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
A final investment decision is expected in October 2022.

Latest Developments
Centrex will raise A$16-million through a share placement to support the development of the Ardmore phosphate project, in Queensland.

The company will place 57.1-million ordinary shares to institutional, professional and sophisticated investors, at 14c a share, to raise an initial A$8-million. The shares will be issued under Centrex’s existing placement capacity.

The company will also undertake a 5-for-42 pro-rata, nonrenounceable entitlement offer to eligible shareholders, raising a further A$8-million. The entitlement offer will also be at 14c a share, with the offer price representing an 11.8% discount to Centrex’s 15-day volume weighted average share price.

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

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