All systems ‘go’ for Ardmore expansion

Centrex plans to launch straight into its Stage 1.5 expansion at the Ardmore phosphate mine after a successful $8 million share placement. The company also has a share purchase plan offer underway to raise a further $2 million. "Achieving the final investment decision for the Stage 1.5 expansion at Ardmore represents a watershed moment for Centrex," chief executive officer and managing director Robert Mencel said. Centrex chief executive officer and managing director Robert Mencel. "With this funding now secured, our team is dedicated to delivering the expansion on schedule and within budget. "Concurrently, we remain heavily focused on the successful continuation of our ramp-up initiatives at Ardmore, which is targeting an increase in our annualised production run-rate from 240,000tpa to 625,000tpa within only 12 months." The fresh funds will be used to construct additional camp and accommodation for the Ardmore operation, drying pads and other critical infrastructure. It will also provide Centrex with further working capital as it continues to scale up production. Related: Bar open for business as miner builds on Dajarra base "After careful consideration of the available financing options, we concluded that relying too heavily on debt at this juncture would result in unduly burdensome conditions being imposed on the company," Mr Mencel said. "To ensure certainty of reaching our production targets for CY2024, we firmly believe that executing the placement and SPP offer is the best path forward. "Further, strengthening our balance sheet now will allow us to secure future financing facilities with less stringent cash requirements, at lower risk to the company, and at reduced cost as well." Centrex is on track to produce 440,000 tonnes of phosphate concentrate this calendar year and is targeting an annualised production run-rate of 625,000tpa by December 2024. Related: Centrex embraces battery market opportunities "Looking ahead, Centrex is now well-positioned to significantly enhance Ardmore's operating profitability by capitalising on the economies of scale to be unlocked by the Stage 1.5 expansion," Mr Mencel said. "With ongoing uncertainty of supply from China, we look forward to developing the Ardmore mine into a significant contributor of food security in the Asia-Pacific region. "Additionally, we continue to actively pursue a range of prospective value-add opportunities, including the production of high-quality phosphoric acid for LFP batteries.”

All systems ‘go’ for Ardmore expansion

Industry Queensland

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