CXM - Centrex Limited

[j4mesa]

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......

 

[j4mesa]

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

 

[surfingman]

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?

 

[surfingman]

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.

 

[Lachlan6]

(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.

 

[jammin]

(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.

 

[Synergy]

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...

 

[Datsun Disguise]

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)

 

[lucifuge]

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.

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)

 

[sharechaser]

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?

 

[happytown]

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

 

[Touch of Gold]

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....

 

[prawn_86]

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.

 

[happytown]

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

 

[happytown]

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

 

[happytown]

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.

Prior to mining commencing on the Wilgerup site, Centrex will finalise and submit a Mine and Rehabilitation Plan (MARP) for approval by PIRSA.

...

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

 

[happytown]

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

 

[happytown]

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/

 

[happytown]

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

 

[lazyfish]

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