Good pick up OzBlue and unless I am reading something wrong, a big discrepancy to what DF said at the meeting last week. He said the $50US including everything.
Additionally the Roadshow Presentation which looks like same presentation from last weeks shareholder meeting states "Break-even cost of production reduced to ~US$50 per tonne1 " and that note '1' is "1. IODEX 62%Fe CFR. China breakeven price defined by adjusted iron units, spot product FOB discount, moisture and full cash costs on the basis of targeted 14-15Mtpa run rate by year end. AUD:USD exchange rate of 0.785. Full cash costs include; C1 production costs, royalties, freight, corporate and administration, expensed exploration and evaluation, interest expense and sustaining capital expenditure. C1 Cash costs are inclusive of both contractors and Atlas’ costs within the total. "
So which is it? Massive massive difference. Even prospectus states Interest of 8.75% on US$269m in assumptions. The prospectus wouldn't want to be wrong. Imagine the legal implications when we decided to participate in the CR based on these assumptions.
I am phone company tomorrow. Perhaps today's footnote is wrong and pulled from an old report that normally excluded those items.
AGO Price at posting:
12.0¢ Sentiment: None Disclosure: Held
