I was looking back at some of the presentations and...

I was looking back at some of the presentations and announcements from FMS.  This one particularly caught my eye and is well worth a look - http://www.flindersmines.com/lib/pdf/asx/fms_asx20150529.pdf#page=8&zoom=auto,78,-5

Take a close look at slide 7.  Note the Minegate Costs of $20 which could come down substantially at $45Mtpa.  Maybe $10-$14/t including admin?  Take a particularly good look at the BBIG charges and to me they seem rather high.  A service fee of $25 (less $5), Port and Rail Fees $10, Shipping $10 and a participation fee.  All up $40+!  Now consider this when FMG C1 cost are, if I remember correctly, around $14/t!

So, some back of a fag packet calcs.  May be wrong but my best guesses and I welcome input and corrections.

I would expect all mining and shipping cost to be around the A$40 mark, or even less,  given the planned increase in production to 45Mtpa.

Let's assume and IO price of $60USD

IO (62%) price $60USD
IO (58%) price $48USD afer discount
IO (58%) price $64AUD

Mining/Benef/Admin/t   $14
State Royalties etc/t $5.5
Loan Repayments/t   $2
BBIG Load/Transport/Ship etc/t   $20

Total A$41.50  (which seems realistic to me.  Could be more or less)

Margin/t A$22.5

@45MTPA Margin A$1012.5M per annum before taxes etc

TIO get 54% of this which is about A$547m pa!

Note that the above is based on US$60/t

Divide the $1012m pa by number of shares issued and see what you get!

Now all the above could be flawed.  Seems too good or does it?  Interested in others thoughts and happy to be corrected.

Cheers, PS

	Column 1