Riley, page-98

Our Iron ore is 58fe premium....We calculate Fe57 to fe62 because the Singapore Metal exchange operates on an Average of metal Fines ,this is done to keep inline with daily spot markets averages.....Whilst, we may contract to safe guard being under fe62 in some cases we may be graded to fe 65 .
So our average should come out at fe58 if it falls to fe57 then it does not make any difference to our contracted price, if our average comes in on each shipment at fe 62 then, once again it does not make any difference to our contracted price.
The Pilbara IO average is 65fe, so they have an average of 57fe to 67 fe. This just allows them a greater margin.....This averaging came about in 1995 to stop buyers who had contracted at Fe 62 from reducing the price is they claimed the average was fe58 thus only paying a less amount....Our contract Price is the same as FMG fe58 so whether we land it in Singapore at fe 57 to fe 62 we get the same.
If, we fall below fe57 expect a discount if we are above fe58 but below fe 62 then it makes no difference. If we achieve fe 63 to 75 then expect increase.
So the least of our worries is discounting. The contract price has already factored in the Margin.....All Iron prices FOB are based on fe57 to fe62.

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The main points are both fe62 grade and fe 57 are both worth the same depending on the steel maker as they are blended to suit the blast furnace for different products....It’s not uncommon for steel buyers to pay more in some cases for fe57/58. Compared to fe62/65 as their furnace may only be suited to the lower grade......Also by grading down is better, as royalties are often calculated on grade of product. We may achieve 40% of our product at fe62 but will pay for average fe58 .....but we will be paid an average on fe57 to fe62.

My opinion on how our SP will soon go, if IO prices remain above $120.
1) Kulin results being consistent with trenching results........8 c +
2) Wet plant. Completion. ....................12 c +
3) Production start up...........................15c +
4) Shipping & Income Riley...................20c+
5) Unexpected Good news Mt Lindsey.................55c+
6) More Unexpected Good News NGG.................78c +
7) Good news from Chalice Drilling ......................85c+
Just my opinion not looking to debate anything, I have my own reasons for these Prices and other News I expect.....Also, to my understanding, it has always been AR's intentions to have a Dividend paying Company.......So, any Dividend will also boost the Markets perception of this Company.