Centrex (ASX:CXM) exports its first 5,000 ton of phosphate rock to New Zealand

Queensland-based phosphate rock producer Centrex (ASX:CXM) announced that it just sent its first international shipment of phosphate rock overseas. Agricultural Cooperative Ravensdown, based in New Zealand, is the recipient of this first shipment that was sent FOB from Townsville. This shipment was sold back in April as a trial shipment.

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Investors were happy with the news and sent the shares 7% higher. In the last 2 months, CXM shares traded around 13.5 cents, but may head higher as the company keeps announcing good news around shipments, domestically and internationally.

Centrex is expected to partly replace phosphate rock shipments from Morocco to Australia, New Zealand and Asia. As such, Centrex will be a key contributor to reducing Australia’s dependence on overseas phosphate. This is particularly important in light of the Russian/Ukranian war that has resulted in substantial phosphate price rises.

First product out of Centrex’s Ardmore mine was shipped in early October, but we’ll have to until the company’s quarterly statement at the end of January to see what the actual selling price was. Phosphate prices have gone up very substantially in the last year, with Morocco phosphate rock prices now above US$300/tonne. If CXM can manage to sell its product at  similar prices, we expect the share price will go a lot higher than where it is today.

Stocks Down Under subscribers can read our recent article on Centrex here.

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