Iron Ore Price, page-2661

Hi Flip

Is price and wet discount fixed or does it vary? Is it a $ amount or is it a percentage?
According to the figures, the overall price discount is $8. So if the spot is $50, the discount is 16%. If spot drops to $40, the discount increases to 20%. At spot of $100, the discount is 8%. Is that how it works?
When the accounts are published will we see sales stated at realised prices or at spot price? Are they not at realised prices? Hence the discount is taken against sales and not added to cost of sales. Also, when is the "wet" discount known?
Again, going on the 2015 accounts, the realised price was on average at a 23% discount to spot. And the average spot for the year was higher than now.
The implied discount on $50 spot is now 16%.
We have seen the very good results achieved with C1 in the first quarter. And that is great work by management. But that does not explain a drop from 23% to 16% overall. Go back and look at the June quarter results. The discount was still running at above 20%. So what has happened from June to September for the dramatic improvement?

I am not disputing that Q1 cash flows were great. I hope that this will continue in the future. But from the above do you see why some of us are careful in not extrapolating one quarter results?

Pear