"Commissioning of the magnetite Concentrator commenced in November 2012, nevertheless as at 30 June 2013 the commissioning process had not advanced sufficiently for the Company to declare the plant to be in “commercial production”, and therefore in accordance with Australian Accounting Standards all commissioning and magnetite operating costs, net of the proceeds of all sales of magnetite concentrate since the start of commissioning, have been capitalised. The reported net loss for the year from magnetite operations of $22.8 million, primarily reflects the expense incurred under certain take-or-pay contractual obligations for electricity and rail charges for the period between the commencement of these contracts, and the start of commissioning. A total of 957,000 tonnes of magnetite concentrate was shipped to customers during the year."
GBG Price at posting:
12.5¢ Sentiment: Hold Disclosure: Held