Centrex (ASX:CXM) has shipped 10,002 tonnes of beneficiated phosphate concentrate from its Ardmore Rock Phosphate Mine in Queensland to an Asian customer.
The shipment, which left from the Townsville Port on 7 May, was originally scheduled to leave in late April but was delayed as a result of poor weather at a previous port.
Centrex wants to ramp up its shipments to lift revenues, improve operating margins, and cut operating costs on a per tonne basis.
Managing Director Robert Mencel says increasing the size and frequency of the beneficiated phosphate concentrate sales is essential to transform Ardmore into a highly cash flow-positive project.
“Projected sales for the remainder of CY2024 continue to be underpinned by the stage 1.5 expansion works that are currently underway, which remains on budget and on schedule,” he says.
As a result of the stage 1.5 expansion work, the company has achieved records for its crushed ore (28,571 wet metric tonnes (WMT)), produced concentrate (18,578 WMT), and harvested categories (15,289 WMT).
Centrex, which has a market capitalisation of $43.71 million, is continuing mining and production work as the company prepares for making progressively larger shipments throughout this year.
The stage 1.5 expansion work implemented at Ardmore includes introducing night shifts for the processing plant and waste removal.
The company has purchased additional cyclone banks, scheduled for installation during Q2 2024, which are expected to enhance plant separation and efficiency.
Once installation is completed, Centrex expects to operate the processing plant at a higher throughput rate, while maintaining a 24-hour shift which began on 23 April 2024.
Centrex says the combined effect of increased throughput and greater plant availability is anticipated to contribute to a significant lift in production and reduction in operating costs.
The Ardmore mine lies south of Mt Isa in Northwest Queensland and is linked to the Port of Townsville via an existing rail line. The mine has a current resource of 10.1 million tonnes @ 30.2% phosphorous pentoxide.
Write to Aaliyah Rogan at Mining.com.au
Images: Centrex
