annual report

I just read the annual report .
Looks like the MD gerrard ANderson has a very good mining history as previous general manager of a number of working gold mines, but he is compensated for it at CXM with a $ .5M sallary.

82% of capital held by 20 largest shareholders so Im guessing would move quickly on good news

Its a 2 mine scenaro with a hematite mine first to come on stream followed by a chinese JV magnetite mine

Looks like the massive hematitie is really rather low quality with high P (as already mentioned on here) There looks to be around 8 million tons of it mineable plus some even poorer quality clay mixed hematite that needs further treatment before it could be shipped.

Planning for 2M TPA production of DSO seems high for such a low reserve base of around 10 M tons so I am guessing CAPEX must be quite low. Mine Schematics indicate a simple pit design with i am guessing a .4 /1 strip ratio (low) but with varying ore grades throughout the body due to clay (Sio2 Al2o3) so will take some expertise by mine manager to reduce dilution

8 M ton * $30 = $240 M potential income I am guessing over mine life However The DSO seems tenuous at best for going ahead IMHO as I feel they will have trouble marketing the high P ore as some of the % of P are awfull in samples over 1% P You may want to varify this with the MD as its just my opinion. maybe they have worked a way of using high P in blast furnaces .

Chinese partner has untill end of Jan 08 to make good on its commitment to finance first installment of magnetite project.



The magnetite project has potential due to being close to port and reasonable grades