March Quarter Royalty and Media Report, page-14

I emailed CFE and said amongst other things that I agree with the announcements that there were 7 shipments in the quarter which were the following Bulk carriers and their tonnages as below.

Centrans century - 174333 t
Xin Tai Hai - 180346 t
Lancelot - 177028 t
Golden Beijing - 175820 t
Mystic 170039 - t
Malindi 177987 - t
KSL seattle 181015 - t departed 19 March 2015. (No ships since KSL Seattle sailed past Singapore on about 25 April 2015 no doubt heading to China)

That gives a Total Tonnage 1,236,568 tonnes which at US$2 a ton is US$2,473,136 or about A$3,201,861.

My opionion is that I do not believe that the ships were only loaded to 55% capacity to come at the low royalty announced.

The reply from CFE was:

"these numbers will need further verification from Timis Mining and if necessary adjustments will be made, I appreciate your feedback and concern, hopefully we can provide clarity shortly. "

Personally I hope it's a case of the cut off date for royalty payment is earlier than the end of the quarter and we do on average achieve at least the A$3,ooo,000 royalty per quarter.

This of course is dependant on Timis mining recommencing operations and I'm guessing that those operations have not commenced yet because firstly the issue of past benefits to workers from the London Mining operations needs to be resolved.

And secondly but perhaps more importantly it obviously makes commercial sense for Timis and Shandong to come to some form of commercial agreement on providing Marampa 64% ore to Shandong to increase their ore to at least the 62% content for sale/shipping as it will command a much higher price.

Things can happen quickly in the Iron Ore game so hopefully it's an upward swing for CFE from here on.