Humble in my haste to finish my post, I fail to reply to you...

Humble in my haste to finish my post, I fail to reply to you comments that you have brought up. I.e.:

" and the $24 mill is at a 3% discount to the spot price at the time of each shipment. Pretty competitive terms!!!"

Now humble, this discount that you have mentioned is based on the 1mill tonnes of iron ore presale agreement made on the 2nd of October last. Am I correct.??

Now, if that presale agreement is for 1 mill tonnes of ore, at 3% discount to the spot price at the time of shipment, it could amount to a fair amount of dollars in discounts.

Now, if we take for instance the current spot price of our Iron ore which is of about $120 per tonne and which is based on 62% fe until we will start to sell the 69%fe, on the whole of the 1 mill tonnes, the amount of discount will amount to approx. $ 3,600,000 dollars. And, if and when we will start selling the 69% fe, the discount will be a lot higher in dollar terms than the 62% one, considering that there will be a premium attached to that higher IO grade.

For a loan that if we are to repay in twelve months, (which could be less than twelve month if we are shipping three shiploads per months), that interest figure still comes up to about 15%. Not a bad term of interest after all.


Cheers mate. lets hope that the market will not take it too unkindly to us today. Better look away for the day, and have a look later in the day when the market is closed. JUST IN CASE.

Have to go now. After all live on a farm.