Chatham Rock Phosphate Details Major Milestones

22 November 2012

Chatham Rock Phosphate Details Major Milestones

A period of major milestones for Chatham Rock Phosphate has resulted in the company upping its shareholder base by a quarter, doubling its share price and reaching a market value of more than $50 million.

CRP announced an interim loss of $870,000 for the six months to 30 September, reflecting the high level of activity undertaken by the company that culminated in submitting a mining licence application at the end of September.

The company’s shares reached a new high price of 46c in October and have since settled around the 40c level, a market value of $52 million. During October shareholder numbers grew from 300 to 400. The peak market value of nearly $59 million compared with $8.5 million in January 2012 and $22 million before the issue of 30 million shares on 24 September to Royal Boskalis and Subsea Investments.
Chief executive Chris Castle said the market re-rating came hard on the heels of the publication of independent research by Edison Investment Research that stated CRP shares are worth $1.87 on an un-risked basis.

“It demonstrates the importance of independent research for investors. The market recognition of our project’s value was one of the more satisfying outcomes of the hard work put in by the team.”
Another key report was an assessment by the Institute of Economic Research that said New Zealanders would be $1.3 billion better off as a result of developing the CRP resource. At least $800 million of that will accrue to people with no ownership in CRP. It represents an annual wealth injection of $180 million.

“We have generated a lot of momentum for this project and remain on track to achieve our ultimate goal of going into production on or before New Year 2015.” Major tasks remaining are to:

Raise the last $US9.5 million needed to finance the work that will take us to the start of production

Refine our mining system design so we can start detailed designs early in 2013

Complete our environmental consent application to submit as soon as the EEZ regulations are complete, hopefully in the first half of 2013

Modify the Royal Boskalis ship that will mine the rock phosphate (planned for 2013-14)

Receive our mining licence and marine consents (expected during 2013).

CRP_interim_report_for_6_months_to_30_September_2012.pdf

CRP_interim_accounts_Sept_2012.xls

ENDS

© Scoop Media