Centrex Metals withdrew from South Australia primarily due to a strategic shift in its business focus and financial challenges:
Strategic Refocus: Centrex Metals originally had several iron ore projects in South Australia, including the Bungalow magnetite joint venture. However, by 2016, the company began divesting these assets and joint ventures to reposition itself as an organic fertiliser producer. This included selling the proposed Port Spencer export site to grain exporters in 2019
1. Financial Difficulties: In early 2025, Centrex entered voluntary administration due to severe financial strain. The company had accumulated significant logistics debts (e.g., $16.9 million owed to rail provider Aurizon) and was struggling with cash flow, having only $463,000 in cash on hand by the end of 2024
2. Efforts to raise $10.4 million through a capital raise were crucial but ultimately insufficient to stabilize the business.
Operational Shift to Queensland: Centrex’s main operational focus shifted to the Ardmore phosphate rock project in Queensland, which became its principal asset. This project was seen as more viable due to its high-grade phosphate deposits and existing infrastructure links.
LML Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
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