CRP
31/05/2013 08:31
FLLYR
REL: 0831 HRS Chatham Rock Phosphate Limited
FLLYR: CRP: Full Year to 31 March 2013
Final announcement for year to 31 March 2013
Chatham Rock Phosphate Ltd today announced a loss of $1.4 million, reflecting
the heighted activity of the company as it works towards gaining a mining
licence and marine consent. The result compares with a loss of $741,000 in
the comparative period last year.
CRP is developing a seabed rock phosphate resource on the Chatham Rise, about
450 km off the coast of New Zealand.
The past 12 months have been immensely satisfying for the progress achieved
towards the company's goal of starting mining operations in 2015.
CRP's ongoing work continues to demonstrate the economic, financial and
environmental benefits of the project:
- It is New Zealand's only major rock phosphate deposit- providing at least
15 years supply
- Based on present projections it is expected to generate annual earnings
pre-tax of US92 million
- It has significant environmental benefits - ultra low cadmium, low carbon
footprint, low farm run-off characteristics
- According to the NZ Institute of Economic Research it will benefit the NZ
economy by $900 million through import substitution, exports and increased
economic activity.
Operations highlights
Among the highlights achieved over the past year (including those that have
occurred since balance date) were:
- Submission of a draft marine consent application to the Environmental
Protection Authority
- Edison investment research increasing CRP's valuation to $2 a share from
$1.87
- The Government bringing forward the start date of the EEZ legislation which
will enable CRP to submit a final marine consent application at the end of
June
- The early enactment of the Crown Minerals Act on 24 May 2013 to enable
CRP's mining licence application to be considered under the new law
- The appointment of three new directors to the board - Boskalis senior
executive Ko de Blaeij, marine expert Robert Goodden and CRP principal
scientist Robin Falconer
-The appointment of senior GNS scientist Ray Wood to the role of Chief
Operating Officer.
-Capital raised totalling $15.8 million since April 2012, including
continuing support by existing shareholders. A total of $21.9 million has now
been raised for the project since the prospecting licence was granted in
early 2010
- Strong interest in the project at international conferences where team
members are sought-after speakers
- Regular media coverage of announcements and project progress by industry,
national and international media
- Preparation of numerous scientific reports by NIWA on a range of topics
related to the marine environment, for use in the environmental impact
assessment supporting the marine consent application to the EPA
- Preparation of highly sophisticated plume models by world expert Deltares
to measure and in assist in minimizing the predicted influence of mining
activities
-Continued active progress with Royal Boskalis in the design of a mining
system
Filing of our mining licence application in September 2012
- Royal Boskalis investing in a 20% holding
- Applying for five phosphate prospecting licences off the coast of Namibia
- The appointment of Najib Moutia (a former senior executive of world leading
phosphate producer OCP) as Vice President Strategy and Marketing.
The most significant achievement, from an investor perspective, was the
rerating of the company's share price following several key milestones.
At its 46c peak on 9 October 2012, the company's market value reached nearly
$59 million, compared with $8.5 million in January 2012 and $22 million
before the issue of shares on 24 September to Royal Boskalis and Subsea
Investments.
Driving the rise in the price was CRP submitting its application for a mining
licence and the release of the first Edison Research report assessing the
company's value at that stage at $1.87.
The share price has since settled at around the 35c mark with a present total
market capitalisation of $47.5 million
A key part of the company's operations involves building strong relationships
with all of our stakeholders - informing them about the project, seeking
their input and keeping them advised of our progress; be they non-government
organisations, politicians, officials and advisers, iwi and imi, the
international scientific and mining and fertiliser industries, the media, and
of course our shareholders.
This consultation and communication works in tandem with ensuring we have
scientific evidence to support any claims we make.
The primary focus in the 6-7 months ahead will be working through the
consenting process needed for the marine consent. All going well, approval
will be granted by early 2014, leading the way to completing engineering
designs and modifying the ship Royal Boskalis will use for mining and
transporting the rock phosphate deposit.
Chris Castle
Chief Executive
30 May 2013
End CA:00236906 For:CRP Type:FLLYR Time:2013-05-31 08:31:40
