Fertilizer mine developer, Centrex Metals has secured the major environmental approval to commence mining and procession operations at Queensland based phosphate project Ardmore.
In the market release dated 10 December 2018, Centrex Metals Limited (ASX: CXM) announced that the Queensland Department of Environment and Science had granted the environmental permit to the company. The approval of environmental authority was pre-requisite for the company to start-up processing and mining operations at Ardmore Phosphate Rock project.
As per the company’s information, the permit has been granted in respect of mining lease ML 5542 located in the Ardmore project, Northwest Queensland. With authority to progress its proposed start-up operations at this mining lease, the company expects to produce circa 30,000 wet tonnes of high-grade phosphate rock concentrate. Resultantly, the company forecasts to provide 5,000 to 6,000 wet tonne of phosphate rock concentrate for shipment in the second half of 2019.
Centrex’s Chairman Mr. David Klingberg told that the primary focus of the company is to progress the Ardmore Phosphate Rock Project into production and revenue generation phase.
He added that the trial concentrates' shipments scheduled for mid-2019 aim to support the establishment of long-term offtake agreements which will underpin project funding.
Centrex Metals continues to build a strong relationship with strategic partners and other funding providers, who can potentially provide debt and equity funds to Centrex to ensure continuity in and between Ardmore start-up and full-scale production phases.
According to the DFS results released in October this year, Ardmore is a high-quality asset with a relatively low capital requirement, low technical risk and the potential to provide stable returns. To maintain project continuity and impetus, a turn-key contract was recently awarded to the company to construct a start-up 70tph modular wet processing plant targeted to produce 30,000 tonnes of concentrate and provide customers trial shipments in mid-2019.
Commenting on this contract, Centrex Metals told that CDE Global is currently fabricating a 70 tonnes per hour modular start-up wet processing plant for Ardmore.
Moreover, the company has inked a Memorandum of Understanding with Indian Gujarat State Fertilizers & Chemical Limited for 40% of off-take and contracts being negotiated for the 2019 trial shipments. Whereas, the full-scale production is targeted for 2021.
Incorporated in 2001, Centrex Metals Limited is currently engaged in the development of Phosphate, Potash and Base Metals. For the year ended 30 June 2018, the company reported $1.1 million loss, mainly reflecting corporate overheads. At the end of September 2018, the company reported cash and cash equivalents of $11.3 million.
Despite obtaining the environmental regulatory approval for Ardmore, Centrex traded at lower levels today. The stock has plunged 4.348% to last trade at $0.110 on 10 December 2018. But, looking to the past performance of the company, it can be seen that CXM’s stock price has surged 36.90% over the past one year.
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