# CXM - Centrex Limited



## j4mesa (31 May 2007)

Hi all,

Just a thread starter,this share has been in uptrend for couple of days .....
Has got an agreeement with some Chinese big guns in the steel industries . Worth to have a look .

Just sold the oppies............have sold the shares ages ago 
I tried to upload the chart, but not able to as the file size was too big......


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## j4mesa (4 June 2007)

Look it is up by almost 30% today until 55 cents after entering agreements with the shenyang steel, baotou steel.


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## surfingman (25 July 2007)

*CXM Centrex Metals*
All information taken from company website and ASX announcements unless otherwise stated.

*Shares on issue*: 216,243,701 (Quoted and Unquoted)
Options: 56,303,056 (Quoted and Unquoted 20 cents ex)
Total include options: 272 546 757

*Market Cap *
60 Cent including options = $163.5 mil

*Cash *
$8.66 mil in bank as of march quarterly
+ $11.26 mil when options are exercised

*Top 20 shareholders hold 83.97% Very Low Liquidity*
2nd BAOTOU IRON & STEEL holds 10.13% 
Baotou is part of the Baogang Group based in Inner Mongolia and is the tenth largest steel producer in China (producing over 8 million tonnes per annum of steel products) with assets of approximately 30 billion yuan (approx A$5 billion) and over 300,000 employees.

*Directors*
Nothing needs to be said about this team they defiantly have what it takes.

Mr Gerard Anderson is a geologist with over 30 years experience in exploration and mine geology. His first 10 years was spent working for Mt Newman Mining Company and BHP Pty Ltd first as an iron ore exploration geologist then as a senior project and senior resource geologist working on most of BHP’s Western Australian deposits including Koolan Island, Deepdale’s K & J Deposits, Bungaroo Creek and Jimmawarrada Creek, Yandi Deposit and Mt Newman’s Eastern ore bodies.

Mr Norton Jackson Diplomas and degrees in mining, metallurgy and applied chemistry from Adelaide University and a Masters of Engineering degree from the University of Melbourne. He has served in milling, mining and mineral research operations in Australia and Fiji, and worked in the management of the American Cyanamid Company in Asia, Europe and North America for 20 years.

Mr Jackson has served on the Boards of numerous mining companies and academic and research organisations including Aberfoyle Limited, Poseidon Ltd, Australian Mineral Development Laboratories Australian Mineral Foundation and University of South Australia. He is a Member in the Order of Australia and a Fellow of the Australian Academy of Technical Sciences and Engineering.

Mr David Klingberg retired as Managing Director of Kinhill Limited in 1998 after 34 years experience in the management of professional engineering services to the general consulting and resource development industries in Australia and South East Asia. He has extensive experience in the mining industry including Project Manager of the Windarra Nickel project for Poseidon Ltd and responsible for significant projects for WMC and CRA Limited. He was Director of Bateman Kinhill and responsible for Kinhill activities on the Lihir Gold Project. 


*Wilgerup Hematite Deposit *
Currently the subject of a BFS (Bankable Feasibility Study) which is aimed to be completed January – February 2008. First shipment is planned for late 2008.

• North Pod JORC Resource 8Mt @ 59.8% Fe
• An additional 1.1Mt of Inferred hematite
• 3.2Mt of hematite clay and hematite carbonate
• Numerous residual gravity targets yet to be drill tested, additional infill drilling and Geophysical program to expand resource is currently underway.

There is a (HOA) heads of agreement in place for sale of 10 MT to Shenyang Orient Steel, Steel co Limited and Baotou Iron and Steel Group. This is through a delivery period of 5 years. 

HOA to rail 2 Mtpa to Lincoln Port currently in place, and also Ongoing negotiations with ABB Grain Limited (port infrastructure owner) and Flinders Ports (wharf and land). Both want to develop minerals capability at Port Lincoln.

2008 Sale Price taken from link below page 2 
(http://www.mtgibsoniron.com.au/uploads/MGX 01 03 07.pdf)

Lump US$/T $55.70
Fines  US$/T $ 44.70 (will assume will all be in fines which it wont be)

NPV 12% discount
Year 1  = 2MT * $44.70 =  $89 400 000 = $79 821 428.57
Year 2  =  $89 400 000 = $71 269 132.65
Year 3  =  $89 400 000 = $63 633 154.15
Year 4  =  $89 400 000 = $56 815 316.21
Year 5  =  $89 400 000 = $50 727 960.60
Total = $US 322 266 992.18
NPV = $US 1.18 per share 

Not incorporating Costs of production, transport and Infrastructure (Cant put a value on this at the moment.) + increase over 10MT JORC

*BUNGALOW MAGNETITE*
Bungalow has the potential to support a long-life 3-5 Mtpa magnetite concentrate operation and the recent drilling heralds the commencement of a systematic resource evaluation of the deposit. The Bungalow magnetite deposit has been independently assessed as having an exploration potential of >250 million tonnes of magnetite BIF to a vertical depth of 200 metres. The recent drilling supports this assessment of tonnage potential (results have not been released to market).

A Memoranda of Understanding with Baotou Iron & Steel (Group) Co. Ltd and Shenyang Orient Iron & Steel Co. Ltd covering the Bungalow/Minbrie magnetite deposit. Representatives of Baotou Iron & Steel (Group) Co., Ltd will visit South Australia from 12th – 27th July 2007 to conduct a detailed due diligence on the Bungalow Magnetite Deposit.

