Riley Iron Ore Mine - Progress, Photos and Calculations, page-567

Charlieinvest: Our Contract is with Prospect....A lot of their contracts are for ore that is 57fe to 67fe, whilst our average May end up at 58fe it will be sold at 57fe as a lot of the steel mills can only handle grades of less then 62fe in their boilers.....If we contracted for above 58fe and it ended up below we would be panelised..... So, better to aim low and hope it’s better. We have the same grade as "FMG".

Just did the sums on 35,000 tonnes:
1) Total value at $150 is $5,250,000 less shipping $1,225,000.
2) Less transport $150,000
3) Wages $175,000
4) Port charged $80,000

Total over estimated $1.7 million costs
Net per shipment $3,550.000.00
Total net for 1 million tonnes is $68 million
Total for 1.6 million tonnes is 120 million