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CENTREX METALS LIMITED
RESEARCH NOTE
Acquire, define and develop
•
Centrex Metals (CXM) has successfully implemented a
business strategy of attracting foreign investment to develop
early stage exploration assets in Australia. To date the
Company has secured the support of two major Chinese steel
producers for its iron ore assets in South Australia and one
major Chinese partner for a base metals project in NSW. With
$35m in cash, CXM is well positioned to maintain these assets
and advance its new metals portfolio which will provide short,
medium and long term value to the Company. As the Company
is trading close to cash backing (Enterprise Value of $0.7m)
with a proven track record in securing foreign investment, we
believe the market is undervaluing CXM and its portfolio of
assets. As a result we are initiating coverage with a
Speculative Buy recommendation.
14 April 2014
Speculative Buy
12mth Rating
RIC: CXM.AX
BBG: CXM.AU
M
A$
A$m
%
Issued Capital
Price
Market Cap.
Net Debt/Equity
Cash
A$m
Matthew Trivett
Analyst:
Long-term assets - CXM has been focused on the development of
its iron ore assets and infrastructure on the Eyre Peninsula in South
Australia since 2001. In 2010 it successfully created joint ventures
with major Chinese steel producers, Wuhan Iron & Steel (WISCO)
and Baotou Iron & Steel (Baotou), to fund the development of two
magnetite projects. CXM also owns 100% of a small hematite DSO
operation and another magnetite project which has had some
encouraging exploration results recently, which could lead to another
joint venture agreement.
•
Good location with port solution - These magnetite Projects are
located between 40km and 100km via slurry pipeline from ports and
CXM has identified and developed a conditionally approved port
solution at Port Spencer. The Projects are also located in an area
close to large regional centres and relatively well endowed with
infrastructure including roads and national grid power.
•
Looking for exploration success - CXM has built a portfolio of
early stage exploration tenements in the Lachlan Fold Belt, NSW. The
portfolio is prospective for base and precious metals with historical
mineralisation evident at all prospects. CXM will endeavour to develop
these projects in a similar fashion as it has developed its iron ore
holdings.
This will be done through conservative exploration
expenditure to develop each tenement, prior to seeking foreign
investment partner. CXM has successfully executed this strategy with
the Goulburn Zinc - Lead Project by executing a Joint Venture
agreement with the Shandong 5th Geo-Mineral Prospecting Institute.
•
Solid structure - All joint ventures are structured to have minimal
impact on the Company’s cash reserves and financial structure. As
the projects develop, CXM, with its JV partners, will look to raise the
require capital at the project level. This should ultimately provide
CXM with a portfolio of minority holdings in projects producing a
number of commodities around Australia.
Phone:
Email:
(+61 7) 3737 8053
[email protected]
An investment in this company should be
considered speculative and note assumptions
employed are contingent on broader market
conditions remaining buoyant. These can
change at short notice. Recommendations
are current at the time of publication.
12 Month Share Price Performance
0.16
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0.12
Share Price
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0.10
1500
0.08
1000
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Catalysts – Over the next 12 months we envisage a number of
significant catalysts for CXM including 1) Chinese approval and
commencement of drilling on the Goulburn JV tenements; 2)
Exploration success at Woolgarlo and Gundaroo; 3) Resource definition
and JV agreement for Kimba Gap; 4) Baotou increasing its interest in
the Bungalow JV to 50% and investing the additional $16m.
314.1
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Investment highlights
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RESEARCH NOTE – PATERSONS SECURITIES LIMITED
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
1
14 April 2014
Centrex Metals Limited
Investment thesis
Centrex Metals (CXM) has successfully implemented a business strategy of attracting
foreign investment to develop early stage exploration assets in Australia. To date the
Company has secured the support of two major Chinese steel producers and sourced
$177m in foreign investment. This has placed the Company in a strong financial position
with three iron ore projects, at various stages of feasibility, on the Eyre Peninsula in South
Australia with a potential infrastructure solution.