*Summary of inferred BIF resources and exploration targets (2006 version):*
The reason I have included this table is so I can compare the Inferred to the JORC findings and see if they are close, this shows strength of the experience and knowledge. Wilgerup has exceeded Inferred with the JORC and looking to expand JORC. There is plenty of potential for the next 12 months will be very interested in the Baotou Iron outcome from the recent visit, potential to put Bungalow into a production play which would bring large upside.
http://www.centrexmetals.com.au/projects/projects.html
Scroll down to find the table of projects, cant copy and paste sorry!!!

In early 2002 Portman Limited, through its wholly owned subsidiary South Australian Iron Ore Group Pty Ltd (SAIOG), applied for iron ore tenements on Eyre Peninsula. In April 2002 SAIOG and CXM entered into a joint venture in which SAIOG was to conduct exploration of the magnetite resources on CXM and SAIOG tenements to evaluate the potential to establish a stand alone magnetite operation. SAIOG spent over $2.0 million in exploration but subsequently withdrew from the joint venture. Portman Limited determined that the indicative economics for a magnetite concentrate operation based on known magnetite deposits and the prevailing iron ore prices, did not meet corporate targets. 

As a consequence of SAIOG withdrawing from the joint venture, SAIOG was acquired by CXM and is now a wholly-owned subsidiary of CXM. The Company and its subsidiary are the registered holder of, and are entitled to exploit iron ore on a number of exploration licences covering an area of over 2,000km² over known iron ore deposits and prospects on Eyre Peninsula, South Australia.

Lincoln Minerals has acquired rights for all minerals except Ferrous Metals from Centrex Metals. Centrex Exploration Limited and subsequently on 12 September 2006 changed its name to Lincoln Minerals Limited. A sum of around $200 000 was lent to Lincoln by CXM, with an interest payment + full sum on float. 

The only link between the 2 companies I can find is South Cove LTD which is the number one share holder in both the companies, creates a few questions.
 1/ LML is a CXM spin off but no info has been released by Centrex that I can find. 

I have tried contacting CXM via email but keep getting undeliverable return. 

The owner of South Cove is Graham Chrisp who is number 1 share holder in Lincoln Minerals, Centrex Metals and Australasia Gold.

Whats everyones thoughts?


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## surfingman (25 July 2007)

The Magnetite project is where the real results will move from:
Average 67.66% fe
(YT’s FWL price) EBIT $165/t x 3 -5 MT operation (say 3 MT)
= $495 000 000 per year EBIT

CXM would get at least 30 - 40 years from the project at this rate + surrounding tenements they own.

The Men with the money are in town till Friday will be keen to hear some news soon, a large company doesn't buy 10% of a company unless they have done there homework and have some serious intentions, I would like to think the consolidation of late will work as a support, it's shown support today around the 59 - 60 cent mark.


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## Lachlan6 (25 July 2007)

(CXM) technically sound as well. Missed the breakout on these ones on the 20th. May retrace back to around $0.55 before a run higher however I probably will not wait for this and may get in tommorow. A little hard strapped for cash at the moment however as fully invested. Eventual target $0.92, being the 100% markup from the March lows to June highs and added to the June lows.


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## jammin (25 July 2007)

Lachlan6 said:


> (CXM) technically sound as well. A little hard strapped for cash at the moment however as fully invested. Eventual target $0.92, being the 100% markup from the March lows to June highs and added to the June lows.



I think there may be a few ASF members who are fully invested at the moment, (with a high weighting to the iron ore sector). I certainly am. That chart looks like a classic example of a consolidation half way through a major trend. Accordingly I agree with your forecast. With the trend so strong I would not expect the retrace of the last 2 days to continue down to support of 0.55. The low of today 0.59 may be as far as the retrace goes (approximately 50% of the breakout of the 23rd and 24th July).
Thanks for the F/A Surfingman, keep riding the iron ore wave.


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## Synergy (27 November 2007)

Does anyone follow this stock?

CXM into a trading halt this morning after a couple of positive anns yesterday. Wondering what it could be for...


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## Datsun Disguise (11 May 2008)

Seems the answer is no Synergy - given the 6 month wait to get a reply to your Q.


Perhaps a few more should. Moving to producer (first ore from Wilgerup) at the end of the year. A low operating cost of $35 / tonne projected spot prices are what? $170 - 180/tonne?. This should all be confirmed when the feasibility study is realeased in a couple of weeks. There is also a bit of exploration that will be reported on over the next few months. Chart is moving the right way (but aren't they all these days...). Market cap is $131m - cheap? Hmmm dunno. NPV of the Wilgerup is quoted as $175m - but there's more....

Given that their tenements are close to the coast - and they have the port at Proper Bay to utilise, they should be a reasobaly low cost producer. The Bungalow magnetite (hematite potential) anomaly is >800m wide and 18km long. lotta dirt. 

SO, anyone with the time to do a full research work over interested? (Yeah yeah - DYOR I know, but dammit I just don't have the time)


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## lucifuge (12 May 2008)

I only did a quick read,  but the explorer to producer, current price and potential is too good to be ignored. I jumped on today. I will do my reading later. The current breakout is extremely bullish.



Datsun Disguise said:


> Seems the answer is no
> Synergy - given the 6 month wait to get a reply to your Q.
> 
> 
> ...


