Hard Coking Coal, page-42

FROM STANMORE QTLY.

The resulting price environment for premium hard coking coal through the quarter has been an increase from US$233
per tonne at the outset of the period, up to US$333 at the end of September with further transactions pushing
the market above this level in October. Availability for non-premium grades of metallurgical coal has not been as
tight as prime hard coking coal, and Russian competition for a number of non-prime grades has impacted
relativity for these grades, although the market has segmented with differential pricing for FOB Australian
benchmark quality PCI material. PCI relativity declined to 60% of prime low volatile hard coking coal at the close
of the quarter, compared to the average relativity of 64% through the quarter.

PCI Approximately $US200 OR $AUD315

Has to be profitable on these numbers. Surely a margin of $AUD115 per saleable tonne of PCI.
Is the 308kt referred to below PCI? Any HCC?
Assume balance was thermal at $US155 OR $AUD244.Margin of $AUD50.

“In addition, we are in line with our quarterly guidance having shipped a record tonnage of over
562kt of coal product in 10 vessels during the quarter, of which 308kt (55%) was metallurgical
coal.”
PCI 308 X 115 = 35M
Thermal 254 x 50 = 12.7M
TOTAL FOR QTR = 47.7M AUD Operating Profit.

Lets see.