Break Even???, page-2

The cash cost was $US61 per tonne.

The cash cost excluded:
"depreciation and amortisation, corporate administration, sale, royalties, ocean freight, interest and financing costs".

An assessment of depreciation and amortisation is somewhere between $US15 to $US30 per tonne, but this is a non-cash items so while important it is not important with respect to cash.

Corporate admin - my guess $US8m per annum or $US1 per tonne.

Sales - have no idea - haven't we got all quantities going to Ansteel - but if KML has a sales force $US2m or $US25c per tonne.

Royalties $US1.40 per tonne refer to FMG 24 Feb 2016 Corporate presentation.

Shipping $US3.50 per tonne ditto.

Interest and finance costs - $US1.7b at 3% = $US51m = $US6.50 per tonne.

Cost excluding depreciation: $US61 + $US1 + $US.25 + $US1.40 + $US3.50 + $US6.50 = $US73.65.

Sales $US59.93 per tonne.

Loss per tonne = $US14.72 or for 1.8m tonnes = $26.50m for quarter or $US8.83 per month, so $200m loan should last 23 months.

Cost including depreciation $US73.65 + $US15 to $US30 = $US88.65 to $US103.65.

My assessment of average price of 65.3% Fe for Sept quarter is $US60.245, but all depends upon which day they shipped the material.

Can anybody have a look at these figures and make any adjustments they see fit. The debt may be $US1.9b as a result of extra $US200m loan.