I don’t think the IE report indicated any likely revenues. Here...

I don’t think the IE report indicated any likely revenues. Here are some figures from FMG Quarterly for Dec 2019 quarter that may be useful for some discussion.

PIOP target production is said to be 50mtpa. FMG shipped 46.4mt for the December quarter so a similar figure to FMS planned annual rate.

FMG shipped 46.4mt, C1 cost US$12.54 (~A$17.91@70cAUD)
Price realisation averaging 86% of benchmark 62% CFR index.
Average revenue received US$76/dmt ( ~A108.57)
Depreciation and amortisation US$7.70/wmt (~A$11) guidance

So revenue of 46.4mt x ave rev ~A108.57 = ~A$5037,648,000.

This would be more @50mtpa.

With FMS PIOP appearing to have this sort of potential returns pa it makes me wonder just why a really decent acceptable deal has not been put forward. Now if the pathetic 2.5% royalty was to be applied that would see a miserable maximum 3-3.5c/sh return on stunning revenues. Guess who gets the rest? Simply not good enough in my opinion. What would we have got under the proposed agreement if taking the production option? WHO KNOWS, SIMPLY TOO HARD TO WORK OUT FROM THE PROPOSED AGREEMENT IMO!

Can anyone else come up with a figure?

More on what’s wrong with the proposed Agreement later.

Please check my figures and assumptions as I do make errors. Also not sure that there is a direct correlation between mt and dmt. Any comments and corrections welcome. Thanks.