Fact based comments aren't allowed here. Just agenda driven ones!

First 43 Last

Share
Profile

Follow
Mencel_as_anything

2,027 Posts.

273

13/12/24

12:09

Post #: 77034557
Share

Originally posted by ManyWerri: ↑

Can you guys show me the announcement that says the CMC for logistics is $500,000/month?

Assuming it is $500,000/month, the minimum volume for this take or pay agreement is 325kt/year - this equates to $18.46/t which seems way too cheap for trucking to Isa, railing to Townsville, stevedore services and all the transferring in between.

To get a cost for the whole logistics service, I took the $20.43M quoted in the annual report, subtracted the CMC of $4.147M and used 250kt for the tonnage. That comes to $65.13/t. For such low tonnages and a broad scope, that sounds about right.

To try and allay some of @Mastatrada's frustration, the contract is for road haulage, rail, port and stevedore services (including loading and unloading at transfer points (someone please correct me if I have this wrong). It is about 150km to Isa, so they might do 5 trips a day with a triple road train which is limited to about 100t payload on outback QLD roads. You could perhaps move the minimum contract tonnage of 325kt/yr with two trucks, but you would have a third on hand to ensure availability. So, 2 drivers a shift plus a fitter/supervisor on day shift is about $2.2M in labour per year; add accommodation and flights and you get to $2.5M. There is nearly half your annual cost in labour for one segment of the logistics chain. Now consider that you would probably run more drivers and consists to have sprint capacity. Then, there is the ramp up [to 625kt].

Before any of the peanuts in the gallery blow a gasket: I am not saying Centrex hasn't missed deadlines and I am not saying this is a dead certain buy.

Expand

Fact based comments aren't allowed here. Just agenda driven ones!

CXM Price at posting: 2.0¢ Sentiment: Hold Disclosure: Not Held
5 Upvote

0 Great analysis

Reply

Top Stories

MEM

Many are concerned about global falling birthrates. This diverse stock has solutions

Almonty Industries – Now it is getting critical!

ASX Market Close: IT surges as Miners dumped | June 18, 2025

Listen: HotCopper Wire Podcast 013 - They changed the IPO rules (and that's a good thing)

MTM

MTM Crit Metals hits +1,870% returns YoY – but fundamental questions remain

First 43 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

(20min delay)
Last 1.7¢		Change 0.000(0.00%)		Mkt cap ! $14.74M

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

Fact based comments aren't allowed here. Just agenda driven ones!

Many are concerned about global falling birthrates. This diverse stock has solutions

Almonty Industries – Now it is getting critical!

ASX Market Close: IT surges as Miners dumped | June 18, 2025

Listen: HotCopper Wire Podcast 013 - They changed the IPO rules (and that's a good thing)

MTM Crit Metals hits +1,870% returns YoY – but fundamental questions remain

Featured News

Featured News

Fact based comments aren't allowed here. Just agenda driven ones!

Top Stories

Many are concerned about global falling birthrates. This diverse stock has solutions

Almonty Industries – Now it is getting critical!

ASX Market Close: IT surges as Miners dumped | June 18, 2025

Listen: HotCopper Wire Podcast 013 - They changed the IPO rules (and that's a good thing)

MTM Crit Metals hits +1,870% returns YoY – but fundamental questions remain

Featured News

Featured News