I think that the extra stock at port is very important because it inflates their cash costs and lessens their profit, that why Cliff mentioned it.
This is how I calculated the 30 million
Their stated cash cost was $59 per tonne, if they would have sold the extra 180,000 tonnes sitting at the port their overall cash cost would have dropped to $54.80 (They receive $58 per tonne - $12.66 Shipping cost = $45.34 per tonne to come, I am assuming that they would have paid for the mining and haulage of the ore. 180,000x $45.34 = $8.2 million nearly extra income which would have dropped their cash costs to the $54.80 per tonne.)
The average price of iron ore in the December quarter was $65.00 US which = $83.28 if the Aus is 78cents.
It doesn't matter if the price is based on 62%, we don't know what they get paid for their fines anyway.
What we do know is that they get an average of $58 Aus per tonne which is equal to 70% of the iron ore price.
Therefore:
In January I calculated that the average iron ore price was $97.67 Aus (I based that on the Aus dollar being 78 cents on average) if they get 70% of that they will sell their ore for $68 per tonne.
That will mean a profit of $13.18 per tonne and if they sell another 2.2 million tonnes that will equal to $29 million for the quarter.
So in January they should have made close to $10 million and if they would have now sold they extra stock at the port they would have $18 million.
Disclaimer
I don't know if they had paid for all the mining or haulage costs but then maybe they prepaid for the shipping costs.
I assumed the Aus dollar at 78 cents who knows what it was when they pay the bills
I am assuming that the dollar 78 cents & iron ore price $97.67 Aus will stay the same for next two months
AGO Price at posting:
2.8¢ Sentiment: Hold Disclosure: Held
