Centrex targets phosphate production next year

CENTREX Metals has outlined a 10-year phosphate project south of Mount Isa that will pay itself off in three years and generate pre-tax cashflow of A$280 million.

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Centrex’s scooping work estimates the Ardmore phosphate project could cost $55-60 million to develop, with first production targeted next year.

The project’s pre-tax net present value is put at $124-129 million and its internal rate of return at 39-42%.

Centrex’s pricing assumptions utilised Integer Research and average US$157 per tonne over the life of the mine – on a cost and freight basis to customers in Australia, New Zealand and India.

That price broadly corresponds with 2016 pricing in NZ of imports from Morocco.

Ardmore in production would account for 3% of world supply.

Centrex had cash at the start of the December quarter of A$19.2 million...