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An update from Chatham Rock Phosphate ( (TSE:NZP) ) is now available.
Chatham Rock Phosphate has agreed to sell its wholly owned Australian subsidiary Avenir Makatea Pty Ltd to Austure Industries for AU$1.4 million, comprising AU$900,000 in staged cash payments over two years and a 20% stake in a new Austure subsidiary, Austure Phosphate AU Pty Ltd, which will build a DCP/MCP manufacturing plant in Cloncurry. The deal integrates Chatham’s Korella North rock phosphate as feedstock for an innovative, low-capex, modular plant that uses electricity rather than sulphuric acid to produce phosphoric acid, enabling domestic manufacture of feed phosphates in a market currently reliant on imports and facing high prices and supply constraints, particularly from China. The green process can use low-grade tailings from Korella North and produces a usable silica by-product, which, combined with proximity to northern Australian cattle markets, is expected to lower costs versus imports and bolster Australia’s sovereign capability in critical livestock nutrition inputs, while giving Chatham an ongoing strategic interest via its equity stake and board representation in the new venture.
The most recent analyst rating on (TSE:NZP) stock is a Buy with a C$0.34 price target. To see the full list of analyst forecasts on Chatham Rock Phosphate stock, see the TSE:NZP Stock Forecast page.
Spark’s Take on TSE:NZP Stock
According to Spark, TipRanks’ AI Analyst, TSE:NZP is a Underperform.
Chatham Rock Phosphate Limited’s overall score reflects significant financial struggles marked by negative revenue and cash flow challenges. While the balance sheet shows low debt, reliance on external funding is high. Technical analysis indicates mixed signals, with the stock trading below key moving averages. Positive corporate events, such as recent funding and strategic initiatives, provide some optimism for future prospects but are not enough to counterbalance the current financial weaknesses.
To see Spark’s full report on TSE:NZP stock, click here.
More about Chatham Rock Phosphate
Chatham Rock Phosphate Limited is a New Zealand-based phosphate company focused on developing and supplying rock phosphate resources, including from its Korella North mine in Australia, for agricultural and animal nutrition markets. Through its subsidiaries, it has investigated downstream processing into value-added products such as dicalcium phosphate (DCP) and monocalcium phosphate (MCP) to serve livestock and fertilizer demand, particularly in Australia.
Average Trading Volume: 61,127
Technical Sentiment Signal: Sell
Current Market Cap: C$5.05M
For a thorough assessment of NZP stock, go to TipRanks’ Stock Analysis page.