Interesting posts. JTang's arithmetic to arrive at a cost of...

Interesting posts. JTang's arithmetic to arrive at a cost of $A94 per tonne based on an average IO price of $A122 per tonne looks OK or have he & I missed something?

JTang wrote:
To calculate AGO’s total cost per ton using AGO’s own 2014 guidance:
Let’s assume that average iron ore price for 2014 is US$110 per ton or A$122 per ton.
1. Reduce price received by 6% for moisture: A$122 * 94% = A$114
2. Pay 9% for royalties: A$114 * 91% = A$104
3. Pay A$51 per ton C1 cash cost: A$104 - A$51 = A$53
4. Pay A$19 per ton amortization and depreciation: A$53 - A$19 = A$34
5. Pay A$4 per ton for corporate and admin: A$34 - A$4 = A$30
6. Pay A$2 per ton for exploration and evaluation: A$30 - A$2 = A$28
7. A$122 – A$28 = A$94 per ton
That is, if AGO receive A$122 per wet ton for its iron ore, it’s all inclusive cost is A$94 per tonne.

Richie's data is pretty compelling too.

So what has AGO done to p.....s off the big end of town?