Phosphate miner CI Resources witnessed a bear market on the day of its Annual General Meeting, 23 November 2018. CII stock price slipped 1.176% to last trade at $1.680 today.
In the address to shareholders at company’s Annual General Meeting held today, CI Resources Chairman David Somerville stated that the management had undertaken an extensive review of the operations during 2018 to identify additional efficiencies that will allow the company to achieve product quality improvement, bring down costs, and meet regulatory obligations.
For the year ended 30 June 2018, the company delivered the net profit after tax of $28.41 million, higher than the previous year’s profit of $20.58 million. Earnings per share were 18.30 cents in FY18, up 2.75% from FY17. Whereas, the dividend declared for Fiscal 2018 was 10.0 cents per share.
Mr. Somerville said based upon company’s ongoing estimation and review of indicated and inferred resources and other commercial parameters it is reasonable to expect the sustainability of viable mining operations on Christmas Island through to the late 2020s.
However, CI Resources’ subsidiary Phosphate Resources Limited has failed to acquire permission of former Minister for the Environment and Energy to undertake an exploration drilling program at Christmas Island. The application rejected by the ministry aims at the evaluation of further economic resources including pre-clearance program for a total ~6.8 hectares on historical drill lines on Christmas Island. If the application had gone through, the company would have maintained the mining jobs and investment beyond 2030.
Over the past two years, CI Resources has witnessed the challenging market conditions in its mining operations. But still, the company remains optimistic about its future outlook.
Mr. Somerville stated that the company aims to provide the strong return to its shareholders on the back of its diversified business portfolio and robust balance sheet. Mr. Somerville further confirmed that the company is continuing to consider additional phosphate mining opportunities, with the aim of growing its business and range of products into the future.
CI Resources Limited (ASX: CII) is primarily into phosphate mining, processing and distribution business with flagship phosphate mine at Christmas Island. It also operates a fuel business, a facilities management business, and a palm oil plantation. Mining and Farming are the two segments in which company operates. The Mining operating segment primarily involves mining, processing, and sale of phosphate rock, phosphate dust, and chalk. The Farming operating segment primarily involves oil palm cultivation and palm oil processing.