Realised Pricing and RevenueThe June quarter average Platts 62% Fe CFR price (including shipping freight) was US$111/dmt comparedwith US$126/dmt in the preceding quarter. The average Platts CFR price for high-grade 65% Fe fines was US$124/dmt for the quarter, being a grade-adjusted 7% premium to the benchmark 62% Fe price, compared with US$140/dmt and 6% in the prior quarter. Lower prices during the June quarter were partly offset by the weaker Australian dollar, which averaged US$0.668 compared with US$0.684 in the prior quarter.Shipping freight rates for Panamax vessel journeys from Koolan Island to northern China ranged from US$12-14/tonne in the June quarter, compared with US$11-14/tonne in the preceding quarter. Current Panamax shipping freight rates for the Koolan to China journey are around US$11/wmt.Ore sales revenue totalled $186 million Free on Board (FOB, after shipping freight) for the quarter, reflecting an average realised price of US$103/dmt FOB for the period. At current prices, each high grade shipment from Koolan Island has a market value of approximately $11 million FOB (before royalties). Total ore sales revenue for FY23 totalled $451 million FOB, also at an average realised price of US$103/dmt FOB.Sales from Koolan Island are made under long term offtake agreements on FOB terms, with pricing referencing high-grade (65% Fe) market indices and Panamax shipping freight rates, specification adjustments and penalties for impurities. Provisional prices are recorded following shipment departure and the final pricing ultimately reflects monthly iron ore price averages up to two months after the month of shipment. Accordingly, the Company is subject to provisional pricing adjustments in subsequent periods.
MGX Price at posting:
44.5¢ Sentiment: Buy Disclosure: Held
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