CXM is replicating this strategy in the Lachlan Fold Belt, NSW, by building a portfolio of
early stage exploration tenements. The portfolio is prospective for base and precious metals
with historical mineralisation evident at all prospects. CXM has already had some success
with these assets by supplementing historical data with geophysical and geochemical
studies. This has resulted in the successful execution of a Joint Venture agreement with
the Shandong 5th Geo-Mineral Prospecting Institute (Shandong) on the Goulburn Zinc Lead Project. Once Chinese approval is gained, Shandong has agreed to fund $2m for the
initial drill program to test a number of identified targets.
We see value in the magnetite projects but also see them as capital intensive, long term
prospects. CXM is well positioned with $35m in cash to maintain these assets and advance
its new metals portfolio which will provide short to medium term value to the Company. As
the Company is trading close to cash backing (EV of $0.7m) and has a proven
track record in securing foreign investment, we believe the market is
undervaluing CXM and its portfolio of assets. As a result we are initiating coverage
with a Speculative Buy recommendation.
Company overview
CXM was incorporated on 23 March 2001 to explore for iron ore on Eyre Peninsula and
listed on the Australian Securities Exchange in July 2006. From 2006 until 2010 CXM
focussed its resources on the development of the Wilgerup hematite deposit. It became
evident that the project was not of sufficient size (1.6Mtpa) to individually warrant a port
solution, which would need in excess of 5Mtpa of throughput to be justifiable.
In July 2010 CXM signed two very significant joint venture agreements with Chinese steel
companies. Baotou Iron & Steel Group Company Limited (Baotou) signed an agreement
covering the Bungalow tenement and Wuhan Iron & Steel (Group) Co. (WISCO) signed an
agreement covering 5 tenements in south east of the Eyre Peninsula. CXM also has a joint
venture pending with WISCO covering a 50:50 development of Port Spencer.
The WISCO JV has commenced an expanded Pre-Feasibility Study (PFS) that started in
December 2013 with a new drilling program on the primary project, Fusion. The expanded
PFS will use the existing cash reserves in the JV of $7m and, subject to continued positive
economic modelling and land access, then the JV partners will contribute an additional
$10m ($4m CXM and $6m WISCO) to take the project to the end of the PFS.
The Bungalow PFS has been drafted and is now under technical review by Baotou. Baotou
has the right to increase its interest in the project to 50% by the investment of an
additional $16m. CXM expects to conclude negotiations on moving the project to this next
stage by the end of the year.
The Kimba Gap iron ore project is the latest project CXM is looking to develop. A drilling
campaign is due to be completed this quarter which is expected to be adequate to define a
JORC compliant resource in the subsequent quarter. This will provide catalyst for CXM to
market the project to potential JV partners.
More recently CXM has been looking further afield by acquiring tenements in the Lachlan
Fold Belt, NSW. It has also used its relationships with its Chinese partners to enter another
joint venture with the Shandong 5th Geo-Mineral Prospecting Institute over the Goulburn
tenements. This joint venture has been executed and only requires Chinese regulatory
approval to be formalised. CXM will continue to build its metals project portfolio to balance
its longer term iron ore portfolio in South Australia.
All joint ventures are structured to have minimal impact on the Company’s cash reserves
and financial structure. As the project develops, CXM, with its JV partners, will look to raise
the require capital at the project level. This should ultimately provide CXM with a portfolio
of minority holdings in projects producing a number of commodities around Australia.
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
2
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
14 April 2014
Centrex Metals Limited
Projects
Iron ore
CXM has been focused on the development of its iron ore assets and infrastructure on the
Eyre Peninsula in South Australia since 2001. In 2010 it successfully created joint ventures
with major Chinese steel producers, Wuhan Iron & Steel (WISCO) and Baotou Iron & Steel
(Baotou), to fund the development of two magnetite projects and a potential deep water
bulk commodity export facility. CXM also owns 100% of a small hematite DSO operation
and another magnetite project which has had some encouraging exploration results
recently which could lead to another joint venture agreement.