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## sharechaser (10 July 2008)

Been looking back over this stock recently as it gets closer to production. Bit a bit of a rap in a speculator article on News.com.au ---> 
http://www.news.com.au/business/money/story/0,25479,23976885-5013953,00.html

I'm a long time/long term holder and believe this stock has a lot of upside potential, particular with it's short time to production (for the Wilgerup deposit) and it's closeness to the coast.

Any one else been following this stock recently?


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## happytown (1 May 2009)

from recent anns

progressing with the wuhan (50/50) jv (magnetite)

transaction documents negotiations expected to be completed by 10/05

documents finalised and signed by may/june

$59.5M payable to centrex within 7 days of signing

then placement to wuhan of 40M shares at 25c, additional $10M

(firb approval required for 50/50 jv)

as at 31/03 approx $10M cash in bank

100% owned wilgerup (hematite) mining project permits expected to be granted this month

wuhan jv payments will fund the wilgerup project (first wilgerup shipment not expected to commence until 05/2010 and thence at 1.6M t/year)



> The WISCO Joint Venture values Centrex’s five southernmost tenements (five of fifteen) at $360 million. Centrex’s market capitalisation is ~$50 million.



cheers


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## Touch of Gold (6 May 2009)

looking really good, shifting from 2nd Gear to Third, all starting to come into place. If we don't have new world disasters, CXM will outperform most stocks for the next 2 months....


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## prawn_86 (6 May 2009)

Touch of Gold said:


> If we don't have new world disasters, CXM will outperform most stocks for the next 2 months....




And how do you reach that conclusion...??

Please give some analysis with your posts or they will be removed.


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## happytown (7 May 2009)

centrex ann

trading halt regarding jv ann with wuhan expected to be released mon



> ... The directors expect the announcement regarding the successful completion *or otherwise* of the transaction documents with wisco and the expected date of execution of those documents will lift the trading halt ...



the 'or otherwise' is intriguing

the co had previously stated that wisco had requested an extension for discussions to 10/05 whereupon they expected finalisation of said discussions

as previously mentioned wilgerup mining permits are also expected this month

cheers


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## happytown (11 May 2009)

jv update ann out this morning

could be a little clearer about a number of points

key points

50/50 jv now 40/60

centrex to be paid an additional $6M for giving up that additional 10% (at an apparent discount - $180M 50/50, now $186M 40/60)

some minor variations to the scheduled amounts to be paid (eg 1st payment now $52M as opposed to $59.5M previously)

subscription of approx 10M shares at 25c

woo-hoo-han to pay $75M into jv to fund exploration etc

re clearing up a couple of points

is this now the finalised agreement, has it been signed off on, is it now legally binding and what does this mean as to the completion date

is the $75M for exploration completely separate from the $186M for iron ore rights (this amount has not previously been mentioned and if so appears to enhance the jv)

cheers


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## happytown (14 May 2009)

ann out,



> Centrex Metals Limited (Centrex) is pleased to announce that an offer for a 10 year Mining Lease for the Wilgerup Hematite mine, located 30 kms south east of Lock on Eyre Peninsula, has been signed and received from the office of the Minister for Mineral Resources Development in South Australia. The Mining Lease offer marks the penultimate step in the company’s progression from explorer to producer on Eyre Peninsula.
> 
> The offer of a Mining Lease includes specific site environmental and operating conditions that must be accepted by Centrex for the Mining Lease to be registered by Primary Industries and Resources South Australia (PIRSA). Centrex has reviewed the site specific lease conditions and believes they represent sound industry practices and do not present onerous requirements upon the company.
> 
> ...



so centrex now has to agree to the conditions laid out in the mining lease, successfully submit the marp and get the tick for the da to export the iron ore from the mine to the port (which is expected in the coming weeks) and they will be the next to move from explorer to producer

... not that the market is likely to notice  

cheers


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## happytown (12 June 2009)

it has taken wpg just over a month to proceed from heads of agreement to signed transaction documents re their jv with wisco

meanwhile centrex ...

indeed centrex have a pretty laid back approach to getting jv's over the line

wisco yet to be finalised (expected to be completed no later than july; nb heads of agreement signed last december);

and bautou jv which some 2 years later is still to be finalised (and as of nov '08)



> ...
> 
> negotiations have since continued to formalise the jv documentation, however there are some areas cxm is still not happy about and discussions are continuing ... from the cxm point of view we intend to maintain our position to secure a jv which is in the best interests of our shareholders
> 
> ...



cheers


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## happytown (18 June 2009)

brief update on centrex

shares - 269,330,665

options - 1,000,000 @ .20 30/06/11; 2,475,000 @ .20 30/06/11 (employee)

current share price .28

MC approx $76.4M

cash at end of quarter $10,058,000 (from 3rd qtr report - up to 31/03/09)
cash outflows for current quarter $899,000

expected cash at end of current quarter $9,159,000

cxm currently has no loans or borrowings

top 20 shareholders hold > 85% of shares
 
EV = MC - cash + debt; 76.4 - 9.15 + 0 = $67.25M

[note when wisco jv trans docs finalised by july (and for current purposes assuming sp @ .28 and additional 40M shares issued), EV = MC ($87.6M) - cash ($70.65M) + debt ($0) = $16.95M]​ 


14 tenements covering approx 2,000 sq kms

projects:

1) wilgerup - (EL 3317, cxm 100%)
 
