Some things to notice about this announcement (if you haven't already). 1) product is on grade. Please explain - in this ann it says that this charter has been negotiated at (low) USD $30's per tonne, and this is a 45% reduction from previous peak and this equates to 0.75 USD / dtmu. So the previous rate was US $55 / tonne meaning the saving is USD $25 / T. The only way that equates to 0.75 USD / dmtu is if the grade is 33% 2) production is increasing. Product on hand at the end of last quarter was 20KT and they were previously producing 16KT per month. Its a bit of a guess but I'd say the average production for Oct/Nov needs to be above 18KT / month to have sufficient product available portside for this charter. 3) I've re-done my calculations and now expect the current quarter to be cash flow negative -AUD $4.2M before becoming positive AUD $2.2 in Q1 2022.
All IMO and DYOR
E25 Price at posting:
$1.41 Sentiment: None Disclosure: Held
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