Ann: Quarterly Activity Report - Q2 FY25, page-85

@maxkieh@boomeronrations
Hi All. The question of revenue per ton (price received by MIN) needs to be clearly understood.

I always took FOB as the price received by the seller, but the seller needs to load the onto the ship. The buyer would organise the shipping and pay for insurance freight and unload at the destination. Just to check my understanding I asked the question to Copilot, and it returned my understanding. Phew!
The major advantage is the differential between selling USD and incurring costs in AUD, and the cost number being lower. Out of that yes we would have to pay royalties, tax and all costs of production and transport UP TO the shipping port, for MIN Res this will include the Trans shipper to the Shipping anchorage.

To boomeronations point, I've seen posts on HC for Lithium where people have talked of price to the buyers port. I hope that is not true, but I don't think FOB acronym should be used in that case.

Question to Copilot:
what does FOB mean related to Mineral Resources Iron Ore price?
Copilot response

In the context of mineral resources and iron ore prices, FOB stands for "Free On Board". This term is used in international shipping and trade to indicate that the seller is responsible for delivering the goods onto a ship specified by the buyer, at a specified port of departure1. Once the goods are loaded onto the ship, the responsibility and ownership transfer to the buyer.

In simpler terms, the price quoted as FOB includes the cost of the iron ore up to the point it is loaded onto the ship, but it does not cover the cost of shipping the ore to its final destination.