These Projects are located between 40km and 100km via slurry pipeline from ports and
CXM has identified and developed a conditionally approved port solution at Port Spencer.
The Projects are also located in an area close to large regional centres and relatively well
endowed with infrastructure including roads and national grid power.
Figure 1: Project location map
Source: Centrex Metals
Eyre Iron Joint Venture (CXM 40%, WISCO 60%)
The Eyre Iron Joint Venture (EIJV) compromises a series of magnetite projects located in
the southern Eyre Peninsula in South Australia. The JV transaction was finalised in 2010
and CXM transferred 60% of the iron ore rights across five of its exploration licences to
WISCO in consideration for $78m paid over two instalments by mid 2011. WISCO also
contributed the first $75m for exploration on the projects which have defined 894Mt in
resources to date.
The Fusion magnetite project is the flagship asset of the EIJV and has a current resource of
680mt, including 312mt in the measured and indicated categories. The project is located
35km north of the city of Port Lincoln and comprises numerous magnetite deposits
spanning 50km of anomalous Banded Iron Formation (BIF) trend. Development of the
project envisages construction of a centralised processing facility with magnetite
concentrate pumped via slurry pipeline the proposed deep-water export facility at Port
Spencer.
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
3
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
14 April 2014
Centrex Metals Limited
Figure 2: EIJV location map with high resolution aero-magnetic image
Source: Centrex Metals
Further development of the EIJV was defined under the Second Supplementary Deed in
November 2013. Based on the mine and port scoping study completed in mid 2012, both
parties agreed to proceed with an expanded PFS focused on exploring additional deposits
within the flagship Fusion project. This will allow greater mining selectivity and reduce
estimated mine production costs. The current process plant, logistics and infrastructure
designs will remain relatively unchanged with the focus of the expanded PFS on mine
design.
The expanded PFS started in December 2013 with a new drilling program on the expanded
Fusion project. The expanded PFS will use the existing cash reserves in the JV of $7m and,
subject to continued positive economic modelling and land access, the JV partners will
contribute an additional $10m ($4m CXM and $6m WISCO) to complete the PFS.
The drilling program is building on 8 holes drilled in late 2012 at the Bald Hill deposit, a
9km magnetic trend adjacent to the existing Fusion mineral resources. The previous
program identified the presence of magnetite BIF similar to those forming the project’s
current resource.
The Deed also established a simpler funding path to complete a Bankable Feasibility Study
(BFS) if the PFS provided the incentive to proceed. In this case CXM’s contribution to the
project would end and the project would be funded by either;
1.
Listing the project on the ASX, with CXM diluting down from 40% to 30% in
exchange for WISCO underwriting the listing. Centrex shareholders would likely
receive an in-specie distribution of shares in the new vehicle; or
2.
Centrex and WISCO seek another Chinese partner to fund the BFS but Centrex’s
dilution would be capped so that it’s holding decreases no further than 30%.
The new arrangement effectively isolates the Company’s cash reserves, removes some
aspects of the original agreement such as the resource incentive payments payable by
WISCO and CXM’s obligation to dilute ownership if 1Bt of Inferred Resources are not
defined within the joint venture during the first 7 years.
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
4
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
14 April 2014
Centrex Metals Limited
Bungalow Joint Venture (CXM 70%, Baotou 30%)
The Bungalow JV tenement is located immediately to the north of Cowell in the Northern
Eyre Peninsula. The JV agreement was competed in June 2010 with Baotou able to earn up
to 50% of the iron ore rights in the project through staged expenditure of up to $40m, of
which $24m has been invested to date.
Bungalow and the associated Minbrie prospects are located along an 18km long NE-SW
magnetic trend. The geology is dominated by BIF, similar to that of the Middleback Range
deposits of Arrium (ASX code: ARI).
Figure 3: Bungalow deposit geological model and geo-metallurgical domains
Source: Centrex Metals
The PFS has been drafted and is now under technical review by Baotou. Baotou has the
right to increase its interest in the project to 50% on the investment of an additional $16m.
CXM expects to conclude negotiations on moving the project to this next stage by the end
of the year.
