ARI 0.00% 2.2¢ a.c.n. 004 410 833 limited

Sagaro, Arrium cost of goods sold is (from FY14 Mining results...

  1. 169 Posts.
    Sagaro,

    Arrium cost of goods sold is (from FY14 Mining results )...

    (Revenue - EBITDA) / Tonnes = (1569 - 686) / 12.93 = AU$68.29

    Stripping is another $6 / tonne so AU$74.29

    AU$74.29 = US$69.46

    I look at AU$74.29 = US$69.46 as the CASH cost / tonne.

    Accounting DA = EBITDA - EBIT = (686 - 481) / 12.93 = AU$15.85 / T

    But this is a non cash number and includes infrastructure that is built.

    Even if you add COGS AU68.29 + accounting DA (AU$15.85) = AU$84.14 or US$78.68

    ALSO and this is really important Arrium has a much higher grade and gets a much higher % of the 62%fe price than others. So costs / tonne is only half of the calculation. You have also factor that in.
 
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