DDDDDamn it!!! I hate it when I'm right. Samson, are you reading this!
Zero cost cutting done during the quarter. Cash cost is still $58 per ton. That's $58 a ton then you have to add on depreciation and amortisation, corporate administration, sale, royalties, ocean freight, interest and financing costs. DSO mining has ceased therefore all costs are now on Mag and Mag production decreased!!!! How on earth do you free up your mining fleet and operations staff from two separate operations and manage to produce less.
They only received an average of $47.5 a ton for the quarter. They lost $10.5 per ton in the March quarter just in straight mining and production costs. How much did they pay in freight and royalties and interest and financing............how much did they actually lose for the quarter
Something is going badly wrong here, even during a quarter when there was a huge rally KML only managed to get $47.5/ ton for ore. How much was the total loss for the quarter, $30/40/50 million? My guess wouldn't be $30 or $40 million btw.
I imagine if the price of 65% doesn't stabilise north of $80/ton very soon Ansteel's 'review' will only have one outcome!!
GBG Price at posting:
2.2¢ Sentiment: None Disclosure: Held
