Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

A Unique Player in the Multibillion Dollar Agriculture Market Just Acquired an Australian Mine

Jon Brown Jon Brown, Stockhouse
2 Comments| October 19, 2021

{{labelSign}}  Favorites
{{errorMessage}}


(Image via Chatham Rock Phosphate.)


Looking for a unique opportunity in a growing market that has yet to full reach its prime? The global market for Smart Agriculture is projected to reach $ 18.7 billion (USD) by the year 2027, according to the latest report from analysis firm ResearchAndMarkets.com, with a compound annual growth rate (CAGR) of 9.4% over that time.



A public mineral exploration company based in New Zealand recently made waves when it moved to acquire a phosphate mine that will service the growing demand for competitively priced fertilizers.
Chatham Rock Phosphate Limited (TSX-V: NZP, Forum) signed a term sheet to acquire the Korella Phosphate Mine from Australia Venus Resources in October, 2021.

The company will fund the $11.2 million (CAD) acquisition through a cash payment of $280,000, a share issuance valued at $1.8 million and $9.1 million in royalties payable in respect of the first 1 million tonnes of rock phosphate sold.

Located in North-West Queensland, approximately 150 km southeast of Mt. Isa, the Korella Mine adjoins the Phosphate Hill Mine, which is owned and operated by Incitec Pivot. Its mining lease (ML90209), in force until 2033, covers 1,602 ha of grazing land on Chatsworth Station in the Shire of Cloncurry.

It will predominantly service the growing domestic demand for competitively priced fertilizers and is connected by road to all major agricultural regions in Queensland, Northern Territory and the far north of Western Australia.

Exploration at Korella started in 2007 and resulted in the discovery of a shallow phosphate ore body. A trial mining operation in 2015 recovered and stockpiled over 10,000 tonnes of direct-shipping phosphate from a shallow open cut. The stockpiled phosphate remains on-site and will provide early cash flow.

Korella phosphate is low-cadmium, direct-application phosphate with a low-carbon footprint suitable for general agriculture, as well as the organic and regenerative farming sector. Operations will function on a campaign mining basis, contract operated, delivering selectively mined phosphate to mine storage areas. Another contractor will crush on-demand to meet market requirements.

Production at Korella is expected to commence after the transfer of the lease to Chatham’s wholly owned Australian subsidiary, Avenir Makatea, trading as Korella Fertilizers. Additionally, exploration within the mining lease identified rare earth elements, including dysprosium (Dy), neodymium (Nd) and yttrium, which the company intends to monetize.


(Chatham Rock Phosphate Limited stock chart – October 2020 to October 2021. Click to enlarge.)

The company is currently finalizing a detailed capital budget for recommencement of mine operations. NZP stock is up 22% year-to-date and 69% since this time, last year.

The agribusiness is a life-sustaining operation, and there are many ways for investors to get in on a piece of the action. Chatham Rock Phosphate is a top choice for traders to deepen their due diligence. To understand the company’s business scenario and its constant improvements, traders should keep track of near-term developments this operation has planned.

For more on this company, visit rockphosphate.co.nz.




FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.



{{labelSign}}  Favorites
{{errorMessage}}

Comments

No comments yet. Be first to comment!

Leave a Comment

You must be logged in to be able to post a comment.

Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today