Ordering a second ship would be a difficult call for AR. 58% IO...

Ordering a second ship would be a difficult call for AR. 58% IO is trading at a 23% discount to the headline 62%IO price. VMS ore is slightly lower grade than this.

"The first shipment, comprising of 45,632 tonnes of iron ore with an average grade of 57.3% Fe from the Riley mine"

The following IO prices at Qindao last Monday demonstrate this:-

Fastmarkets iron ore indices
62% Fe fines, cfr Qingdao: $135.03 per tonne, up $11.65 per tonne
62% Fe low-alumina fines, cfr Qingdao: $139.10 per tonne, up $12.15 per tonne
58% Fe fines high-grade premium, cfr Qingdao: $105.59 per tonne, up $9.73 per tonne

If the price for 58% IO drops by the same amount as Monday's rise of almost $US10 the price received might not cover costs of production, trucking, storing and shipping. Between a rock and a hard place.