Radio NZ coverage of Edison research report on CRP
/CRP report audio starts at 4 minutes 58 secs
Radio NZ business news interview with Chris Castle on the Edison research due out shortly
/Radio NZ business news interview with Chris Castle on the Edison
research due out shortly. The item is about 8 minutes 30 seconds into
the bulletin.
Chatham Rock Phosphate shareholders unanimously approve share issues
/Special Meeting Result
Chatham Rock Phosphate Limited (NZX: CRP) advises that all resolutions before the Special Meeting today have been passed and it has issued new ordinary shares to Subsea Investments II, LLC (Subsea), Boskalis Offshore B.V. (Boskalis), and the Directors of CRP in lieu of directors’ fees.
Issue of shares to Subsea
CRP has today issued 16,867,592 shares to Subsea at an issue price of $0.20 per share.
In April 2012, the Company entered into a convertible loan agreement (CLA) with Subsea. Under the CLA, Subsea had advanced and was owed NZ$3,373,518.37 (Balance).
At the special meeting held today, the Board of CRP sought and obtained shareholder approval in accordance with Rule 7(d) of the Takeovers Code to convert the Balance to ordinary shares. Accordingly, in satisfaction of the Balance, CRP has issued 16,867,592 shares to Subsea at a conversion price of $0.20 per share.
This issue increased Subsea’s shareholding in the Company to 28.8%.
Issue of shares to Boskalis
CRP has today issued 10,595,638 shares to Boskalis at an issue price of $0...22 per share.
In July 2012, CRP entered into an investment agreement with Boskalis Offshore B.V. (Boskalis). Where, subject to shareholder approval, shares are to be issued to Boskalis so that it has a 19.99% shareholding in the Company.
At the special meeting held today shareholder approval was obtained. Accordingly, CRP has issued 10,595,638 shares to Boskalis at an issue price of $0.22 per share.
This issue increased Boskalis’ shareholding in the Company to 19.99%...
Issue of Shares to Directors in lieu of Fees
CRP also advises that it has today issued 120,688 ordinary shares under NZAX Listing Rule 7.3.7 to its directors at an issue price of $0.232 per share in satisfaction of directors’ fees owing to 30 September 2012.
Full particulars of today's share allotments follows below.
Chris Castle
Managing Director
Email: chris@crpl.co.nz
Class of security: Ordinary shares
ISIN: NZWENE0003S0
Number issued: 27,583,918 ordinary shares
Issue price: 16,867,592 ordinary shares at $0.20
per ordinary share 10,595,638 ordinary shares at $0.22 per ordinary
share 120,688 ordinary shares at $0.232 per ordinary share
Payment in cash: Yes
Fully paid: Yes
Percentage of class: 27.75%
Purpose of the issue: For working capital purposes, in payment of fees under a contract for services, and in lieu of payment of directors’ fees
Authority for the issue: Board resolutions and shareholder resolutions
Date of issue: 24 September 2012
Total number of securities on issue following allotments: 126,960,444 ordinary shares
Major economic benefit for NZ from Chatham Rock Phosphate project
/5 September 2012
New Zealanders will be $1.3 billion better off as a result of developing the Chatham Rock Phosphate resource, a study by the New Zealand Institute of Economic Research says.
The highly respected economic research agency was commissioned by CRP to study the economic impacts of its project to develop a seabed phosphate resource on the Chatham Rise. The report is supporting the company’s mining licence application to New Zealand Petroleum and Minerals. An environmental analysis by NZIER is underway.
“Implementing the mining project over 16 years is equivalent to the country becoming $1.3 billion richer today,” the report said. “At least $800 million of that welfare will accrue to people with no ownership in CRP.” On an annual basis it represents a wealth injection of $180 million a year, of which $115 million benefits non-owners of CRP.