14.1Mt hematite jorc resource (13.3Mt @ 57.7% fe, 4.8% sio2, 2.8% al2o3, 5.0% loi, 0.51% p indicated [including 10.4Mt massive hematite @ 59.7% fe, 3.6% sio2, 2.3% al2o3, 4.6% loi, 0.49% p]; 0.8Mt @ 56.6% fe, 5.2% sio2, 2.5% al2o3, 4.0% loi, 0.57% p inferred), from the wilgerup north pod only (several other targets on this EL)

centrex recently received an offer of a 10-year mining lease (with conditions that cxm believes it will accept), cxm to submit a mine and rehablitation plan for approval by pirsa (cxm recently [march] applied for an ELA contiguous to 3317)

pre-sold under HoAs and linked to international benchmark prices (baotou to take up to 1M t p/a, also shenyang ), cash operating cost $38/t FOB; total cost $42/t FOB  

ore to be mined via open cut methods (20 - 25 m pre-strip of sand cover), crushed and screened into lump (+6.3mm -31.5mm) and fine products (-6.3mm), ore road trained 18km to a new rail siding, railed to Port Lincoln using 56 wagons, train schedule calls for 1.7 trains per day carrying a total of 4,400tpd, for direct loading onto Panamax vessels (75,000dwt), export target is 1,600,000 t p/a, mine life 6.5 years

export via port lincoln - modifications at Port Lincoln: rail unloader #2, conveyor to the storage shed, existing Block 5 fertilizer shed (110,000t storage capacity) concrete reinforcement to load-bearing walls, tripper conveyor, negative pressurizing and dust collection, “pouch" conveyor, new shiploader and conveyors completely independent of ABB infrastructure, panamax (75,000t) ships every 18 days

port lincoln wharf da for export cxm confident of approval june, 9-12 months construction period

first shipments expected mid-2010

it is intended that wilgerup will be 100% self-funded by the wisco jv payments


2) cxm/wisco jv (ELs 3611(greenpatch), 3421(dutton bay), 3269(wanilla), 3731(carrow), 3877(mount hill) cxm 40%/wisco 60%)

wisco to pay cxm $186,000,000 for 60% iron ore rights, made up of:

$500,000 non-ref deposit paid to cxm 24/12/08

$51,500,000 payable on completion date (of jv agreement - expected to be finalised no later than july)

$26,000,000 payable 12 months after completion date

$27,000,000 payable on jorc inferred resource of 1.25Bt magnetite bif

$27,000,000 payable on jorc inferred resource of 1.50Bt magnetite bif

$27,000,000 payable on jorc inferred resource of 1.75Bt magnetite bif

$27,000,000 payable on jorc inferred resource of 2.00Bt magnetite bif

cxm expects to finalise and sign the Transaction Documents no later than July 2009
 
wisco to pay $75,000,000 into jv for exploration and study costs

stage 1 scope for exploration and studies is to develop 2 x 5Mt magnetite concentrate operations, with drilling at the priority Carrow deposit planned to commence July 2009, will accelerate resource evaluation of the Carrow deposit (projected 5Mtpa output), further drilling, pre-feasibility and a Bankable Feasibility Study will be completed by Q1 2012, with project to begin construction in 2012 (carrow to be first 5Mtpa project, bald hill/charlton gully second 5Mtpa project) 

a review of these tenements has established a magnetite exploration target of 1,086Mt - 2,282Mt, [cxm 40% = 434.4Mt - 912.8Mt] to a depth of 200m (note: these tenements are highly prospective for hematite which has not been currently taken into account), comprising:

EL 3877 mt hill 266Mt - 1,048Mt (no historic drillholes);

"" ""  bald hill 257Mt - 325Mt (2 historic drillholes, av 27.7% av DTS, 66.4% av wghtd Fe, 6.3% SiO2);

EL 3731 carrow 86Mt - 110Mt (15 historic drillholes, av 31.21% av DTS, 69.12% av wghtd Fe, 2.51% SiO2);

"" ""  iron mount 26Mt - 39Mt (1 historic drillhole, 37.16% av DTS, 63.52% av wghtd Fe, 7.44% SiO2);

"" ""  brennand 40Mt - 176Mt (1 historic drillhole, 25.4% av DTS, 69.39% av wghtd Fe, 2.47% SiO2);

"" ""  koppio 57Mt - 74Mt (2 historic drillholes, av 29.7% av DTS, 67.54% av wghtd Fe, 5.6% SiO2);

EL 3269 charlton gully 244Mt - 290Mt (no historic drillholes);

"" ""  greenpatch 78Mt - 163Mt (11 historic drillholes, av 27.47% av DTS, 68.99% av wghtd Fe, 2.62% SiO2);

EL 3421 dutton bay 32Mt - 57Mt (no historic drillholes) 

the review further assessed targets to a depth of 250m as 1,421Mt - 3,006Mt [cxm 40% = 568.4Mt - 1,202.4Mt]

wisco to purchase 40M shares @ .25 for $10,000,000 - on the completion date of the jv trans docs (no later than july) wisco will subscribe for the 40,000,000 shares

