AGO earning 260m pa profit, page-11

Seems to me from reading the above posts wrt moisture and purity that the discount is more likely to be A$18/tonne than 8.

That would half the above stated $260 mm. Then after 30% tax we are down to $90 mm which would give a PE of 4, not 1.5

Might partly explain that the market is not as naive as some posters.

However I still wouldn't trust the above numbers, I'd want to look further for what wasn't included in the costs, eg. interest costs? shipping costs? as suggested by other posters.

Regardless of any economics snapshot the picture continues to change, and I am not sure that any players smaller than FMG can withstand the squeeze imposed by the big players continuing to expand. Sometimes you need to be more focussed on the position on the cost curve than any snapshot of costs and revenue - imho the market is acutely aware of this.

EL