Chatham Rock Phosphate (NZP) AI Stock Analysis

• Market Cap: C$7.12M
• Dividend Yield: N/A
• Average Volume (3M): 4.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• Revenue Growth: N/A
• EPS Growth: 48.91%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 109,483,765
• 10 Day Avg. Volume: 5,250
• 30 Day Avg. Volume: 4,736
• PEG Ratio: -0.28
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.34
• Price Target Upside: 466.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: ―

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.

Chatham Rock Phosphate Business Overview & Revenue Model

Company Description

Chatham Rock Phosphate Limited operates as a junior mineral development company. The company focuses on the development and exploitation of the Chatham Rise rock phosphate deposit, which comprises a mining permit covering an area of 820 square kilometers located to the east of Christchurch, New Zealand; and international phosphate projects. It also explores for phosphate on the French Polynesian island of Makatea. The company is based in Wellington, New Zealand.

How the Company Makes Money

Chatham Rock Phosphate Limited generates revenue through the extraction and sale of rock phosphate. The company targets agricultural sectors that require phosphate for fertilizer production, positioning its product as a sustainable and locally sourced alternative. Revenue is primarily derived from the sale of extracted phosphate to domestic and international markets. Additionally, Chatham Rock Phosphate may engage in partnerships with agricultural and fertilizer companies to secure long-term supply agreements, which can stabilize and enhance its revenue streams. The company's earnings are influenced by factors such as phosphate market prices, extraction costs, and regulatory approvals for mining operations.

Chatham Rock Phosphate Financial Statement Overview

Summary

Chatham Rock Phosphate Limited faces significant financial challenges, with persistent negative revenue growth and ongoing losses. Although the balance sheet shows minimal debt, the company struggles with cash flow management, relying heavily on external financing to cover operational deficits. Strategic changes may be necessary to improve financial health and operational efficiency.

Income Statement

The company has consistently reported zero revenue over the TTM period, reflecting significant challenges in generating sales. Gross profit margin is negative due to expenses exceeding any form of revenue, and net income is deeply negative, indicating ongoing operational losses. EBIT and EBITDA margins are also negative, further pointing to inefficiencies and cost management issues.

Balance Sheet

The balance sheet reveals a relatively low level of debt, resulting in a favorable debt-to-equity ratio. However, stockholders' equity has decreased over time, indicating potential erosion of shareholder value. The equity ratio remains high, demonstrating reliance on equity financing, but the overall asset base has been shrinking.

Cash Flow

Operating cash flow is negative, indicating cash burn from operations. Free cash flow is also negative, reflecting the company's inability to generate surplus cash after capital expenditures. Financing activities have been the main source of cash, suggesting dependency on external funding to sustain operations in the absence of positive operating cash flows.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
0.00	0.00	412.00	5.33K	5.20K	5.17K
	Gross Profit
-32.70K	-37.52K	-3.65K	2.16K	5.20K	5.07K
	EBIT
-1.17M	-1.57M	-1.82M	-939.00K	-569.50K	-642.02K
	EBITDA
-1.16M	-1.44M	-1.52M	-935.00K	-569.50K	-639.80K
	Net Income Common Stockholders
-1.16M	-1.47M	-1.77M	-1.03M	-572.94K	-640.30K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
51.16K	110.17K	820.38K	1.37M	378.87K	12.35K
	Total Assets
6.78M	6.96M	7.85M	8.13M	5.22M	4.54M
	Total Debt
36.73K	57.73K	87.05K	0.00	0.00	0.00
	Net Debt
-14.43K	-52.45K	-733.33K	-1.37M	-378.87K	-12.35K
	Total Liabilities
264.08K	408.34K	578.82K	1.05M	85.41K	208.22K
	Stockholders Equity
6.51M	6.55M	7.27M	7.08M	5.14M	4.33M
Cash Flow		Free Cash Flow
-1.36M	-1.67M	-1.59M	-888.38K	-840.37K	-546.70K
	Operating Cash Flow
-782.53K	-1.52M	-1.50M	-802.87K	-767.55K	-459.13K
	Investing Cash Flow
-137.21K	-155.29K	-94.05K	-164.50K	-72.83K	-87.57K
	Financing Cash Flow
1.20M	1.02M	1.11M	2.01M	1.17M	320.53K

Chatham Rock Phosphate Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NZP, the sentiment is Neutral. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.60 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:NZP.

Chatham Rock Phosphate Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%
NPK	48 Neutral	C$27.91M	―	-32.62%	―	-39.06%	-9.07%
NZP	39 Underperform	C$7.12M	―	-17.85%	―	―	48.91%
EMN	39 Underperform	C$17.31M	―	-205.34%	―	―	-70.16%
FMC	37 Underperform	C$18.56M	―	-242.26%	―	―	-57.21%

Chatham Rock Phosphate Corporate Events

Chatham Rock Phosphate Updates on Korella Projects Sale

Chatham Rock Phosphate Limited has announced the proposed sale of its Korella North and South mining and exploration leases to the Marshall Group, an Australian entity. The transaction, which includes a cash payment and royalties, is subject to due diligence and contract negotiations. The Marshall Group has shifted to non-exclusive negotiations, allowing other interested parties to re-engage. Additionally, Chatham Rock Phosphate has received unsolicited interest in its other phosphate projects, indicating ongoing interest in the phosphate industry.

Spark’s Take on TSE:NZP Stock

According to Spark, TipRanks’ AI Analyst, TSE:NZP is a Underperform.

Chatham Rock Phosphate Limited faces major financial hurdles, with persistent operational losses and negative cash flows underscoring the need for strategic financial restructuring. The technical analysis points to a bearish trend, while valuation metrics reflect unprofitability. However, recent corporate events provide a glimmer of hope, as successful funding and strategic initiatives could enhance the company’s future prospects. The overall outlook remains cautious, given the significant financial and operational challenges.

To see Spark’s full report on TSE:NZP stock, click here.

Chatham Rock Phosphate Secures Funding Through Private Placement

Chatham Rock Phosphate Limited has successfully closed a private placement of units, raising gross proceeds of CA$111,940. The funds will be allocated towards completing the permitting process for their Avenir Makatea project, initiating a reapplication for a marine environmental consent on the Chatham Rise, and for general working capital. This development supports the company’s strategic initiatives in phosphate resource development and strengthens its operational capabilities.

Chatham Rock Phosphate Extends Private Placement Closing Date

Chatham Rock Phosphate Limited has announced an extension of the closing date for its non-brokered private placement to March 21, 2025, from the previously planned March 7. This extension, approved by the TSX Venture Exchange, allows the company to accept additional subscriptions, potentially increasing its capital raise from the sale of up to 5,000,000 units at CAD 0.07 per unit. This move could enhance the company’s financial position and support its strategic initiatives.

Chatham Rock Phosphate Updates on Korella Project Sale

Chatham Rock Phosphate Limited has agreed in principle to sell its Korella North and South phosphate projects to the Marshall Group, an Australian entity. The sale includes a cash payment and royalties based on production. The due diligence process for this transaction has been extended to June 30, 2025, which may impact the timeline for finalizing the sale.

Chatham Rock Phosphate to Showcase Growth at PDAC 2025

Chatham Rock Phosphate Limited is set to participate in the PDAC 2025 conference in Toronto, a key event for mining investments, to showcase its growth and attract investors. The company has expanded from a single project to multiple phosphate ventures, enhancing its market position and aiming for significant operational cash flows by 2028, aligning with their fundraising efforts.