50/50 jv to develop deep water port at sheep hill - wisco to arrange project finance for cxm if required

cxm 100% ownership of 260 acres of absolute gulf-front land (>18m water occurs within 450m of the shoreline) bought for the purposes of building a Cape capable port 18m deep water (at low tide) within 450m of the shoreline will enable direct loading of Cape sized vessels (160,000 –240,000dwt capacity) from a short jetty

low Capex urs estimate $95 million for off-shore infrastructure (jetty, berth and ship loader), total costs for port including initial shedding and road/pipeline access approx $150 million

ongoing discussion with native title claimants Barngarla and Nauo NT Claimants conducted a clearance survey in Sept 2008, the report has been withheld by the Barngarla legal representative

location central to several magnetite deposits with aggregate exploration potential in the billions of tonnes - 20kms from Carrow magnetite deposit, located close to the Eyre Peninsula rail network - a 27km spur line from Ungarra to Sheep Hill would connect the port to the entire Eyre Peninsula narrow gauge network

the development application is scheduled to commence in july 2009, will be completed by december 2009

cxm/wisco jv firb approval required - applications to the Foreign Investment Review Board and the National Development Reform Commission will be submitted in May 2009 [this has not yet been confirmed, most likely on finalisation of jv trans docs], the approval times for both the NDRC and FIRB are not known at this time but both companies believe that government consents and permits could reasonably be expected by mid-July 2009

cont'd/


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## happytown (18 June 2009)

3) bungalow cxm/baotou jv (EL 3610 cxm 50%/baotou 50%)

(note: this jv discussion has been ongoing since 2006 and is yet to be finalised)

baotou to pay up to $40,000,000 to cxm to cover exploration, drilling and a bfs

Stage 1 Exploration $8 million to earn 10% equity

Stage 2 Pre-feasibility $8 million to earn additional 10% equity

Stage 3 Feasibility $24 million to earn additional 30% equity to take equity to 50%

cxm appointed manager Stages 1 & 2 new co to be established at Stage 3

cxm to be reimbursed approx $2.8 million for expenditures made since signing original HoA

some 5,000m of drilling was carried out in 2008 on bungalow, providing for an exploration target of 127Mt - 417Mt [cxm 50% = 63.5Mt - 208.5Mt], with the potential to support long-life 3-5Mtpa magnetite project 

EL 3610 127Mt - 417Mt (5 holes, av 38.02% av DTS, 67.66% av wghtd Fe, 5.37% SiO2)

a jorc inferred resource was expected to be delivered early 2009 (still to be delivered), with a scoping level study due to be completed mid-to-late 2009 

firb approval will be required, baotuo has advised it has received all required approvals from chinese govt

re the ongoing nature of the jv, cxm have conceded that in retrospect thay may have approached this better:

"negotiations have since continued to formalise the jv documentation, however there are some areas cxm is still not happy about and discussions are continuing ... from the cxm point of view we intend to maintain our position to secure a jv which is in the best interests of our shareholders" (from chairmans address agm 28/11/08)

"conclude jv discussions with baotou or enter into new agreement" (agm pres 28/11/08)

as recently as 10/03/09:

"discussions are continuing and the company will update the market as developments occur"

and further at 30/04/09 (3rd qtr activities report):

"officials from centrex and baotou met in beijing from 9-11 march 2009 to progress talks for the bungalow joint venture and the wilgerup hematite sales and purchasing agreement the discussions resolved many outstanding issues in the transaction documents


4) cxm is in negotiations with a number of other parties in relation to some of the numerous other areas of magnetite potential (chairmans address agm 28/11/08) 

EL 3401 Lock;

EL 3375 Gilles downs;

EL 3948 Cockabidnie nth;

EL 3968 Kimba gap;

EL 3125 Ironstone hill;

EL 3999 Ironstone hut;

EL 3287 Stony hill


summing up:

DSO - 14.1Mt (with potential for more)
magnetite - target ranges from 497.9Mt - 1,121.3Mt to 631.9Mt - 1,410.9Mt (with other tenements prospective for magnetite not included and assuming both jv's proceed and cxm only entitled to jv%)
july expected to be an imortant month with several anns due - finalisation of jv with wisco, da approval for wilgerup export through pt lincoln


valuation

cash [includes initial wisco payment and $10M share placement, expected by july] $70.65M, approx .22 p share 

wilgerup (based just on the 10.5Mt massive hematite jorc indicated @ 59.7%, 30% lump, 70% fines @ .97 for fines and 1.12 for lumps [2009 hammersley contract price] equating to US$57.90p dwt for fines and US$66.86p dwt for lumps and aud/usd exchange rate @ .7993 [17/06/09] = $72.43 [fines], $83.64 [lumps] and total costs of $42p dwt) = $355,561,500 / 312,805,665 [includes 40,000,000 wisco shares] = approx $1.13 p share 

wisco jv [wisco 60% valued at 186M] $124M, approx .39 p share

baotou jv [baotou 50% valued at $40M] $40M, approx .13 p share

no price attached to remaining ELs

total approx $1.87 p share, current price .28 p share



[note if a value of just $1p dwt was placed on exploration targets as indicated above:

cash .22

wilgerup 1.13

wisco .39 + (1.39 - 3.84) = 1.78 - 4.23

baotou .13 + (.20 - .67) = .33 - .80

no price attached to remaining ELs

total approx = $3.46 - $6.38 p share]


please feel free to correct any errors of fact or assumption in the above​
cheers


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## lazyfish (18 June 2009)

Very good effort, but I think and CAPEX is missing from your calculations and are you sure the P level is 0.5%?


