Annual Report to Shareholders 30 June 2016
- Organic certification of Fertoz's phosphate rock as an input supply in the production and/or processing of organic agriculture products.
- Agronomy, sales and marketing capabilities secured through a partnership with an experienced team.
- Memorandum of Understanding signed for the sale of 2,000 tonnes of phosphate rock per year subject to completion of farm trials.
- Four groups committed to field trials in Saskatchewan and Alberta on wheat and hay crops for long term use, which will support the company's sales growth.
- Road Access permit secured from Ministry of Mines to access the Company's permitted 17,500 tonne bulk sample area and to be used for the planned 75,000 tpa operation once the small mine permit is approved.
- Fertoz's product is now in compliance with the requirements of the Canadian Organic Standards (COS) and the USDA National Organic Program.
- Signed first sales agreement to supply 2,000 tonnes of rock phosphate.
- Crushing and pulverizing tests successfully completed, which produced 1,700 tonnes of rock phosphate ready for field trials and sale.
- Significant progress on Wapiti permitting and First Nations relationships.
- Fernie Phosphate Project expanded by adding a highly prospective tenement at Mt Lyne, in the Elko region of BC with similar potential to the Company's existing properties.
- Focus on cash flow generation through asset building and sales.
- Obtain approval at the Fernie Project to continue exploration and development and extraction of material utilising the Company's 10,000 tonne bulk sample permit.
- Finalise large scale trials on several crops and on various soil types
- Focus on sales and the building of a meaningful agricultural supply business in the years ahead based on user trust, which fosters repeat and steadily increasing seasonal orders
- Obtain the small mine permit at the Wapiti Project for total production of 75,000 tonnes of rock phosphate product per annum.
- Execute exploration program at Wapiti and Fernie Projects, at which the Company has identified several drilling-ready targets over current resource extensions.
- Test a wide range of blends of rock phosphate with products synergistic to rock phosphate such as sulphur and humates which have been demonstrated to improve the available phosphate and uptake in plants.
The Company's key objective is to become a growth-oriented, cash flow generating agribusiness returning dividends to shareholders. In the near term, the Company plans to accomplish this through:
1. Focusing on our own assets: building sales, production and cash flow from our two projects in British Columbia, Canada;
2. Proving up potentially larger assets within our portfolio: through exploration at Wapiti and Fernie Projects, where we have identified several drilling-ready targets over current resource extensions;
3. Improving the returns and growth potential of our existing FertAg business in Australia; and,
4. Considering external growth opportunities: adding low capital-intensity fertiliser assets that can be realistically funded and developed.
Our number one priority is to develop our Wapiti and Fernie projects and this is where our effort will be concentrated.
In the short term, Fertoz intends to focus on two critical items: proving out our model through field trials, growing our sales; and, building out the required infrastructure for our flagship project, Wapiti, to allow us to maintain a steady supply of rock phosphate to a fast-growing, under-serviced organic market.
The Company has begun its transformation to a cash flow generating business with the progression of road construction at Wapiti where it will extract material by taking advantage of its 17,500 tonne bulk sample permit. The Company's small mine application for 75,000 tonnes per annum, once approved, in conjunction with mine development currently underway will provide the Company with its first long term supply of fertiliser products.
Fertoz expects to be the only producing phosphate mine in Canada and, with our certification as an organic input fertiliser in the US and Canada, we can continue to expand our strategic advantage with other expansion opportunities within our existing portfolio or through well-timed and opportunistic acquisitions which complement the Company's geographical positions or product offerings.
The Company is well placed to take advantage of the growing organic market which, in turn, should lead to significant returns for our shareholders and partners.
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About Fertoz Ltd
Fertoz (ASX:FTZ) is an Australian-based phosphate exploration and development company with a range of projects in British Columbia, Canada as well as Queensland and the Northern Territory. The Company is focused on becoming a fertiliser producer as quickly as possible, initially focusing on the Canadian/USA markets.
Fertoz plans to develop its exploration assets in Canada in order to identify any potential Direct Shipping Ore (DSO) projects. It intends to seek joint venture partners to assist in funding the exploration projects in Australia.
Phosphate is a commodity necessary for feeding the world, and Fertoz is ready to capitalise on this growing demand.