CRP
18/12/2014 12:41
GENERAL
NOT PRICE SENSITIVE
REL: 1241 HRS Chatham Rock Phosphate Limited
GENERAL: CRP: CRP provides December Update
Update
18 December 2014
Merry Christmas
The Chatham Rock Phosphate board and management team would like to wish all
our shareholders and stakeholders a Merry Christmas and Happy New Year.
We're especially hoping for the latter and that January will bring good news.
Decision expected in January
A decision on CRP's marine consent application should be announced on or
before 30 January.
The Decision-making Committee assessing CRP's application officially closed
the hearing last Friday, setting the clock ticking on 20 working days
(excluding from 20 December to 10 January) to consider its decision.
The DMC adjourned the hearing on 19 November to consider whether it had
sufficient information to formally close the proceeding. In the intervening
time it concluded it didn't need any further input from the parties, hence
the decision to close.
While we'd obviously have liked a decision before Christmas, we're pleased
the DMC is taking its time to consider what is complex and very detailed
information. All groups with an interest in seabed mining are waiting for the
decision with bated breath.
Trials show Chatham rock highly effective
Earlier this week we announced the results of new glasshouse trials
demonstrating the performance of direct application Chatham Rise rock
phosphate compares favourably with manufactured fertilisers. We commissioned
Lincoln University and AgResearch to undertake trials in a glasshouse over
four months to assess the effectiveness on plant productivity of phosphate
samples we collected during 2012 voyages.
The trial found our phosphate delivered on average 85% of the productivity of
low-sulphur triple superphosphate. The tests used clover grown on five
pasture soils from Chatham and the South and North Islands. The testers used
three application rates and took three harvests with plant yield and
phosphorus uptake in the clover used to measure performance.
The study achieved comparable results to extensive field trials conducted
during the 1980s, which also found Chatham Rise rock phosphate to be an
effective pastoral fertiliser.
We're planning field trials in the new year in a range of environments and
pastoral systems across the country. They will update and confirm the
applicability of the product to modern farming practices, with a focus on New
Zealand farming conditions but the results are expected to be applicable to
global markets.
News of our trials featured on Radio New Zealand's midday rural news. If you
want to listen, our item starts about half way through the bulletin:
http://www.radionz.co.nz/national/programmes/ruralnews/audio/20161273/midday-
rural-news-for-16-december-2014
CRP to receive Callaghan R&D grant
Receipt of a Callaghan Innovation Research and Development (R&D) Growth Grant
is a strong vote of confidence in CRP's innovation. Thanks to our Chief
Operating Officer Ray Wood for the extensive work he put into the
application.
Callaghan provides grants to increase R&D investment by businesses. The
grants provide 20% public co-funding for qualifying firms' eligible
expenditure, capped at $5 million a year. After two years, businesses can be
granted a two-year extension of funding.
We see the grant as an endorsement of CRP's innovation since 2010 in
developing our pioneering marine mining project with its strong ties to
agriculture.
Planned field trials will be one of our first research priorities with
scientists from AgResearch and Lincoln University to test direct application
of CRP's phosphorite rock to determine optimum application programmes for
typical New Zealand pastoral uses, including established hill country grazed
pasture and high producing pastures under intensive dairy grazing.
Other research priorities include collecting environmental data from the
Chatham Rise to better understand the variability of oceanographic conditions
and sea floor habitat and trialing the placement of hard material on the sea
floor to encourage re-establishment of sensitive benthic habitats. We also
want to test components of the mining system at 400 m on the Chatham Rise and
develop new techniques to monitor the dynamic sediment plume generated by the
mining operations.
Helping our neighbours
Ray Wood attended the Pacific-Europe Network for Science, Technology and
Innovation (PACE-Net Plus) workshop on Reconciling Mining and Sustainable
Development in Pacific Countries held in Auckland on 8-9 December. The
project is a 3-year programme to encourage bi-regional dialogue between
European and Pacific researchers.
The workshop identified priority areas for future research cooperation to
address the challenges of reconciling mining industry (both terrestrial and
seabed mining) and sustainable development in the Pacific countries. The
workshop discussed enhancing environmental considerations in mining,
increasing knowledge on environmental and social impacts and corporate social
responsibility.
The objectives were to define and update the science, technology and
innovation priorities in the area; identify future EU-Pacific cooperation,
make recommendations to policy makers, and identify innovation niches. The
group also identified joint initiatives such as calls for research proposals
and exchange of knowledge.
There was repeated emphasis on the importance of community engagement by
mining companies. The workshop concluded with several proposals for projects
that could benefit the South Pacific such as an institute to provide advice
to Pacific Island countries on mining-related issues, and developing
underwater robots to make exploration and development more efficient and
affordable for these countries.
CRP was chosen as a case study for the deep-sea mining topic. We are
providing a copy of all the documents, evidence and testimony from the marine
consent hearings to the island states.
Funding Round Successfully Completed
Completing a final tranche of $820,000 in new capital takes us fully through
the marine consent application process. We don't plan to seek any additional
capital until a decision on our application has been made.
We're thankful to shareholders for their continued strong belief in and
support of the project over the past few years and sincerely hope the next
cash we raise will be at significantly higher prices.
Meanwhile it's gratifying to see the share price recover in recent weeks from
the 12c level at which we've been issuing shares, to around 19-20c since the
capital raising pressure ended.
Financial Result
The interim report issued in late November provided shareholders with a more
detailed summary of our operations. The trading result for the six months to
September 30 was a loss of $1,870,507 (2013: loss of $675,788), reflecting
the costs associated with higher levels of activity - especially the marine
consent process. For the full report go to our website:
http://www.rockphosphate.co.nz/news/2014/12/8/chatham-rock-interim-report-for
-the-six-months-to-30-september-2014
Updated presentation
We've updated our investor presentation and it's on the front page of the
website. For a useful overview check out:
http://static.squarespace.com/static/51d24098e4b0d519d0c065f5/t/54869d25e4b00
3a45498dfd0/1418108197469/CRP+8+December14.pdf
Chris Castle, Managing Director [email protected] or +64 21 55 81 85
End CA:00259112 For:CRP Type:GENERAL Time:2014-12-18 12:41:44