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## happytown (18 June 2009)

cheers lazyfish,

re the .5% p (at wilgerup), see the co ann dated 17/07/08 'increase in wilgerup indicated mineral resource'

re capex

- for wilgerup that is included in the co's figures of $42t costs (mining, crush/screen, transport, shipping, environmental etc) from the co's feb '09 broker presentation [i have assumed that the port lincoln refurbishment is included in this (shipping) as the co has not stated otherwise nor specifically provided separate figures for this] and further, they have stated that wilgerup will be self-funded from the wisco jv payments 

- for the magnetite operations, the only capex mentioned is up to $150M for sheep hill port (to be funded 50/50 [and owned] with wisco and wisco to assist with funding if needed) - as a consequence the (2) valuations of these only include, (the first valuation) a value based solely on the jv contributions, ie $186M [and ignoring the $75M wisco will be paying for exploration before cxm has to shell out 1c] for wisco's 60% and $40M for baotou's 50% and (for the second valuation) an additional nominal figure of $1 p dwt [neither of these valuations include the port capex, however i considered them to be sufficiently conservative and further, they are valuations solely of the exporation targets limited to half of their ELs]

if you have any ideas as to the capex beyond the above, feel free to re-crunch the numbers

cheers


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## happytown (9 July 2009)

according to information provided in previous company anns, the following anns should materialise this month:

da approval for exporting through port lincoln (100%-owned wilgerup dso)

finalisation of jv with wisco (wuhan) and second (and most significant) jv payment of $51.5M (40%/60% jv magnetite)

cheers


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## happytown (16 July 2009)

from a presentation to ausimm released today

as to the da for export of Fe through pt lincoln



> ...
> 
> The EPA has requested further information which we are in the process of supplying
> 
> ...



as to the wisco jv



> ...
> 
> Formal signing of Transaction Documents expected by *end of July* 2009
> Government consents and permits expected in *July/August* 2009
> ...



cheers


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## happytown (21 July 2009)

jv with wuhan (wisco) signed, with a change, the 1st instalment ($51.5M) to be paid upon govt approvals (expected in aug) rather than 7 days after signing



> Centrex Metals Limited (“Centrex”) and Wuhan Iron & Steel (Group) Corporation (“WISCO”) last night signed a series of formal transaction agreements that formalise the terms and conditions of the magnetite joint venture between the groups.
> 
> Key commercial terms:
> 
> ...



cheers


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## happytown (21 July 2009)

happytown said:


> ...
> 
> valuation
> 
> ...




more than happy too, happytown ,

ummmmm, you included the wisco 1st instalment twice ($51.5M)

so i did 

deduct approx .16 from the valuation please happytown 

okalee dokalee neighboureeno 

so a valuation of approx $1.71 then, currently .34

cheers


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## Donga (3 August 2009)

Thanks Happytown for your analysis on CXM. After reviewing the trail with the other contributors, I hopped on board at 27.5c just a couple of weeks back. Today 50c and be interesting to see when this one takes a breather.


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## happytown (3 August 2009)

cheers donga,

tightly held stock, top 20 own 80%+

there may be news this month re govt approvals and permits for the wisco jv from firb and the rest, which if approved would trigger the first substantial payment of $51.5M (to cxm)

possibly news also re the wilgerup export permit thru pt lincoln da

ann re cockabidnie rock chip samples today (first for this tenement), drilling planned, potentially adding to current dso jorc estimate for the region, by the time shipping begins in 2010



> ...
> 
> High grade hematite rock chip samples average 66.0% Fe; 4.0% SiO2; 0.60% Al2O3; 0.009% P
> 
> ...



cheers 

another quality post brought to you by happytown inc


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## happytown (12 August 2009)

according the the presentation ann released today, the da for fe export from wilgerup out of pt lincloln is expected to be decided tomorrow by the dac

cheers 

another quality post brought to you by happytown inc
pending shareholder approval


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## happytown (14 August 2009)

ann out this morning regarding the dac approval of the da for export of fe from wilgerup



> ...
> 
> Centrex was not present at the formal meeting and is not aware of the outcomes of that meeting. Furthermore, Centrex does not expect to be notified of the formal outcomes or recommendations from that meeting, but is waiting on the decision from the Minister. However the DAC website previously included the Development Case Officer’s recommendations to approve the proposal subject to certain operating and performance criteria.
> 
> ...



cheers 

another quality post brought to you by happytown inc
making up a mess of fun
tra la la la la la la la, tra la la la la la la la la


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## lazyfish (15 August 2009)

Hi sorry haven't checked this thread for a long time. My knowledge of iron ore isn't the greatest but having worked on few iron ore mine and having seen a few more, I don't know whether .5%p is marketable. I know there's fancy things like dephosphorization so I should say I am not aware of anyone selling any ore that's .5%P. Cheers.


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## happytown (17 August 2009)

lazyfish, fair point about high P %

however, regarding the marketing of centrex's wilgerup dso, *it has all been pre-sold under hoa's* with baotou iron & steel co ltd and shenyang orient iron & steel co ltd, who would be well aware of its fe and de content

cxm's chairman, commenting on the gfc in his 28/11/08 address (p 2),



> ...
> 
> 'depsite some gloom over iron ore contracts with chinese steel mills over the next year or two, we have had no indication from the chinese companies* who have agreed to purchase wilgerup ore* that they will not be proceeding'
> 
> ...



recent rock chip sampling from the nearby satellite cockabidnie potential dso prospect has averaged 0.009% P

cheers 

another quality post brought to you by happytown inc


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## lazyfish (17 August 2009)

Chinese mills normally do their own blending by sourcing ores from a number of mines. I think the ore from CXM probably only makes up a small portion anyway. The long term viability of this project seems to be dependent on management's ability to market this product to Chinese mills, because the high P makes the product itself quite unattractive. Just my opinion.


