crusher, page-20

In terms of DSO Copper Concentrate, SFR disclosed (17th Freb 2012) that they expected to ship 143,000t of DSO ore (25.6% Cu) so it was possible to work out (subject to TC/RC, freight etc) the NSR (Net Smelter Revenue) to SFR. As CDU have not disclosed the DSO resource it is impossible to do so in this case.

It should be noted that most copper concentrates grade ~23-25% copper (where chalcopyrite is the major Cu mineral), and as such the concentrates can be sold on a FOB or other basis (apologises for the poor table format)

FOB CFR
Export customs declaration Seller Seller
Carriage to port of export Seller Seller
Unloading of truck in port of export Seller Seller
Loading charges in port Seller Seller
Carriage to port of import Buyer Seller
Unloading charges in port Buyer Buyer
Insurance Buyer Buyer
Loading on truck in port of import Buyer Buyer
Carriage to place of destination Buyer Buyer
Import customs clearance Buyer Buyer
Import taxes Buyer Buyer

From a NSR perspective, the smelter will pay CDU based on the contract signed. The contract will be confidential - but if the DSO shipped from Rocklands is ~20% Cu, it will probably not deviate far from current industry standards. The smelters will not pay a premium as such, as the copper (inc native copper) will still have to be smelted and cast into anodes, and the anodes then refined to cathodes to ensure the the copper meets the LME specification (refer to LME website).