Sharechat Logo

Chatham Rock Phosphate delays IPO, first half loss widens

Friday 25th November 2011

Text too small?

Chatham Rock Phosphate, which is developing a project to mine phosphate from the sea floor for use as a fertiliser, has announced it will delay its proposed $40 million initial public offering till next year, sighting uncertain market conditions.

The Takaka-based company is looking to private investors to raise new capital in the interim, and posted an unaudited net loss after tax of $248,000 in the six months ended Sept. 30, up from $185,000 on the same period last year as it continues to spend development funds ahead of likely revenue.

“The purpose of the IPO is to fully fund CRP through to a mining license grant and commencement of production. Although it remains a priority to secure full funding for the project we consider it in the best interests of our shareholders to delay seeking full funding for now,” said chairman Keith Hindle.

CRP is known to have been considering listing on the Toronto Stock Exchange, which already has 19 listed fertiliser companies. It has had the project valued at $34 million, rising to $400 million if successfully executed.

Hindle said developments include operational matters, financing, and proposed overseas listing, with market developments in Australia and South-East Asia.

In September CRP’s shares soared to as high as 33 cents on the NZAX alternative market up from 13 cents on Aug. 19, promoting the NZX to ask the company if it was still in compliance with disclosure rules or had market sensitive information that could account for the gains.

CRP, or Widespread Energy as it was previously known, was granted a prospecting permit on the Chatham Rise last year to test whether the area contains an estimated 100 million tonnes of rock phosphate, which could be worth $28 billion.

A successful mining operation could slash New Zealand’s costs for imported fertiliser.

The estimate comes from 30-year-old data derived from exploration work carried out by the government and companies such as Fletcher Challenge in the 1970s and 1980s.

CRP shares last traded at $0.20 on Nov. 16.

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Deep-sea phosphate miner CRP on track for final investment decision this year
Odyssey Marine gets 12% of Chatham Rock in charter payment
Chatham Rise dredging project signs research vessel, seeks capital
Chatham Rock Phosphate to investigate added-value processing options
Chatham Rock Phosphate says market re-rating stock on value of prospects