Wilgerup (CXM 100%)
The Wilgerup DSO hematite project is located north of Port Lincoln. Prior to the WISCO and
Baotou JVs, it was the main focus of CXM’s activities. The project is well advanced with
mining approvals granted for a 1-1.5Mtpa operation over 7 years. CXM plans to develop
Wilgerup in-line with Port Spencer.
The hematite mineralisation was originally identified by WMC in the early 1990s, with
subsequent work by Rio Tinto Exploration and Dampier Mining Limited defining a small
hematite resource in two lenses. Subsequent work by SAIOG and CXM has defined a JORC
Compliant Mineral Resources of 13.3Mt @ 57.7% Fe.
CXM tried to expand the resource in 2013 with a drilling program that tested a number of
ground gravity survey anomalies for DSO hematite. The drilling intersected magnetite iron
mineralisation, however, no significant DSO was discovered.
Kimba Gap (CXM 100%)
The Kimba Gap iron ore project encompasses a 4.6km outcropping BIF approximately 60km
west of Whyalla in South Australia. The project is located adjacent to Arrium’s existing
hematite and magnetite iron ore mines. High resolution magnetic and gravity surveys, rock
chip sampling and an initial diamond drilling program was used to define an Exploration
Target for the project. The latest drilling campaign is expected to be completed this quarter
which is expected to be adequate to define a JORC compliant resource in the subsequent
quarter.
Preliminary Davis Tube Recovery (DTR) results show the potential to produce a very highiron and very low-silica magnetite concentrate. Diamond core composites were ground to
38µm and DTR tests performed. The magnetic concentrate from this test work was then
further ground to 25µm and a further DTR test performed. The test work results produced
average final concentrate grades of >71% Fe and <1.0% SiO2 with overall head sample
mass recoveries >30% (>95% mass recovery from the 38µm magnetic concentrate).
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
5
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
14 April 2014
Centrex Metals Limited
Port Spencer
Port Spencer is a proposed multi-user deep water port facility on the east coast of the Eyre
Peninsula. CXM has completed a PFS on the facility with an initial capacity of 20Mtpa with
the potential to increase to 40Mtpa. However, development will only occur once the
decision to mine has been approved at one of the Company’s magnetite joint ventures.
A revised PFS envisaged the design and construction of a 200m jetty with a simplified point
ship loader. The proposed facility utilises new CSL trans-shipment technology which has
recently been implemented by Arrium at Whyalla which exports 7Mtpa.
This new CSL transhipping technology comprises a self powered and self docking vessel
capable of transporting 15kt of ore. The vessel utilises stern and bow thrusters which
removes the traditional requirement for tugs, representing a significant reduction in capital
and operating costs. The size of the trans-shipper also allow the vessel to be loaded in only
7m of water (low tide point at Port Spencer) before off-loading into a Cape-class vessel
anchored approximately one nautical mile offshore in a water depth of ~23m. Transshipper vessel are versatile and capable of loading various sized cargo vessels as well as
loading alternative commodities such a grain. The capacity of the plant can be increased by
increasing the number and/or the size of the transhipping vessels.
Figure 4: CSL transhipper in operation loading iron ore into a Cape-class vessel
Source: Centrex Metals
The Federal Government Department of Environment granted conditional approval for the
facility in November 2013. The conditional approval covers all onshore and offshore facilities
required for shipping access and the export of grain and iron ore. This also includes Federal
Government approval of a desalination plant to provide process water to CXM’s proposed
magnetite iron ore mines in the region. The desalination plant still requires State
Government approval prior to development. Water quality monitoring for the State
Government desalination plant approval application is close to completion.
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
6
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
14 April 2014
Centrex Metals Limited
Base and Precious metals
CXM has built a portfolio of early stage exploration tenements in the Lachlan Fold Belt,
NSW. The portfolio is prospective for base and precious metals with historical mineralisation
evident at all prospects. CXM will endeavour to develop these projects in a similar fashion
as it has developed its iron ore holdings. This will be done through conservative exploration
expenditure to develop each tenement prior to seeking foreign investment partner. CXM
has successfully executed this strategy with the Goulburn Zinc - Lead Project by executing
a Joint Venture agreement with the Shandong 5th Geo-Mineral Prospecting Institute
(Shandong).
