Tomboy Could you please explain the following from your post...

Tomboy

Could you please explain the following from your post #15248960 last night at 20:59:

"At LJ no such cut out as the LJ mill concentrates the ore then is sold to buyers like jinchuan at full price ex royalty.. bhp middleman bully boy removed"

My question relates to the 'FULL PRICE' ex royalty. What is this 'FULL PRICE'.

Jinchuan imports around 13,000 tonnes of nickel in concentrate (that's about 85,000 tonnes concentrate) each year. The following happens to this concentrate:

1) It is sent by road to Esperance which is approximately 300 km by road.
2) It is sent by ship to a port in China.
3) Is sent by road a couple of thousand km to Gansu Province in north-west China.
4) It is then processed through the smelter (I was involved in the commissioning of their first Flash Furnace in the early 90's)
5) It is then processed through the refinery. Note - approximately 3% of this nickel is lost in the waste streams through the smelter and the refinery.
6) With all of the above you need to add the smelting and refining costs.

So if Jinchuan pay 'FULL PRICE ex royalty' and then have to pay for all the transport costs, processing costs and lose around 3% of this nickel in their waste streams then how in the hell do they ever make a profit.

My understanding is that those 'Bullies from Jinchuan' (the head of their Australian office is a friend of mine) probably pay around 80% of the LME nickel price keeping 20% for themselves. I guess it goes to paying for the above as well as making some profit.

Am I a down ramper. NO WAY. Just a person that is a bit 'THICK' that is sick of 'BULLSHITE' artists.

So, once again, can you please explain 'FULL PRICE'.