How Canadian Phosphate’s New Permits Could Unlock Millions of Tonnes of Phosphate
Canadian Phosphate Limited advances its Canadian operations with new bulk sampling permits and a promising exploration target, while steady sales and customer upgrades signal growth ahead.
- 10,000-tonne bulk sample permit secured for Barnes deposit
- Exploration Target of 20.2–28.6 million tonnes phosphate identified at Wapiti
- Sales of $820,000 in Q2 2025 with expected growth post-customer plant upgrade
- Additional permits for Pump Station bulk sampling and Marten industrial minerals underway
- Multi-Year Area-Based exploration permit application submitted for Wapiti
Steady Sales and Operational Momentum
Canadian Phosphate Limited (ASX – CP8) reported steady cash receipts of $820,000 for the June 2025 quarter, driven by rock phosphate sales to customers in both the US and Canada. The company highlighted that sales are expected to accelerate in the third quarter following a significant plant upgrade by a key customer, which will quadruple production capacity to 25,000 tonnes of granulated product annually. This operational boost is poised to enhance revenue and profitability in the near term.
Advancing Bulk Sampling and Permitting
During the quarter, CP8 secured a 10,000-tonne bulk sample permit for its Barnes rock phosphate deposit, part of the Fernie Project in British Columbia. Bulk sampling is slated to commence in Q3 2025, marking a critical step toward scaling production and supporting market adoption of its high-grade phosphate products. Additional permits for a further 10,000-tonne bulk sample at the Pump Station deposit and a substantial 150,000-tonne Industrial Minerals permit for the Marten deposit are progressing through regulatory channels, underscoring the company’s commitment to expanding its operational footprint.
Exploration Target Highlights Significant Potential
Post-quarter, CP8 announced the completion of an independent Exploration Target Report for its Wapiti Phosphate Project, prepared by Dahrouge Geological Consulting. The report identifies a conceptual target ranging from 20.2 to 28.6 million tonnes of phosphate rock grading between 15.76% and 15.96% P₂O₅ across approximately 11.5 kilometres of strike, with potential for further expansion. While the target remains conceptual and requires further drilling to confirm a Mineral Resource Estimate, it signals substantial upside potential for CP8’s Canadian phosphate assets.
Strategic Exploration and Market Positioning
In line with its growth strategy, CP8 has submitted a Notice of Work application for a Multi-Year Area-Based exploration permit at Wapiti, aiming to deepen geological understanding and support resource definition. The company is also conducting downstream market analysis to optimize product applications, targeting both fertilizer markets and the emerging lithium iron phosphate (LFP) battery sector. This dual-market approach reflects CP8’s ambition to position itself as a critical domestic supplier amid global supply chain uncertainties.
Financial and Corporate Updates
CP8 reported positive working capital and cash reserves of nearly $495,000 at quarter-end, supported by ongoing cost reductions and improved margins despite sales being below budget. The company also issued employee and director options as part of its incentive plan and announced the resignation of a joint company secretary. Engagement with British Columbia’s Ministry of Mines and Critical Minerals continues, highlighting CP8’s role in the province’s critical minerals strategy.
Bottom Line?
With key permits in hand and a promising exploration target, Canadian Phosphate is well-positioned to capitalize on growing domestic demand and evolving market opportunities.
Questions in the middle?
- How soon can CP8 convert the Wapiti Exploration Target into a formal Mineral Resource Estimate?
- What impact will the customer’s plant upgrade have on CP8’s sales trajectory and margins in the coming quarters?
- How will CP8’s expanding permit portfolio influence its production scale and regulatory timeline?