Figure 5: : Project location map
Source: Centrex Metals
Goulburn Joint Venture
The Goulburn Zinc – Lead project comprises of two tenements located in the Lachlan Fold
Belt, approximately 20km south of the town of Goulburn. The tenements comprise an area
of 275 km2 with a number of prospects containing volcanic hosted massive sulphide (VHMS)
and skarn styles of mineralisation.
Geophysical mapping of the project has shown promising conductor targets located on the
edge of a major gravity high adjacent to historically defined zinc, lead and copper
mineralisation. These conductor targets will be tested in an initial drilling campaign once the
JV has been given Chinese approval.
In 2013 CXM and Shandong signed a joint venture agreement where Shandong can earn a
35% interest in the project by spending $2m. Shandong has further options to earn up to
80% by funding a project through to production should a deposit be defined. Final approval
from the Chinese Government expected to be granted in the near future.
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
7
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
14 April 2014
Centrex Metals Limited
Figure 6: Gravity contours and geological units
Figure 7: Location Map
Source: Centrex Metals
Source: Centrex Metals
Gundaroo (gold/base metals – NSW)
The Gundaroo project is located 10km west of the Goulburn Joint Venture. The project
covers an area of 280km2 following a structural corridor containing historically mined
prospects.
The project area is thought to be prospective for intrusion-related gold mineralisation and
during 2013 a high-resolution magnetic and radiometric geophysical survey was completed
over the southern half of project. The survey showed a number of previously unidentified
significant structural trends in close proximity to a known major felsic body.
This prompted CXM to conduct a stream sediment geochemical program over the southern
half the project. A total of 245 stream sediment sample points were taken and analysed for
both path finder elements and gold. The assay results have identified 9 target areas of gold
anomalism for further evaluation. Detailed mapping and shallow drilling will be used to
further prioritise the targets.
Woolgarlo (gold – NSW)
The Woolgarlo project is the third and latest tenement granted to CXM. It is located within
the Lachlan Fold Belt, 10km west of Yass, covering an area of 281km2 and hosting a
number of historical gold prospects.
Historical exploration suggests that the Mt Mylora prospect to the north of the tenement
represents the base of an epithermal system, and the Sugar Bag prospect to the south of
the tenement the top of an epithermal system. CXM considers that there is potential for the
Mt Mylora and Sugar Bag prospects to form part of a broader Pajingo-style epithermal gold
system.
CXM has completed a high-resolution airborne magnetic and radiometric survey to define
prospective demagnetised structures and will follow this in the near future with a stream
sediment geochemical program within the magnetised structure.
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
8
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
14 April 2014
Centrex Metals Limited
Corporate structure
Centrex Metals (ASX: CXM) is listed on the Australian Securities Exchange. There are
314.1m shares, 4.5m performance rights and 0.8m options on issue, which derives a
current market cap of $36.1m. The Company received $78m in 2010 from the JV
agreement with WISCO. Since then it has paid tax and two fully franked special dividends
and currently has approximately $34.5m in cash of which $28.6m is uncommitted and the
remaining $5.9m is committed to tax payable and CXM’s commitment to completing the
expanded PFS on the EIJV.
Figure 8: Substantial Shareholders
Shares (m)
%
South Cove Ltd
80,876,005
25.79
Wugang Australian Resources Investment Pty Ltd
40,399,599
12.88
Baotou Iron & Steel
21,900,000
6.98
HSBC Custody Nominees
17,968,624
5.73
SEL Holdings Ltd
16,198,000
5.17
Source: Bloomberg
Board & Management
Chairman - Mr David Klingberg, AO
Mr Klingberg has 34 years’ experience as a professional engineer including 10 years as CEO
with Kinhill Limited. He was Chancellor of the University of South Australia for 10 years,
retiring in 2008. Mr Klingberg is a director of ASX listed companies Codan Limited and E&A
Limited. He was a director of Snowy Hydro Limited and former Chairman of Barossa
Infrastructure Limited and the Premier’s Climate Change Council. He is currently a member
of the State Government Board of Invest SA and a Patron of the Cancer Council of South
Australia and the St Andrew’s Hospital Foundation.
