Pellet Price Tracking, page-589

Hi Sharky . . . pellet premium = $30 . . . 65% concentrate premium = $18.

So your point is whether the extra $12 covers the cost of pelletising.

My question is whether the concentrate coming out of the tube at Port Latta is premium 65% concentrate that would attract the $18 concentrate premium. I suggest it may not realize the full 65% premium plus the concentrate premium . . . firstly because it would be soaking wet and thus attract a discount . . . and secondly I suspect the pelletising process decreases the amount of impuriies.

Therefore I suggest we are making more profit pellitising than selling concentrate that may well attract a discount.

If I am not mistaken, 3 or 4 years ago, the pellet premium got down to $8.