A mineral exploration company, Centrex Metals Limited (ASX: CXM) on 14 May 2019 announced that it has bagged its 2nd sales contract for superior-quality phosphate rock concentrate from its Ardmore Project situated in north-west Queensland.
Previously, the top New Zealand-based nutrient seller to farmers and growers, Ballance Agri-Nutrients (“Ballance”) had trailed four hundred wet tonnes of run-of-mine ore from Ardmore for manufacturing single superphosphate. Now, Ballance has agreed with the company to further acquire five thousand wet tonnes of concentrate which will be made as a part of the pilot production process which is projected to start this year.
Under the contract, Ballance will be provided with 5,000 wet metric tonnes of phosphate rock that will be trialed with the current Ballance import blend. The concentrate trial shipment will be produced using the 70tph modular wet processing plant. The modular plant is easily upgradable to 140tph for the planned full-scale processes designed at 800k wet tonnes per annum.
At present, the company is progressing on all other required activities to advance the project to commence mining and processing in 2019. The activities include:
- Arranging logistics
- Concentrate sales
- Other operational activities
The company is under discussion with the selected number of potential long-term offtake customers regarding taking trial shipments.
Recently, on 30 April 2019, the company has completed the fabrication and trial assembly of the Start-Up Plant. The Start-Up Plant is being shipped from the UK to Australia and is expected to reach the site at Ardmore in the month of June 2019.
In the March 2019 quarter, the company completed the Definitive Feasibility Study (DFS) optimization for the Ardmore Phosphate Rock Project. As a result of design changes and revised equipment selection, there was a reduction of 13% in the pre-production capital costs to US$49 million.
The company appointed Mr Simon Slesarewich as CEO, effective from 3 April 2019. On 10 May 2019, the company announced the appointment of Ms Christine Manuel as the Company Secretary effective from 10 May 2019, replacing Mr Stephane Gauducheau.
During the March 2019 quarter, there was a net cash outflow of A$1.372 million from the operating activities of the company. The primary drivers of cash outflow were the cash payment made for exploration and evaluation, staff cost along with administration and corporate cost.
There was a net cash outflow of A$2.777 million from the investing activities of the company. Here, the primary driver of cash outflow was the payment made to acquire plant, property and equipment. By the end of March 2019, the company had net cash and cash equivalent of A$5.623 million.
The company expects that in June 2019, the estimated cash outflow will be around A$1.930.
The shares of Centrex Metals Limited are trading at A$0.110 (as at AEST: 12:40 PM, 15 May 2019), and remain unchanged as compared to its previous day’s closing price. Centrex Metals Limited holds a market capitalization of A$34.73 million and approximately 315.69 million outstanding shares.
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