Ann: Record Concentrate Cargo Shipped to China, page-29

The last sale for GXY where the customer paid for 65% and not taken i would not be surprised at all if it was sold for less than $480.

With production costs of say $387 (Avg last year) and HO admin on top they are going to be lucky to break even. They have way too many execs on high salaries.


Lets say AJM has improved there costs to $340wmt convert to dmt around $360dmt (All rough estimates).

Sell for $600 (above floor) and its to Gangfeng and they deduct the prepayment $11m/70,000 = $157

So receive $443. Cost $360. I doubt all company costs are in the $360 as they tend to be operations orientated, but even if thats ALL IN then it leaves $83USD. Not enough to cover the interest, never mind principal.

Im being generous in everything above.

If you only get $550 and all in costs are $400 less $157 Gangfeng then its selling at a loss before paying for interest or any of the capital required to produce the Spod.


AJM is a great business but the debt is crippling and if you are shipping at a loss that cant last forever.