100% of cockatoo!, page-165

One thing that will be VERY important to understand is at what price for IO were the two pre sales deals done? Not sure if Tony is able to answer that, but it obviously has a huge bearing on what our profit will be for the next year or two.

I suspect (guess), that pre sales may lock in a specific price at the time the deal is done. If that’s the case, then until we ship enough to pay off both pre sales, we won’t be enjoying the current higher IO price. That’s OK, as I was comfortable enough to invest when the IO price was around $120.

Even if both deals were done at $100/ton (I would expect a bit more than that, particularly the latest $17.2m one), we should have paid both off by the end of this year if we keep to the schedule PLV set out in recent presentations. Then the cream kicks in, if IO price still up there, as I now expect it will.

Cheers,

Ned.