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Chatham Rock Phosphate Limited (TSE:NZP)
:NZP

Chatham Rock Phosphate (NZP) AI Stock Analysis

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Chatham Rock Phosphate

(NZP)

Rating:39Underperform
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 (NZP) vs. iShares MSCI Canada ETF (EWC)

Chatham Rock Phosphate Business Overview & Revenue Model

Company DescriptionChatham 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 MoneyChatham 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
10
Very Negative
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
30
Negative
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
15
Very Negative
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
0.000.00412.005.33K5.20K5.17K
Gross Profit
-32.70K-37.52K-3.65K2.16K5.20K5.07K
EBIT
-878.26K-1.57M-1.53M-1.03M-569.50K-642.02K
EBITDA
-1.17M-1.43M-1.77M-1.03M-569.50K-639.80K
Net Income Common Stockholders
-1.16M-1.47M-1.77M-1.03M-572.94K-640.30K
Balance SheetCash, Cash Equivalents and Short-Term Investments
110.17K110.17K820.38K1.37M378.87K12.35K
Total Assets
6.96M6.96M7.85M8.13M5.22M4.54M
Total Debt
57.73K57.73K87.05K0.000.000.00
Net Debt
-52.45K-52.45K-733.33K-1.37M-378.87K-12.35K
Total Liabilities
408.34K408.34K578.82K1.05M85.41K208.22K
Stockholders Equity
6.55M6.55M7.27M7.08M5.14M4.33M
Cash FlowFree Cash Flow
-1.36M-1.67M-1.59M-888.38K-840.37K-546.70K
Operating Cash Flow
-540.83K-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
1.20M1.02M1.11M2.01M1.17M320.53K

Chatham Rock Phosphate Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.06
Price Trends
50DMA
0.06
Positive
100DMA
0.06
Negative
200DMA
0.07
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
56.60
Neutral
STOCH
44.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NZP, the sentiment is Positive. 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 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NZP.

Chatham Rock Phosphate Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSILI
53
Neutral
C$6.80M15.001.50%
51
Neutral
$2.04B-1.15-21.37%3.64%2.88%-30.57%
TSNZP
39
Underperform
C$7.12M-17.85%48.91%
TSQMC
39
Underperform
C$5.20M-9.80%-9.09%
TSGQ
29
Underperform
C$4.17M-599.35%-250.68%
$7.75M-56.10%
$4.18M-12.29%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NZP
Chatham Rock Phosphate
0.06
-0.02
-25.00%
TSE:ILI
Imagine Lithium Inc
0.02
>-0.01
-33.33%
TSE:GQ
Great Quest Fertilizer
0.02
-0.02
-50.00%
TSE:QMC
QMC Quantum Minerals
0.05
-0.03
-37.50%
EVKRF
Grid Battery Metals
0.05
0.02
66.67%
ULTHF
United Lithium
0.11
-0.13
-54.17%

Chatham Rock Phosphate Corporate Events

M&A TransactionsBusiness Operations and Strategy
Chatham Rock Phosphate Updates on Korella Projects Sale
Neutral
Apr 18, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Chatham Rock Phosphate Secures Funding Through Private Placement
Positive
Mar 21, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Chatham Rock Phosphate Extends Private Placement Closing Date
Positive
Mar 3, 2025

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.

M&A Transactions
Chatham Rock Phosphate Updates on Korella Project Sale
Neutral
Feb 24, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Chatham Rock Phosphate to Showcase Growth at PDAC 2025
Positive
Feb 20, 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.