this is iron. good value.

Hi CXM holders.

This thread is a little dead. Anybody out there?

A very interesting stock in the early days. This reminds me of AGO back in 2008 where the market cap lingered at around $100m, but is now worth over $1.2b as they made their move from an explorer to a ASX200 Iron Ore producer. The move meant heaps of drilling to further define their resources, increasing reserves, offtake agreements, transporting and shipping their iron ore.

I believe this is worth some research.

Taking a look at the JV deals. Centrex have two major projects, one with WISCO and the other with Baotou. Reading the TOA both deals is very crafty and gives the Chinese majority interest (60%) and an edge. However, here are some highlights:

1) WISCO

A total of up to A$186m for 60% equity in the JV (minimum payable $78m)

WISCO will sole fund $75m of work commitments into the joint venture to cover exploration and study cost

To develop 2 x 5mtpa Magnetite concentrate operations (4mtpa CXM share)

WISCO will pay A$26m to Centrex when JV has defined magnetite banded iron JORC Inferred Resources of 1.25 billion tonnes, 1.5 billion tonnes, 1.75 billion tonnes, 2.0 billion tonnes respectively

Project Financing ? WISCO support, China support

Drilling program commenced August 2010

FIRB approval

07/07/2010 First Purchase Price Instalment Paid to Centrex $51.5m

07/07/2010 Work Commitment Paid to JV $50m

WISCO financing support (China Bank support)

2) Baotou JV:

Drilling program commenced August 2010, exploration target of between 127Mt and 417Mt, aim to convert this to an inferred resource

$40m in payments (over stages) for 50% interest, however at stage 2 Baotou will be assigned a further 10% interest

Other:

600,000 tonnes of hematite ore per year for 5 years from the Wilgerup Mine Project near Lock signed with Baotuo

Water and electricity considerations need to be taken into risk consideration

MRRT tax implications?

Perhaps a time to buy? Long term investment? Superfund style investment to plan for your retirement?

Charts looking good with technical's showing bottom has been hit and a reversal of long term down trend. I think we are staring at the face of the new uptrend

2 major JV projects undergoing significant drilling since August 2010

WISCO and Centrex port joint venture update? (pass mutual agreed deadline of 24th September 2010)

$101.5m paid to Centrex by WISCO in July 2010 (Total cash balance around $115m including payment, as oppose to MC of $118m)

Current MC backed to cash 1 for 1, no IGV consideration for CXM current resource of 29.3Mt Hematite and 231 Mt Magnetite; exploration upside? what if CXM hits 2b iron ore resource within 3 years?

2 Directors buying recently from $0.38 to $0.40 to a value of approx $100k (pending drilling results?)

No broker coverage, flying well below the market radar

Strong Chinese interest, reflected by JV investment, top 20 shareholding and management

What does logic tell you? With all the progress made to date. With such keen interest in developing rail, port and the various projects around SA. Surely, China wants the iron ore and the Government loves the investment (this is SA man! not WA, not Queensland).

Please do your own research. CXM could be a good long term investment. However, be weary of the volumes. It can take a long time to secure a sizeable stake at $0.38. In addition, prices can be a little jumpy. Top 20 holders of ordinary and escrow holds nearly 80% of stock. Luckily after being kicked so many times, my balls is iron and can stomach the risk.

All the best to all holders!
LM