Ann: Quarterly Activities Report, page-2

Well this is good news.

Further to my earlier cost analysis I now make the following comments.

My previous calculations included an additional cost for shipping, but my reading of the realised price of $US83.05 means that shipping costs are already deducted.

The cost has been reduced to $US52.  Now this is probably a result of the increased total sales to 2.2m tonnes.

We are now looking more like having 9m tonnes exports this year. So this reduces the repayments and finance costs on a per tonne basis.

Revised costs now per tonne:
$US52.00 base cost
$US  1.00 admin
$US .25 sales
$US  1.40 Royalties
$US    0 Shipping
$US10.55 Finance costs
$US14.00 Repayments
$US79.20 TOTAL excluding depreciation

Sales  $83.05

Margin $US4.30 per tonne or $US38.7m

But how long can Fe price stay at $83.05?

Check to see if I have made any mistakes. Thanks.