shipping included in fob costs, page-10

Hi Stagman

I too am confused over the costs that IFE have presented.

What I do know is this: if the iron ore price is $140 per dry metric tonne, IFE will get 62% as they are going to sell 62% graded iron. This equates to $87/tonne (0.62 x $140).

I am assuming 1:1 for the FX.

So if the costs are $55-$75/t, then the margins are $12-$32/t.

For 1 mtpa, $12-$32 million cash. For 2 mtpa, $24-$64 million cash.

I also think that the IO price at $140 is on the high side.

So really, I need more clarity on the costs before I will invest.

Ralph