Happ the CMC is the fix component to the haulage contract. A logistics company will either say:
1. "we will charge you for a minimum tonnage, no matter how little you move."
or
2. "we will charge you a fixed and a variable cost."
I believe it is the latter for Centrex. To get the current CMC you could pro-rata the $4.2M from 216kt to the current 325kt to get the fixed cost. Then the variable cost would be the remainder in the logistics "bucket". The only catch there will be adjusting for the difference between what is transported and shipped (and any stock that may be in the system at the time of reporting).
$30/t would get you railing from Mt Isa to Townsville (perhaps with loading and unloading). Trucking via road is expensive.
Add to My Watchlist
What is My Watchlist?