Hi,
It looks to me like GWR have out sourced the transport costs amongst other costs.
it looks like PRG will pick up the transport costs for the 700km haulage, is this your take on this also?
i know that GWR can exit as soon as the price drops within $10 per ton profit of the iron ore price.
I'm just wondering what the net cost before profit margin was?
( i couldn't find this hence the question, however i do understand that this might not be GWR's problem as PRG is a separate company and they seem to be fitting the bill for this, hence the 30%)
its good for GWR so long as the margin of $10 per tone for the ore gets maintained, like you say they have outsourced a lot of the costs.
Have a good evening.
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Ann: Term Sheet for Works Contract on C4 Iron Deposit Executed, page-43
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