Centrex (ASX:CXM) share price rockets 200% on Samsung deal

Here's why this share is tripling in value today…

| More on:
Vanadium Resources share price person riding rocket indicating share price increase

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The Centrex Metals Limited (ASX: CXM) share price is having an incredible day on Thursday.

In morning trade, the phosphate explorer's shares are up 200% to a record high of 13 cents.

Why is the Centrex share price tripling in value today?

The catalyst for the rise in the Centrex share price on Thursday has been the release of a promising announcement.

According to the release, the company's wholly owned Agriflex business has executed a conditional term sheet with Samsung C&T Corporation.

Samsung C&T is a subsidiary of global behemoth Samsung and one of the world's largest traders in fertilisers. It has representatives in 73 offices in 43 countries around the world.

The release explains that the term sheet outlines the appointment of Samsung as its sole and exclusive marketing representative for sales into Korea, Japan, Indonesia, India and Mexico. The initial term is for the first three years of production from the company's planned 800,000 tonnes per annum at the Ardmore Phosphate Project.

Samsung will provide marketing services for sales of an annual quantity equal to the lesser of 20% of the product from the Project or 160,000MT. In addition, Samsung may also assist the company with sales of any additional quantity of product not taken by other off-takers.

The price to be paid by Samsung will be the market netback price. This is defined as the actual sales price minus direct costs and a marketing service fee.

The conditions precedent for the agreement include Agriflex's final board approval to proceed with the construction of the Ardmore Phosphate Project's 800ktpa plant, Samsung's internal corporate approvals, Agriflex's financial close in relation to the financing arrangements for the Project, and the commencement of production from the plant.

Centrex also revealed that it is in advanced discussions with a number of other Australian and international potential customers. It intends to keep the market informed as these develop.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another momentous session for ASX shares this Friday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why BHP, Catalyst Metals, Mesoblast, and Pilbara Minerals shares are shooting higher

These shares are ending the week with a bang. But why?

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »

A businessman stacks building blocks.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares hit a new record high today.

Read more »

A man sees some good news on his phone and gives a little cheer.
Share Gainers

Why Auckland Airport, Australian Ethical, Breville, and Clarity shares are charging higher

These shares are having a better day than most on Thursday. But why?

Read more »

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a day to forget this hump day.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why Droneshield, Meteoric Resources, Mount Gibson, and Tyro shares are charging higher

These shares are having a good time on hump day. But why?

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX was back in the black this Tuesday.

Read more »