Centrex (ASX:CXM) has reduced its budgeted capital expenditure for a stage 1.5 expansion of its Ardmore Phosphate Mine in Queensland to $17.6 million.
This represents an $8.1 million reduction compared to the previously estimated stage 1.5 capital expenditure of $25.7 million.
Once the expansion project is completed, the $46.32 million market capitalisation company says Ardmore could reach a production capacity of 625,000 tonnes per annum (tpa) of beneficiated phosphate concentrate.
Centrex Chief Executive Officer (CEO) and Managing Director Robert Mencel says the project is a ‘highly capital-efficient’ and ‘attractive’ development pathway for Ardmore.
“The reduction in capital expenditure compared to last year’s guidance is truly significant when considering the broader inflationary forces at play across the entire mining sector.
The stage 1.5 project has attracted a substantial amount of interest from financiers, and financing discussions are progressing well.”
“The reduction in capital expenditure compared to last year’s guidance is truly significant when considering the broader inflationary forces at play across the entire mining sector”
This project expansion has been designed as an interim towards stage two, with the targeted 625,000 tpa of annual production representing 80% of the production output of stage two.
Centrex says the project became possible due to Ardmore’s beneficiation plant’s ‘exceptional’ performance, which consistently exceeded design throughput and metallurgical design performance criteria.
Stage 1.5 development involves upgrading existing non-processing infrastructure. The company has completed engineering assessments for mining, ore crushing, concentrate drying, and process plant improvements, alongside finishing procurement work streams and execution schedules.
The company is advancing discussions about financing the expansion and will keep the market updated in due course.
Centrex shares closed 13.04% higher at $0.078 on Tuesday 7 November.
The Ardmore Phosphate Mine lies south of Mt Isa in northwest Queensland and has a mineral reserve of 10.1 million tonnes @ 30.2% phosphorus pentoxide (P2O5).
Centrex is an Australian explorer and developer focused on its wholly owned phosphate and potash projects in Australia.
As of 30 September 2023, the company had $2.840 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Centrex
