I have been doing some research on the total exports and have...

I have been doing some research on the total exports and have got some interesting results.

On 8 Feb 2013 GBG gave an interview. http://www.asx.com.au/asxpdf/20130208/pdf/42cxjtldz8lg26.pdf

At that interview they said cash cost would be $AUD74 - $76 per tonne. This excluded all the other items of depreciation financing etc.

But what would the cost be based on? I can only assume that the $AUD74- $76 was based on 8 million tonnes of magnetite per annum. If you don't export 8m tonnes of magnetite the rate will be higher.

So simplistically the total cost would be $AUD600m pa (8m tonne x $AUD75).

A lot of the costs are fixed and especially the rail because of the contract.

The total exports of magnetite is set out in the table below (hopefully table won't get messed up by HC:

	Column 1	Column 2	Column 3	Column 4
0		Fe DSO	Magnetite	Total
1	Jun-13	4,392,128	1,007,872	5,400,000
2	Jun-14	4,348,933	3,931,067	8,280,000
3	Jun-15	3,559,512	5,361,791	8,921,303
4	Jun-16	1,257,461	6,962,539	8,220,000
5	Jun-17		8,500,000	8,500,000
6		13,558,034	25,763,269	39,321,303

July 17 figures are projected for whole year (6.6m to end of Mar 17).

These figures show that GBG has never achieved the 8m tonnes of magnetite and therefore the cost per tonne has to be higher. How much higher is difficult to assess.

This will be the first FY that magnetite has reached nameplate capacity.

I am currently trying to figure out the approximate actual cost per month based on $AUD.

When they started exporting magnetite ore in 2013 the AUD to US was 1.049 to 1 which was a disadvantage to GBG.

My preliminary figures point to an accumulated loss of nearly $AUD300m since magnetite exports commenced. But GBG did make money on the Fe DSO exports and this is already included in the AUD$300m loss.