Centrex Ships Record 30,550 Tonnes and Launches $10.4M Expansion Raise

Operational Stability Amid Strategic Adjustments

Centrex Limited (ASX: CXM) reported a quarter of operational consolidation at its wholly owned Ardmore Phosphate Rock Mine during Q4 2024. The company deliberately reduced mining activities by 16% quarter-on-quarter to unwind elevated stockpiles and improve cash flow, reflecting a strategic pivot towards sustainable production management ahead of its planned Stage 1.5 Expansion.

Despite the reduction in mined ore, processing throughput increased, with crushed ore rising 15.6% and plant feed up 16.2%, signalling improved operational efficiency. However, yield dipped to 63.8% from 69%, attributed to feed particle size trials, which are expected to have no lasting impact.

Record Shipments and Market Breakthrough

Centrex achieved a milestone with its largest single shipment of beneficiated phosphate concentrate, totaling approximately 30,550 tonnes. Notably, the company completed Australia’s first phosphate export to India, dispatching 22,800 tonnes in October 2024. This landmark shipment opens a new market avenue, potentially expanding Centrex’s export footprint in the Asia Pacific region.

Overall, the quarter saw shipments of 84,519 tonnes (adjusted to exclude prior shipments), with half-year shipments reaching 133,475 tonnes, underscoring growing demand and operational scale.

Financial Position and Funding Initiatives

Centrex closed the quarter with a modest cash balance of A$0.463 million, supplemented by secured term deposits of A$0.587 million. Importantly, the company received $4.1 million in receivables shortly after quarter-end, bolstering liquidity. Additionally, a conditional Letter of Indication from Export Finance Australia for up to US$3.45 million offers potential financing to enhance export capabilities.

To underpin its growth ambitions, Centrex launched a $10.4 million entitlement offer in January 2025, aiming to raise a minimum of $9 million. Proceeds are earmarked for working capital and upgrades to the Ardmore plant as part of the Stage 1.5 Expansion, which is expected to increase steady-state production to 625,000 tonnes per annum.

Exploration and Corporate Developments

Exploration activities remained subdued across other projects including Oxley Potash and Goulburn Base Metals, with the company focusing on strategic options such as joint ventures or sales for Goulburn. Centrex also maintained a disciplined approach to expenditure, with development and investing costs carefully managed during the quarter.

Corporate governance remained steady, with the Annual General Meeting held in November 2024 and a trading halt in December related to logistics and lender negotiations, resolved by early January 2025 with new agreements in place.

Looking Ahead

Centrex’s immediate focus is on completing the entitlement offer and advancing the Stage 1.5 Expansion at Ardmore. The company’s growing stockpiles and improved processing metrics position it well to meet increasing market demand, particularly as it consolidates its foothold in emerging export markets like India.