CXM - Centrex Limited

[greggles]

Just noticed that the CXM share price jumped up around 26% today. I took a look at Quarterly Activities Report released on Friday and noticed that the company has $17.5 million cash in the bank and no debt. It appears to be burning about $5 million a year at its current burn rate.

Its only active project appears to be the Ardmore Phosphate Rock Project in Queensland. The mining lease for this project was recently renewed for another 21 years. A Mineral Resource update released in December increased the total Mineral Resource to 14.2 million tonnes at 28.7% P2O5 (using 19% P2O5 cut-off).

The company claims that Ardmore is one of the few remaining undeveloped high-grade phosphate rock deposits in the world.

Not sure what to make of this one at the moment, but if they build a mine and get into production it could be a winner.

 

[Craton]

Drought and low prices of CXM products has seen the SP take a dive.
Taking a punt on an improvement in Jan 2020 and beyond.

 

[Craton]

Sticking with this stock for the Feb 202 Tipping Comp. Same reason as above but more so, QLD Ardmore project appeals.

 

[Craton]

Sticking with CXM again for the Mar 2020 Tipping Comp. With the coronavirus market "adjustment" around the globe the SP hasn't tanked as much as other stocks, must be a good sign.

 

[Craton]

Hmm, seems I've followed/tipped this stock before...

As per the recent announcement: Rights Issue

Centrex Metals Limited (ASX:CXM)
Results of Rights Issue
Centrex Metals Limited is pleased to advise that the Non-Renounceable Rights issue announced on 20 October 2020 (Offer) has closed and raised $638,720. In view of the fact that the Company’s major shareholder was precluded from an entitlement under the Offer the result is considered satisfactory.

 

[greggles]

CXM share price syrocketing this morning after the company strikes a deal with Samsung to supply fertiliser from the Ardmore Phosphate Project. 20% of annual production is an impressive deal. Management has done well here.

2022 is looking like is will be a good year for CXM. The share price is up around 180% today.

Ardmore Phosphate Project – Phosphate Marketing Term Sheet signed with Samsung C&T Corporation

Centrex Metals Limited (ASX: CXM) (Company) is pleased to announce that its 100% owned subsidiary and ESG-sustainable Agriflex Pty Ltd (Agriflex) has executed a conditional Term Sheet (Term Sheet) with Samsung C&T Corporation (Samsung).

Samsung is one of the world’s largest traders in fertilisers. It has representatives in 73 offices in 43 countries around the world.

The Term Sheet outlines Agriflex’s appointment of Samsung as its sole and exclusive Marketing Representative for sales into Korea, Japan, Indonesia, India and Mexico.

The initial term of the Term Sheet is for the first 3 years of production from Agriflex’s planned 800,000 tonnes per annum at the Ardmore Phosphate Project.

Samsung will provide Agriflex with marketing services for sales of an annual quantity equal to the lesser of 20% of the product from the Project or 160,000MT of the product. In addition, Samsung may also assist the Company with sales of any additional quantity of product not taken by other off takers.

The price to be paid by Samsung will be the market netback price (defined as the actual sales price minus direct costs and a marketing service fee).

The conditions precedent for the agreement include Agriflex’s final board approval to proceed with the construction of the Ardmore Phosphate Project’s 800ktpa plant, Samsung’s internal corporate approvals (in its absolute discretion), Agriflex’s financial close in relation to the financing arrangements for the Project and the commencement of production from the 800ktpa plant.

The Term Sheet also contains further terms and clauses customary for an agreement of this type.

The parties intend to enter into a more detailed marketing services agreement which will replace and expand upon the terms and conditions set out in the Term Sheet. Centrex’s Managing Director Robert Mencel said “We are pleased to do business with Samsung, one of the Worlds’ largest fertiliser traders. The signing of the Term Sheet reflects the strong international interest in the project and its future production.”

Centrex is also in advanced discussions with a number of other Australian and international potential customers and will keep the market informed as these develop.

 

[System]

On December 16th, 2021, Centrex Metals Limited changed its name to Centrex Limited.

 

[frugal.rock]

Possibly have started moving final product to port? (My guess only)

 

[frugal.rock]

Chart update only

 

[rcw1]

Good morning,
Hello frugal.rock. Couple announcements published Monday and yesterday (23/11/22).