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## happytown (10 September 2009)

update on cxm

late last month, the long-awaited jv with baotou was inked (jv transaction docs), for the bungalow mag jv (50/50) [see ann 27/08/09]

also signed a sales agreement for wilgerup dso with baotou (getting rid of some of that pesky 0.5%P ore, lazyfish) [see ann 27/08/09]

awaiting ann from minister re wilgerup export da approval - expected anytime now

granted new el, in NSW, prospective for


> potentially ... economic iron ore mineralisation



 [see ann 09/09/09]

NSW the new SA, which was the new WA, when it comes to Fe 

cheers 

another quality post brought to you by happytown inc
now doing their own proofreading


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## Gillie (6 October 2009)

Heard a rumour that CXM has received court approval this morning, is anyone able to confirm this? - it isn't on market yet but the price is starting to move.


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## prawn_86 (6 October 2009)

Here you are Gillie and all those interested - http://www.news.com.au/adelaidenow/story/0,22606,26170709-2682,00.html


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## Gillie (6 October 2009)

Thanx for that Prawn...

Announcement just came through and they have gone into trading halt. Back on a 10:15am


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## Miner (22 January 2010)

Is there some one following CXM ?
How far is it really from execution.
If Port Lincoln was approved then why they are wasting money for a parallel port ? It is not cheap

DNH


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## Bigukraine (22 January 2010)

Miner said:


> Is there some one following CXM ?
> How far is it really from execution.
> If Port Lincoln was approved then why they are wasting money for a parallel port ? It is not cheap
> 
> DNH




Hi miner,
Pt Lincoln would be ok short term but long term would /may have impact on aquaculture in area CSS etc etc. Local bus. people have banded together and shown/ stated their disaproval in this venture in local adelaide paper about fortnight ago but has approval from our state gov. Other mining in the area would benifit from sheeps hill plus extra revenue for CMX and partners from port fee's. All info you require is in recent CMX 2009 report . Have a read it will answer all your questions and p.s report in local paper today on CMX re mgr stepping down as per asx ann. worth a read if you can get access to this paper (in bus. section) rgds bigu (not holding but watching closely.)  hope this helps


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## Miner (22 January 2010)

Bigukraine said:


> Hi miner,
> Pt Lincoln would be ok short term but long term would /may have impact on aquaculture in area CSS etc etc. Local bus. people have banded together and shown/ stated their disaproval in this venture in local adelaide paper about fortnight ago but has approval from our state gov. Other mining in the area would benifit from sheeps hill plus extra revenue for CMX and partners from port fee's. All info you require is in recent CMX 2009 report . Have a read it will answer all your questions and p.s report in local paper today on CMX re mgr stepping down as per asx ann. worth a read if you can get access to this paper (in bus. section) rgds bigu (not holding but watching closely.)  hope this helps




Thanks and it does help

I will query the guys at Adelaide to get hold of the news item unless some one posts here. 

Thanks again and it does make sense


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## springhill (6 April 2013)

CXM is piled fully to the MC with uncommitted cash, even after returning a special dividend, worth $15m+ fully franked, to shareholders earlier this year.

The potential and resources to become a truly great company are all there, only time will tell if they are able to make that transition.

MC - $51m
SP - 16.5c
Shares - 313m
Options - 3m
Cash - $49m

*The focus of CXM.*
• Three significant Chinese backed joint ventures covering iron ore, base metals and a deep-water port
• Acquiring more projects and seeking to form additional international partnerships
• Attracting foreign investment to fund project development and grow the business
• A$ 47.6M uncommitted cash after recently paying A$ 15.7M fully franked special dividend
• Developing cost effective infrastructure and export solutions for projects
• New representation in India to build an additional investment base

*CXM Projects.*
• Eyre Iron Joint Venture - 40% interest in magnetite iron ore projects with Wuhan Iron & Steel funding first $75M of development; 680Mt Mineral Resource at flagship Fusion project 
• Port Spencer Joint Venture - 50% interest in proposed deepwater port facility with Wuhan Iron & Steel to fund next $4M of development; State Government approval received
• Bungalow Joint Venture – Baotou Iron & Steel earning 50% interest by funding first $40M of development; 338Mt Mineral Resource
• Goulburn Joint Venture - Shandong 5th Geo-Mineral Prospecting Institute earning 35% for $2M exploration; ability to earn 80% by funding to production
• Wilgerup - 100% interest 13.3Mt Indicated DSO Resource
• Eyre Peninsula Exploration - 100% interest in iron ore rights to 7 licences in South Australia
• Gundaroo - Exploration Licence Application for NSW GoldBase Metals project near Goulburn


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## greggles (29 January 2018)

Just noticed that the CXM share price jumped up around 26% today. I took a look at Quarterly Activities Report released on Friday and noticed that the company has $17.5 million cash in the bank and no debt. It appears to be burning about $5 million a year at its current burn rate.

Its only active project appears to be the Ardmore Phosphate Rock Project in Queensland. The mining lease for this project was recently renewed for another 21 years. A Mineral Resource update released in December increased the total Mineral Resource to 14.2 million tonnes at 28.7% P2O5 (using 19% P2O5 cut-off).

The company claims that Ardmore is one of the few remaining undeveloped high-grade phosphate rock deposits in the world.

Not sure what to make of this one at the moment, but if they build a mine and get into production it could be a winner.


