trading below cash value if deal signed

Deal hoping to be signed soon for $60M cash plus $10M from 40 million shares issued at 25 cents.

Current share price is 24 cents and shares on issue if deal is signed will be 313M fully diuted.

Total cash, including $10M currently on hand, will equal $80M. Cash per share = 25.6 cents.

Add 13M tonnes of DSO hematite and target of 1,000 million tonnes of magnetite equating to A$180,000,000 in staged payments from JV partner.

Hematite at 40% reduction in current iron prices equates to $250M EBITA.

Capex for magnetite JV will probably be around $750M.

CXM may have sufficient cash to fund their $375M JV contribution.

Location is excellent. Whilst needing a port, transport costs will be very low due to proximity to coast.

Scenario of 10M tpa of magnetite x 66% iron content @ AUS$112 tonne (40% I.O. price reduction) x $42 opex x 320M shares on issue x $30M pa deprecitation x 30% tax x 50% profit share = 32 cents EPS.

On PE ratio of 10, five year target is $3.20.

Over 5 years, gain is 236% per annum.

This company has cut an excellent deal, where if it can find one billion tonnes of magnetite, it can secure its own JV funding for its project without further dilution.

Please DYOR. The above is mere speculation. CXM has not even done a scoping study yet let alone a BFS.

WPG are forecasting $51 a tonne opex however their transportation costs are much higher. Based on WPG costings, CXM opex could be as low as $38 tonne, which would bring the EPS up to 37 cents.

CXM is looking in a excellent position compared to other prospective players. CXM's deal makes WPG's deal look pathetic.

Production is forecast for 10M tpa +.

15M tpa = 57 cents EPS on $38 tonne opex.

On $42 opex, EPS @ 15M tpa = 50 cents.