phosphate Rock Project (located in Queensland), Oxley Potash Project (located in Western Australia) and Goulburn base metals Project (located in New South Wales). Recently, Centrex Metals entered into a contract with FREE Eyre Limited for the sale of its Port Spencer land holding which is expected to complete in late February. The land sale completes the exit of its iron ore interests and provides additional funds to support the company’s ongoing development of the Company’s flagship Ardmore Phosphate Rock Project.
The Ardmore Project is the company’s flagship development, with a start-up operation currently in execution phase for first shipments in 2019. The project is having major sea freight advantage over existing suppliers to the major Asia Pacific markets.
In December 2018, the Queensland Department of Environment and Science issued an environmental permit for the proposed start-up mining and processing operation of the Ardmore Project. The issued environmental authority for mining lease ML 5542 will enable the Company to progress its proposed start-up operations. The company is developing a pipeline of phosphate exploration projects both proximal to Ardmore in the Georgina Basin and regionally in Australia. During the December quarter, the company undertook no exploration activities at its Goulburn Zinc Project.
During FY 2018, the company transitioned toward being an operator in the fertiliser market. Currently, the company is seeking to build its project portfolio with advanced assets of a similar scale and nature to Ardmore. For FY 2018, the company reported a loss of $1.1 million which was largely comprised of corporate overheads net of interest income. For the December quarter, the company reported the cash flow from operating activities of A$1,503k. As at 31 December 2018, the company had cash and cash equivalent of A$9,772k.
CXM’s shares traded at $0.120 with a market capitalization of circa $36.3 million as on 8 February 2019. It has a 52-week high of $0.170 and a 52-week low of $0.100.
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