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## Craton (30 December 2019)

Drought and low prices of CXM products has seen the SP take a dive.
Taking a punt on an improvement in Jan 2020 and beyond.


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## Craton (30 January 2020)

Sticking with this stock for the Feb 202 Tipping Comp. Same reason as above but more so, QLD Ardmore project appeals.


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## Craton (25 February 2020)

Sticking with CXM again for the Mar 2020 Tipping Comp. With the coronavirus market "adjustment" around the globe the SP hasn't tanked as much as other stocks, must be a good sign.


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## Craton (20 November 2020)

Hmm, seems I've followed/tipped this stock before...

As per the recent announcement: Rights Issue

Centrex Metals Limited (ASX:CXM)
Results of Rights Issue
Centrex Metals Limited is pleased to advise that the Non-Renounceable Rights issue announced on 20 October 2020 (Offer) has closed and raised $638,720. In view of the fact that the Company’s major shareholder was precluded from an entitlement under the Offer the result is considered satisfactory.


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## greggles (21 October 2021)

CXM share price syrocketing this morning after the company strikes a deal with Samsung to supply fertiliser from the Ardmore Phosphate Project. 20% of annual production is an impressive deal. Management has done well here.

2022 is looking like is will be a good year for CXM. The share price is up around 180% today. 



> *Ardmore Phosphate Project – Phosphate Marketing Term Sheet signed with Samsung C&**T Corporation *
> 
> Centrex Metals Limited (ASX: CXM) (Company) is pleased to announce that its 100% owned subsidiary and ESG-sustainable Agriflex Pty Ltd (Agriflex) has executed a conditional Term Sheet (Term Sheet) with Samsung C&T Corporation (Samsung).
> 
> ...


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## System (17 December 2021)

On December 16th, 2021, Centrex Metals Limited changed its name to Centrex Limited.


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## frugal.rock (4 August 2022)

Possibly have started moving final product to port? (My guess only)


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## frugal.rock (1 September 2022)

Chart update only


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## rcw1 (24 November 2022)

Good morning,
Hello frugal.rock.  Couple announcements published Monday and yesterday (23/11/22).

Of note, the following article written in the Townsville Daily Bulletin today, via New Corp Media, linked to Mondays company annoucement.  This is of interest to rcw1.  Not holding CXM at this time.  Comments made by Port of Townsville Chief Operating Officer Drew Penny, would have been most welcomed by CXM shareholders!!!


*International uncertainty caused by Russia’s war with Ukraine has prompted the first exports of phosphate rock from Townsville.*





Tony Raggatt
Follow

@anthonyraggatt

2 min read
November 24, 2022 - 6:00AM
Townsville Bulletin
https://www.couriermail.com.au/news.../509704c5e1d83a734aa7894d00ad05df#share-tools




The phosphate rock processing plant established by Centrex at Ardmore.

Vladimir Putin’s war on Ukraine is helping to establish a new industry in North Queensland and end Australia’s and New Zealand’s reliance on imported phosphate.  ASX-listed Centrex has announced its first international shipment of phosphate rock from Townsville port to New Zealand which closely follows a shipment to an Australian customer.  Supply chain disruption caused by Russia, which with Morocco is a key fertiliser supplier, has introduced uncertainty and seen phosphate rock prices triple to more than US$300 a tonne.
Centrex is the first of multiple players looking to capitalise on the big phosphate resources in north west Queensland and the Northern Territory formed by marine animals which died when an ancient inland sea dried up.

The company’s demonstration plant has the capacity to produce up to 240,000 tonnes of phosphate rock a year and is a precursor to a larger 800,000 tonnes per annum plant.  In a statement, Centrex CEO Robert Mencel said Australia and New Zealand imported a million tonnes of high-grade phosphate rock each year, mainly from Africa.





Centrex CEO Robert Mencel stands in front of the phosphate rock processing plants at Ardmore near Mount Isa.

“Like Australia, New Zealand requires surety of supply because domestic food security is not
something to be gambled with,” Mr Mencel said.  The first shipment of 5000 tonnes left Townsville last weekend to New Zealand agricultural cooperative Ravensdown.

Ravensdown will use the phosphate rock to make fertiliser like super phosphate.  Ravensdown supply chain general manager Mike Whitty said initial assessments of the rock had been promising.  “We believe Ardmore phosphate rock has the potential to form a part of Ravensdown’s nutrient offering, helping to firm up local supply of high-quality superphosphate for New Zealand farmers and growers,” Mr Whitty said.  “If the last few years have proven anything, it’s the value of having options.  “As a co-operative, it’s our job to identify and manage those risks on behalf of our farmer and grower shareholders. We’re committed to ensuring they have ongoing access to the essential nutrients needed to run their businesses.”

Port of Townsville Chief Operating Officer Drew Penny said Centrex’s first bulk shipment of phosphate from the port last month was the first bulk handling in Australia.  “Centrex’s enterprise has the potential to become both an import replacement business and a new export business for Australia,” Mr Penny said.  “The Port of Townsville has a two common user berths that are suited to bulk export of mining and mineral products.”

Mr Mencel said soaring fertiliser prices brought on by supply chain disruptions had become a major concern to the domestic agricultural sector.  He said most of the phosphate rock to be mined at Ardmore would be for the commercial fertiliser production industry.

The company is in discussions with other potential fertiliser customers and has negotiated first right for offtake agreements for all of the production for the first three years of the project.



frugal.rock said:


> Chart update only
> 
> View attachment 146252


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