12 months hedging, page-18

Afternoon,

I agree with alot of what you have posted, apart from the last part about slowing down production.

The way the performance options are set up for the 11 vendors to meet certain quotas of iron ore shipped and paid for over a 2.5 - 3 year period 1 million tonnes then a further 2 million tonnes the following target, these 2 targets are worth around 62,500,000 shares to the 11 vendors which atleast 2 directors are running the show will be apart of.
Knowing the above they will not put this at risk by slowing production over the next 6 months say.

Additionally quick calculation they would be turning away around USD $36 million NPBT for a 6 month period it we take a USD$100 per tonne over the next 6 months.
Using 60,000 tonne per ship for period.

I hope this explains why i dont think they will halt production.

Have a good evening

Rooks