gbg beats ago and fmg, page-6

Riddick appears to have underestimated the margin for gbg's pellets. if you look carefully at the presentation from which i assume he got his cost figure for pellets you will see the cost figure includes the market price not the cost price for concentrate. Riddicks cost of $128/t for pellets includes concentrate cost at US$73/t. this is FOB sales price. KML's FOB cost for concentrate will be US$34.50 FOB so the real cost for pellets is US$89/t (CIF) = much higer margin.