They must be re renegioting the contractor agreement which ends in a couple of months.
25% revenue or earnings above $66 IO price, to contractors is big bite. Cant find the reference again.
Roughie cals is 7mt of 86-66=20 /4 =5 times 7mt= an extra $35mill to contractors? so not much really=about 10% overall. Contractors must be happy.
But again people will be wondering why the extra costs. It works out to an extra $5 a million tonne.
This could take costs to 62. Hope expectations are not too high otherwise...
Mcphee creek of an extra 8mtpa for 20mtpa would be worth waiting for. 270 km is only a few hours drive.
AGO Price at posting:
5.0¢ Sentiment: Hold Disclosure: Held
