Chatham Rock Phosphate Limited Analysis

Overview

Chatham Rock Phosphate, listed on the Toronto Venture Exchange and the New Zealand Alternative Market under ticker code "CRP", is an exploration and development company focused on becoming a diversified phosphate developer and trader. CRP holds an offshore mining permit over part of the Chatham Rise that contains significant rock phosphate deposits and intends to recover these from the sea floor using a modified dredge.

Chatham Rock Phosphate Limited reports its results in Canadian dollars.

Chatham Rock Phosphate Limited is also listed on the Frankfurt Stock Exchange under ticker 3GRE.

Performance

The following information was extracted from Chatham Rock Phosphate Limited's full year report, released on 30 July 2024:

For the year ended March 31, 2024 the Group recorded a net loss before income taxes of $1,472,000 (2023: net loss of $1,771,000). Significant expense categories (apart from accumulated exploration write-offs and provisions) for the period are discussed in the full year report.

Additional Disclosure for a Venture Issuers Without Significant Revenue As the Company has had no revenue from operations since incorporation, the following is a breakdown of the material costs incurred for the years ended March, 2024 and 2023: General and Administrative Expenses: Management Fees $72,000 (2023: $135,000), Accounting $48,000 (2023: $25,000), Rates $39,000 (2023: nil), Motor vehicle $37,000 (2023: $38,000), Memberships $9,000 (2023: $11,000), Conferences and seminars $15,000 (2023: $10,000) and interest $6,000 (2023: nil).

General and administrative expenses decreased by $103,000 over the comparative period, due to various factors including: reduced available funding which led Directors to reduce their fees, the lease of land in Cloncurry for the future distribution hub, incurred interest expenses and rates where the comparative period had none.

Depreciation increased this year, primarily from the lease of land for the future distribution hub $37,000 (2023: $4,000). The Group has entered into a lease for Crown land on which to develop the Cloncurry Distribution Hub central to the Group’s Cloncurry phosphate projects.

Employee Wages and benefits decreased this year $130,000 (2023: $223,000) as employees’ hours were reduced and the amount paid to a Company Director decreased.

Legal fees have reduced in 2024 $260,000 (2023: $363,000) as the court proceeding against a third party for the acquisition of a phosphate mining lease was settled.

Exploration expenditures on the Company’s Australian interests consisted primarily of geological $113,000 (2023: $42,000).

Marketing cost have reduced $21,000 (2023: $53,000) due to less online marketing and advertising to assist with capital raising.

Rent has decreased in 2024 to $38,000 (2023: $80,000) as the Sydney office was closed during the year.

Liquidity and Capital Resources

The Company’s cash position as at March 31, 2024 was $110,000. Trade and other payables total $327,000.

The Company’s existing share, option and warrant capital structure is set out at the end of this report under the heading of “Supplemental to the Financial Statements”.