Name of the Project
Ardmore phosphate rock project.

Location
North-west Queensland, Australia.

Project Owner/s
Centrex Metals.

Project Description
Ardmore is one of the few remaining undeveloped high-grade phosphate rock deposits in the world. 

An updated definitive feasibility study (DFS) has confirmed the profitability and robustness of the project. The original DFS was completed in October 2018 and in February 2019 the company released the results of an optimised DFS, which has been used as the baseline for the August 2021 update.

The updated DFS envisages a simple opencut mine with a ten-year mine life producing 800 000 t/y.

Underlying mine designs and resulting ore reserves remained unchanged from the 10.1-million tonnes at 30.2% phosphorous pentoxide reported in the DFS. The potential exists to increase the mine’s life through the conversion of resources to reserves and near mine exploration.

Plant design, site layout, construction material quantities and installation hour-estimate remain unchanged from the original DFS.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an ungeared pretax net present value, at a 7% discount rate, of A$207-million and a pretax internal rate of return of 52%, with a payback of less than two years.

Capital Expenditure
Preproduction capital is estimated at A$78.47-million. This compares with the capital investment of A$69-million in the 2019 optimised DFS to the same parameters.

Planned Start/End Date
Not stated.

Latest Developments
Centrex has made a substantial cut to its capital expenditure (capex) guidance for the expansion of the Ardmore phosphate mine.

The budgeted capex to complete the Stage 1.5 expansion, targeting 625 000 t/y of production, has been reduced from A$25.7-million to A$17.6-million.

The Stage 1.5 expansion is an interim step towards the 800 000 t/y Stage 2 expansion as contemplated in the 2021 definitive feasibility study.

Stage 1.5 represents 80% of the production output of Stage 2 while requiring significantly less capital.

The reduction in spending on Stage 1.5 capital items is mainly attributed to ongoing project optimisation, leading to a refined capex profile.

Further, Centrex has been able to use its Stage 1 operating cash flows, previously raised equity capital and hire purchase financing for a new crushing circuit to partially fund the capex of Stage 1.5 incurred to date.

Centrex is in discussions regarding the financing of the expansion.

Key Contracts, Suppliers and Consultants
GR Engineering Services (capital cost update).

Contact Details for Project Information
Centrex Metals, tel +61 8 8213 3100.