Ann: Quarterly Activities Report, page-17

KM,

I have made enquiries and have been advised the $US83.05 is the price received inclusive of shipping costs. They used the term "realised". I was told it was very clear in announcement.

So that's a great selling price.

But this raises some major issues.

The Platts 62% average price for October was $US57.20 per tonne (remember it was only $US55.20 on 1/10 and dropped to $54.10 on 10/10).
For November the Platts 62% average price was $US71.87.
For December it was $US79.52.
For the quarter the average price was $US69.57.

If they were paid for the 65.3% grade that would result in a 5.32% increase to $US73.28.

GBG stated also that they got a 7% premium which would add another $US5.13 to $US78.13.

But GBG received $US83.05.

They received nearly $US5.00 more than they stated. Or they can't do the maths!

So my assessment on 24 Jan 2017 of $US79.20 excluding depreciation may be some near the mark except we have to add maintenance costs. Which as you have pointed out may be a major cost.

Interestingly so far this quarter there are 21 ships which should have departed by about 15 Feb. This makes a possible 42 for March quarter. If they continue exporting at that rate then should be 9m tonnes for year.

But this prediction excludes any shut down for maintenance.

For Jan 2017 the 62% Platts average price was $US80.27. Add 5.32% for 65.3 grade equals $US84.54. This is some $US11.26 above the comparable 65.3% Platts selling price for the Dec 16 quarter price of $US73.28 mentioned above.

Does this mean that they could have received $US84.54 + $US11.26 = $US95.80 for January sales?

Who knows with the veil between us and KML.

We will have to wait till April to know this answer but it will provide us with a better clue as to what is the real selling price.