Iron ore price, page-896

From the September quarterly



Been a while but from my farming days these calls are way in the money, correct? Minus the cost of the puts this should be a handsome sum. More interesting is the 2 million or so tonnes of production without forward price fixing. I read somewhere that 58% Fe was bringing $72 ton USD when the 62% FE was $82 ton USD or approx $100 ton AUD at the moment.  Below is a chart showing the weekly prices this quarter.



I'd guesstimate an average price of approx. USD $70 ton  for the quarter so far or approx.AUD $90 ton. Given production costs of approx AUD $53 ton a few more weeks of these prices(which  should be supported by Chinese banks being instructed to cut credit to steelmakers to reduce overcapacity) the Atlas net debt position might be taking a fair old whipping.

from the Sept. Quarterly.



so net debt was approx AUD $75 million at the end of October and with strong iron ore prices since the debt position could be rapidly approaching zero. Might account for Fridays trading. Chart is looking fantastic. Would like to hear other posters feedback on my back of envelope calculations.