So a 25% drop in I.O. prices equates to a 45% drop in the share...

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J.W.Pepper

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13/06/14

10:18

Post #: 13519925
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Originally posted by er6n ↑

According to U-Metal as of today they are currently getting less than $75/dmt US for their standard fines.
Which is $79.58/dmt AUD and In wet metric tonnes that is approximately $74/wmt AUD

For the value fines if we use last quarters discount which was 25.45% difference then the figure for the value fines is currently $55.16/wmt AUD.

In the all in cash EBITDA figure the company produces they combine the standard and value fines into one.

In the all in cash cost figure they also combine the standard and value fines into one and come up with a figure of $75/wmt AUD including freight.

The value fines currently represent 8% of production as of last quarter!

On these figures Before D&A they will be looking at a loss of $7.52Million Australian dollars per quarter or $30 Million dollars a year!

After D&A which is currently $20/wmt AUD we are looking at a loss of $270 Million Australian Dollars per year.
However the D&A is supposed to drop by $5 in the coming months so another figure would be a loss of $210 Million Australian dollars per year!

Lets not forget Cap.EX of 100Million Dollars and the fact that most analyst are now predicting the Iron Ore price to drop further!

These figures are fairly generous as most of the cargoes for less than 58% grade were a lot less than $75/dmt US!

If you factor in the rising Australian Dollar it is not a good picture! This is why the share price is going down and will continue to do so until the Iron Ore price improves!

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So a 25% drop in I.O. prices equates to a 45% drop in the share price?

AGO Price at posting: 60.2¢ Sentiment: Hold Disclosure: Held
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