Ann: Quarterly Activities Report, page-67

I have been pondering this too. It was the most interesting part of the call IMO.

Ken came back and talked about it again, and he gave the impression the customers were happy to renegotiate the pricing formula.

Maybe the choice was, ”go with our new formula or we will sell spot market, but don’t worry you can have your contracted amount, just not exactly when you want it”.

The boot is on the other foot, OURS I think.

Could well be why the knuckle drag on POSCO too, better to get the right deal than a fast deal.

We don’t need it yet, plenty on their plates to generate revenue and profit, in what is still the early part of the cycle

As you know GXY are saying in excess of $600 US CIF this qtr so looks like the new provisional pricing is to get some of the benefit, even though there is likely a 1-2 months lag still, but better than 3-6months as per Ken in the call.

Also of interest was the Volume over grade comment. Again something that Simon at GXY had mentioned numerous times, appears that is the case in the market at the moment.

Interesting call and we’ll worth the listen.

All IMO of course.

Cheers