It is interesting to see the board of GBG at last have some transparency. Thank you.
The average US$ to AUD$ for March quarter was $US.7577. (but this depends upon exactly what day the ship departed.)
Using this the cost was $US59.71 (AUD$78.79).
The sale price $US99.86(AUD131.78).
This means a margin of $US40.16 per tonne but excludes the following.
My previous assessment of:
depreciation and amortisation, corporate administration, exploration, sales, royalties, ocean freight, interest and financing costs was in the order of $US29. GBG still silent on the actual cost of this. Could be much higher but I don't think we will ever know. Total all up cost could be $US89.00 per t.
This means GBG MIGHT HAVE made $US11.00 per tonne for 2.066m tonnes or $22.5m for the quarter.
Given a debt of $US2.2b, that should take 98 quarters to pay of debt - or 24.5 years.
The best iron ore price since 4/11/13 was on 5/12/13 for $US137.70 (oh for those days) but that was before GBG went on its cost savings.
Lowest price $US37.00 per tonne (14/12/15).
But GBG values investment in KML as NIL.
Latest price $66.60 so KML now losing $US23 per tonne. If it stays at this price for quarter it will wipe out margin for March qrtr.