Chief Executive Officer - Mr Ben Hammond
Mr Hammond is a geologist with an MBA who commenced his employment at CXM in
December 2007. His roles have spanned business development, project management,
business improvement, mine geology and exploration. Prior to this he spent his career in
bulk commodities with BHP Billiton.
Independent Non-Executive Director - Mr Jim Hazel
Mr Hazel has had an extensive career in banking and investment banking, including
positions as Chief General Manager of Adelaide Bank Ltd and managing director of an ASX
listed retirement village and aged care operation. He is now a professional public company
director and currently holds directorships on the boards of Bendigo and Adelaide Bank
Limited, Rural Bank Limited, Impedimed Limited, Coopers Brewery Limited, Ingenia
Communities Group, and the Motor Accident Commission.
Non-Executive Director - Mr Graham Chrisp
Mr Chrisp is a Civil Engineering and has substantial experience in numerous aspects of
business operations, including design and construction of roads and other earthworks,
mineral exploration and property development. He was a founding director of Centrex
Metals Limited and Lincoln Minerals Ltd and is currently Executive Chairman of Outback
Metals Limited.
Mr Chrisp is also a Director of unlisted South Cove Ltd, the largest shareholder in the
Company.
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
9
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
14 April 2014
Centrex Metals Limited
Independent Non-Executive Director - Mr Kiat Poh
Mr Poh has over 30 years’ experience in the construction, real estate development,
manufacturing industries and financial markets. He has held senior positions in corporate
finance and mezzanine capital investment companies in Malaysia From 1998 to 2005, he
was Managing Director of a Singapore Exchange listed company and is currently a director
of Synergy Metals Ltd.
Independent Non-Executive Director - Mr John den Dryver
Mr den Dryver is a Mining Engineer with project development and operational management
experience in the mining industry on projects in Australia and overseas. He held a role with
Newmont Australia (formerly Normandy Mining Group) involving assessment and
acquisition of mineral projects in Ghana, as well as significant operational involvement with
North Flinders Mines and The Granites gold mine in the Northern Territory. Mr den Dryver
is a current director of Gascoyne Resources Ltd, Adelaide Resources Ltd, and Helix
Resources Ltd. He is also on the Board of Eyre Iron Pty Ltd, the manager of the Centrex –
WISCO joint venture.
Non-Executive Director - Mr Bingqiang Lu
Mr Lu has over 20 years’ experience in the mining industry. He has held a number of
positions with Wuhan Iron & Steel (Group) Corp (WISCO) and is currently the Managing
Director of Wugang Australian Resources Investment Pty Ltd, a wholly owned subsidiary of
WISCO and a Director of Eyre Iron Pty Ltd, the manager of the Centrex – WISCO joint
venture. Prior to his role with Eyre Iron, Mr Lu was the Managing Director of Jinshandian
mine.
Investment risks
CXM is subject to various financial and operational risks and uncertainties that could have a
significant impact on potential capital requirements, profitability and levels of operating
cash flow. These risks and uncertainties include, but are not limited to: fluctuations in
commodity prices (principally the price of iron ore, gold, copper lead and zinc), capital and
operating cost estimates, borrowing risks, production estimates, need for additional
financing, uncertainty in the estimation of mineral reserves and mineral resources, the
inherent danger of mining, infrastructure risk, hedging activities, insured and uninsured
risks, environmental risks and regulations, government regulation, ability to obtain and
renew licenses and permits, foreign operations risks, title to properties, competition,
dependence on key personnel, currency, repatriation of earnings and stock exchange price
fluctuations.
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
10
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
14 April 2014
Centrex Metals Limited
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
11
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.

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