- Release Date: 27/11/15 08:30
- Summary: HALFYR: CRP: Interim report for the 6 months to 30 September 2015
- Price Sensitive: No
- Download Document 8.15KB
CRP 27/11/2015 08:30 HALFYR PRICE SENSITIVE REL: 0830 HRS Chatham Rock Phosphate Limited HALFYR: CRP: Interim report for the 6 months to 30 September 2015 Interim report for the 6 months to 30 September 2015 Financial Result Your directors submit the unaudited financial statements of Chatham Rock Phosphate Limited (CRP) for the six months to 30 September 2015. The trading result for the period was a loss of $398,076 (2014 loss of $1,870,507). An analysis of the result is provided in the table attached. The deficit for the six months to 30 September 2015 reflected significantly reduced operating costs. These costs continue to reduce. Operations As reported recently in our August and October announcements, and despite the reduced size of the team CRP is very actively moving on a number of fronts. Mostly pleasingly, we've continued to raise the money we need for the coming year. Over the past few months there's been a steady stream of support from shareholders keen to support our plans for the coming year. Thank you for your continued support and your faith in the company's prospects. Our funds position will also be aided by tapping into some capital associated with the merger with Antipodes Gold, which we're doing in order to list on the Canadian TSX-V market. Antipodes is also listed in New Zealand so shareholders will enjoy the best of both worlds in terms of increasing liquidity of our shares and having access to a broader investor base. The Antipodes Gold shareholder meeting held in Vancouver on 24 November gained shareholder approval of the sale of the Company's remaining assets, for the proposed reverse takeover of Chatham Rock Phosphate, and for a change of name (of the merged group) to Chatham Rock Phosphate Limited. These transactions once completed will ultimately result in Chatham Rock Phosphate being listed on the Toronto Stock Exchange. They do not signal that Chatham is going into the gold mining or exploration business - we are merely using the Antipodes "shell" to achieve this overseas listing. Together with the shell we inherit an experienced and well-connected Toronto-based director, several hundred resources-sector shareholders resident in a number of countries, and a local Canadian corporate support structure. This merger will strengthen CRP, and usher in a new chapter for the existing Antipodes shareholders. Plenty of upside The present share price of 0.8 cents values Chatham at $3.2 million, $1 million less than our market capitalisation in 2010, when we had no management team, no contracts with Boskalis, no 20-year mining permit, no legislation for applying for a marine consent, significantly less knowledge about the deposit, no direct involvement or expertise in the phosphate market, and only $250,000 in the bank. Even without the environmental consent, or the certainly of gaining it, CRP's market value topped $40 million for most of the two and a half years to February. Due to recent substantial investment, our directors and other associated interests are now Chatham's biggest shareholder group. Together with hundreds of others, including farmers, New Zealanders own more than half the company. So what's the game plan? To recap, it involves these key planks: 1. Focusing on the areas of the consenting process that need fixing, before we make a final decision to resubmit, while 2. Diversifying both our portfolio of interests and our access to capital markets. Chatham Rise project still key While we did not succeed with our initial consent application, much has been learned by both us as an applicant and by the Environmental Protection Authority. We are confident that this experience will valuably be translated into improved and hopefully streamlined application and hearing processes. Once we're confident with the process, we'll be able to resubmit an even better environmental permit application. Chatham was turned down on limited, unexpected and relatively minor issues. We are confident that these issues can be dealt with robustly on resubmission. We continue to believe the Chatham Rise project remains hugely valuable for all the same reasons: 1. Security of fertiliser supply for the agricultural sector. 2. Environmental benefits such as a much lower run off impact on lakes and rivers, much lower cadmium and much lower carbon footprint. 3. It's an ethical option, given that the current main source of phosphate from North Africa is from a disputed territory. 4. It's highly profitable given its adjacent location (meaning we have no incoming freight costs) and low mining costs. 5. Our estimated mining costs are roughly equivalent to the cost of shipping competing product from the other side of the world. This means the world rock phosphate price has to collapse to near zero before we can't compete. 6. Our annual forecast earnings before royalties and tax are approximately $90 million. 7. We'll pay $34 million in annual taxes and royalties, plus millions in port charges and create many high value and knowledge-based jobs in the port, on the mining ship, undertaking environmental monitoring and broader scientific research, in the agriculture and hospitality sectors and on the Chatham Islands. 8. The economics are also hugely favourable when compared to fish bottom trawling. The income earned by extracting phosphate would be $9,700,000 per km2 (we'll be covering 30km2 a year) compared with only $9,000 per km2 annually from trawling. 9. Our project could enable New Zealand to become a world leader in marine technology and expertise worth billions of dollars. 10. Our work at sea enhances the understanding and knowledge base of our marine environment to help identify marine areas most deserving of conservation. 11. The EPA's decision concluded mining would have no significant impact on fishing yields or fishing industry profitability, marine mammals or seabirds. Spreading the risk We're confident we will get environmental approval next time, but we want to broaden our investor appeal by becoming a more diversified operation so not all our eggs are in one basket. As well as the five marine applications in Namibia, we are developing relationships with other players in the market, maintaining our relationship with Boskalis, looking at other projects and entering the phosphate trading market. Farmer focus It's important to continue to build support from a range of stakeholders including farmers, as well as others, such as relevant government agencies. Not surprisingly in the current circumstances, targeting the farmer market for capital has had limited success in dollar terms but we decided, given they're such an important target audience, we need to keep building our stakeholder relationships. We continue to remind farmers, many of whom are currently under siege financially, our product is both a green option and one that could save them money, bearing in mind Chatham Rise phosphate requires less-frequent application and has high liming characteristics. We remain puzzled by the view of environmental groups who fail to see the irony of their opposition to our Chatham project. We don't understand how they can condone New Zealand's importation of all our phosphate requirements and we think it's hypocritical to support exporting our environmental footprint to countries mining phosphate where it involves severe social and environmental distress. And, of course, though environmental groups conveniently ignore it, trawling affects 50,000 km2 a year, and yet requires no environmental approvals. Mexican project update Odyssey Marine's Mexican marine phosphate project continues to get closer to a decision and when this occurs it should have some positive side effects for CRP. This is because CRP and the Mexican project have a director and some shareholders in common, and also because CRP will no longer carry the pioneering burden. Looking Forward The second half of this financial year should see CRP make significant progress including the merger with Antipodes Gold (and the associated TSX.V) listing, the completion of the present funding tranche, and an entry into phosphate trading at a number of levels. Chris Castle Managing Director Robert Goodden Chairman 27 November 2015 End CA:00274180 For:CRP Type:HALFYR Time:2015-11-27 08:30:32
- Forums
- NZX - By Stock
- CRP
- Ann: HALFYR: CRP: Interim report for the 6 months to 30 September 2015
Ann: HALFYR: CRP: Interim report for the 6 months to 30 September 2015
Featured News
Add CRP (NZSX) to my watchlist
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online