Centrex Limited (ASX:CXM) Corporate Update on Ardmore Mine
Corporate Update
Centrex Limited (ASX: CXM) has announced significant developments regarding its wholly owned subsidiary, Agriflex Pty Ltd, and the Ardmore Rock Phosphate Mine. The Company has secured strategic agreements that enhance its working capital position, laying solid groundwork for the Stage 1.5 Expansion.
Logistics Restructuring
Due to rising logistics costs related to increased production at Ardmore, Centrex has incurred trade payables totalling $16,914,176 as of September 27, 2024. To maintain shipments, Centrex engaged logistics providers, including Aurizon Operations Limited, prompting a restructuring of supply terms. This includes security arrangements such as general security, guarantees, and forbearance, facilitating a path towards capital raising.
Management Commentary
Robert Mencel, CEO and Managing Director of Centrex, expressed gratitude to suppliers and financiers for their support. “I now have greater confidence in Centrex’s ability to unlock the potential of the Ardmore Rock Phosphate Mine. The agreements strengthen our working capital position and provide a pathway to completing the Stage 1.5 Expansion. Although the company has suffered from cash flow issues, current operations at Ardmore will benefit from strong phosphate prices, a strengthening US dollar, and declining operating costs,” he stated.
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