The company will be applying for a mining licence within a few weeks to develop a 25 million tonnes rock phosphate resource located at a depth of 400 m on the Chatham Rise, 450 km from New Zealand and 150 km from the Chatham Islands. A marine consent, covering environmental issues, will be sought once the regulations are completed for the newly enacted EEZ legislation.
CRP expects the project to increase New Zealand’s exports of rock phosphate by $230 million a year and substitute for $110 million of domestic imports annually. CRP’s injection of wealth creates flow on effects that generate another $80 million in other non-phosphate exports. “The increase in household incomes generated by the extra wealth allows imports to rise by $170 million over and above the direct impact of CRP.”
The project will generate $300 million of export revenue for each of the 16 years of production, boosting GDP by $380 million. It will also remove New Zealand’s dependence on imported rock phosphate, of which New Zealand imports at least $185 million annually.
“The economic cost of the operation is primarily in the penalty our exporters pay from an appreciation in the dollar. However that penalty is small and the appreciation allows New Zealanders to obtain cheaper goods from overseas.”
The report notes the benefits are sensitive to world demand for rock phosphate. The scenario does not include the investment or environmental costs of the project (which is being assessed separately) and assumes that the increase in domestic production does not reduce the price of rock phosphate.
CRP managing director Chris Castle said the economic benefits of the project speak for themselves:“The project will reduce imports and increase exports of rock phosphate. It will also mean we reduce commodity price risk, foreign exchange fluctuations and security of supply from politically unstable countries and promote a new industry for New Zealand with skilled technical and support roles.
“While our shareholders will benefit, other New Zealanders benefit even more. Not only are there significant economic benefits, there are also strong environmental advantages.”
The NZIER report looks at the direct and flow-on effects of the project including $105 million in profits for CRP, $32 million in tax and royalties, $38 million in transport and $190 million in costs, as well as downstream spending by households.
(To read subject report click here)
Chris Castle, managing director Chatham Rock Phosphate
021 558 185, chris@widespread.co.nz, www.rockphosphate.co.nz
Edison research says risks for Chatham Rock Phosphate continue to reduce
/22 August 2012
Independent research on Chatham Rock Phosphate (CRP) prepared by Edison Investment Research (Edison) says the most significant risks relating to the project are easing.
“CRP is moving closer to demonstrating a commercially and technically viable undersea mining project, risks still remain but the most significant are easing.”
“Doubts over the technical viability of undersea seabed mining at the depths CRP is contemplating have reduced substantially, with global dredging major Boskalis taking an equity stake in CRP.
“The other main risk, mining and environmental approvals, will be CRP’s major focus over the coming 12 months.”
CRP commissioned Edison to produce independent research because share-broker analysts do not research the company.
CRP managing director Chris Castle said a summary report is included in Edison’s Asia Pacific quarterly report issued this week. A full report on CRP will be available early next month.
He said he valued Edison’s independent assessment and believed CRP has a strong story to tell. It would inform investors both in New Zealand and internationally and CRP could be measured against a range of international companies.
Edison is a leading international equity research company providing independent research on small and medium sized listed companies for institutions and investment advisers. New Zealand has more than 200 companies listed on the NZX, NZAX and Unlisted exchanges but analysts generally only research the top 50.
Edison is one of the largest independent investment research companies worldwide with more than 350 corporate clients, including a big focus on mining research with nine dedicated mining analysts and coverage of 75 mining companies on major exchanges.
Edison sends its research directly to a relevant international investor audience and provides readership data to its corporate clients. The research reports are distributed to a global database of professional investors, advisors and analysts in major financial centres world wide, plus organisations like Bloomberg, Reuters, Factset and Yahoo Finance.
To read the report go to http://rockphosphate.co.nz/reports/archives/2012/08/22/edison-research-crp-de-risking-continues/
Chris Castle - Managing Director CRP
+64 21 55 81 85 or chris@widespread.co.nz
+64 21 5581985
chris@crpl.co.nz
PhosphateKing