lets work out fmgs cash flow, page-23

i was under the impression that $140USD per tonnne was for lump ore and thus thats the price they get for the ORE and not the iron content! The higher the iron content the better the ore and thus the higher the lump price paid.

The $140 per tonne i believe (but i cld be mistaken, even tho im pretty sure im not) is for the ORE (the dirt which obviously contains the iron)

The better the quality of the 'dirt' or ore (i.e the higher the iron grade in the dirt/ore) , the higher the price !

Please someone correct me if im wrong?!?

In this case if im right, you DONT multiply by 60%!

youre paying $140 USD for the ore (its quality), not the iron

am i right or wrong???

** another point - the less the qty produced, the lower are the economies of scale! Thus in this qtrly , they didnt produce much, and so cost/tonne would be much higher than if they produced 40-50mill tonnes.

producing 40-50mill tonnes would see HUUUGE economies of scale , i.e cheaper per unit costs with increased rates of production

So it may be that costs can be as low as 25-30 cents per tonne (ill look into it)