Blythefan, maybe you should read the announcement properly , you have made a post with only the parts of the announcement that suits your agenda. The FACTS TTY produced 373,936 tons at a cost of $23,072,000 TTY sold 279,858 tons for $23,504,000. Maybe you don't realise this, but if you read the announcement properly then you should realise this.
Do the calculation and then you'll realise that the ACTUAL cost of production against the sale price shows a profit / ton of about $22/ton.
Again, I suggest you read the announcement. QUOTE "Operating cost of A$51 per shippable tonne loaded Darwin achieved during the month of March" The price received is AUD$83/ton or US$60/ton as the IO is sold on the spot market. Even at the current spot price they are making money although at $22/ton it isn't much. The announcement states QUOTE "resulting in spot iron ore prices remaining at around a 40% discount to 2008 contract prices"
So even at spot rates 40% lower than contract prices they are making AUD$22/ton and from March onwards with the costs of production at $51/ton TTY is making $32/ton.
I suggest that you read the report correctly and post the actual facts and not rubbish in future.
TTY Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
