"also the price of iron ore is expected to fall to no less than...

"also the price of iron ore is expected to fall to no less than $80 dollars per tonne......even if that scenario eventuates, that still leaves venture with a minimum of $30 per tonne which is still an excellent viable operation..."

That's rubbish. VMS have only told us the FOB cost for riley..A$47 per tonne. They have not told us there break even price.

Lets look at shree...

Targeted cash cost base:

~A$59/wmt FOB Port Burnie

~A$82/wmt CFR China (including royalties)

Clearly they got those figures wrong as they have been unable to make a profit at current Iron Ore prices.

Their FOB is $12 more, so lets take that $12 off their CFR cost to get approximatlty what VMS's true costs are.

82-12= $70

Now lets assume that VMS also got their costings wrong by say 10% and add 7 bucks. Which gives us A$77 a tonne. Now if Iron Ore drops to US$80 Riley will struggle or run at a loss as they will get less than the spot price. Even at current Iron ore price of US$100 it's not the cash cow it once was.

Gotta agree with everything Fancypants said....

Fish, Shareholders are lazy and the board will never be rolled.

MrQ, VMS and the FEd gov have already been awarded cost haven't they? Why would they need to couch anything...

But as Petety like to say, I'm just whining and talking rubbish, so don't mind me:)