Of note, the following article written in the Townsville Daily Bulletin today, via New Corp Media, linked to Mondays company annoucement. This is of interest to rcw1. Not holding CXM at this time. Comments made by Port of Townsville Chief Operating Officer Drew Penny, would have been most welcomed by CXM shareholders!!!


International uncertainty caused by Russia’s war with Ukraine has prompted the first exports of phosphate rock from Townsville.

Tony Raggatt
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@anthonyraggatt

2 min read
November 24, 2022 - 6:00AM
Townsville Bulletin
https://www.couriermail.com.au/news.../509704c5e1d83a734aa7894d00ad05df#share-tools

The phosphate rock processing plant established by Centrex at Ardmore.

Vladimir Putin’s war on Ukraine is helping to establish a new industry in North Queensland and end Australia’s and New Zealand’s reliance on imported phosphate. ASX-listed Centrex has announced its first international shipment of phosphate rock from Townsville port to New Zealand which closely follows a shipment to an Australian customer. Supply chain disruption caused by Russia, which with Morocco is a key fertiliser supplier, has introduced uncertainty and seen phosphate rock prices triple to more than US$300 a tonne.
Centrex is the first of multiple players looking to capitalise on the big phosphate resources in north west Queensland and the Northern Territory formed by marine animals which died when an ancient inland sea dried up.

The company’s demonstration plant has the capacity to produce up to 240,000 tonnes of phosphate rock a year and is a precursor to a larger 800,000 tonnes per annum plant. In a statement, Centrex CEO Robert Mencel said Australia and New Zealand imported a million tonnes of high-grade phosphate rock each year, mainly from Africa.

Centrex CEO Robert Mencel stands in front of the phosphate rock processing plants at Ardmore near Mount Isa.

“Like Australia, New Zealand requires surety of supply because domestic food security is not
something to be gambled with,” Mr Mencel said. The first shipment of 5000 tonnes left Townsville last weekend to New Zealand agricultural cooperative Ravensdown.

Ravensdown will use the phosphate rock to make fertiliser like super phosphate. Ravensdown supply chain general manager Mike Whitty said initial assessments of the rock had been promising. “We believe Ardmore phosphate rock has the potential to form a part of Ravensdown’s nutrient offering, helping to firm up local supply of high-quality superphosphate for New Zealand farmers and growers,” Mr Whitty said. “If the last few years have proven anything, it’s the value of having options. “As a co-operative, it’s our job to identify and manage those risks on behalf of our farmer and grower shareholders. We’re committed to ensuring they have ongoing access to the essential nutrients needed to run their businesses.”

Port of Townsville Chief Operating Officer Drew Penny said Centrex’s first bulk shipment of phosphate from the port last month was the first bulk handling in Australia. “Centrex’s enterprise has the potential to become both an import replacement business and a new export business for Australia,” Mr Penny said. “The Port of Townsville has a two common user berths that are suited to bulk export of mining and mineral products.”

Mr Mencel said soaring fertiliser prices brought on by supply chain disruptions had become a major concern to the domestic agricultural sector. He said most of the phosphate rock to be mined at Ardmore would be for the commercial fertiliser production industry.

The company is in discussions with other potential fertiliser customers and has negotiated first right for offtake agreements for all of the production for the first three years of the project.

Chart update only

View attachment 146252

 

[noirua]

Centrex (ASX:CXM) establishes transport and logistics agreement with Aurizon (ASX:AZJ)​

Centrex (ASX:CXM) establishes transport and logistics agreement with Aurizon (ASX:AZJ)

Centrex (ASX:CXM) has signed on Aurizon (ASX:AZL) as its partner to transport and store phosphate rock from the CXM Ardmore project in North West Queensland.

themarketherald.com.au

Centrex (CXM) has signed on Aurizon (AZL) as its partner to transport and store phosphate rock from the CXM Ardmore project in North West Queensland.

Centrex subsidiary Agriflex and Aurizon have established a transport and logistics agreement, replacing a short-term agreement executed in May last year, under which Aurizon will be the exclusive supplier of containerised logistics solutions from the Ardmore mine to the Townsville port.

The agreement starts this month and provides Agriflex logistics security for four years as it ramps up the Ardmore operation.

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