hi To be honest I loathe looking at accounts on ASX announcements and last time I analyzed this was in 2019. Has the pricing mechanisms changed in the interim?
If something is not clear from MRL, always report it to ASX.
That’s the best way to be sure you’ve got the better information.
I believe it is CIF - not FOB- as that is what Chinese do. Pricing is apparently better overall for seller too.
I take your word from it on this ”...The 2020 annual report from MRL indicates that they sold 6% & 4% for an average price of $597 (all exported)...”
I don’t think it’s feasible to combine SC6 and SC4, for our purpose here. My data is derived from 2019 figures into Q2. I am of the view the pricing mechanisms have not changed but of course the concentrate/s could have. Also, you may have to take out the tantalum credit. Sometimes this is not separated out?
my 2019 May notes on PLS
For PLS, losing money, their pricing formula is lagged 6 months. It has consistently underperformed MIN by 20 to 25%. MIN forecasting a 13% drop for next Qtr so PLS (removing tantalum income) of USD 602/t dropping 13% puts PLS in a further loss making position. -You may wish to track that.
Also, product is real time sold on a WMT basis but is reported on a DMT basis. This is important to note especially with ore variability changing the conditions of final coarse fines concentrate mix and hence moisture levels where it is well over 10% due to flotation cycle. Therefore the sale price could be 15% lower is a moot point.
This is why in a previous post, I asked about PLS publishing the full data, if it’s so confident with its product/s.
(20min delay)