js2010copperI think there might be bit of confusion on the...

js2010copper

I think there might be bit of confusion on the incoterms and costs per tonne which can be somewhat deceiving to readers of studies of a PFS/DFS/BFS etc.
As a rule of thumb from previous involvement with feasibility studies, the incoterm FOB is generally used as a guide only.
The cost of AUD56 FOB is the cost to mine, process and deliver Free On Board a vessel at the Port of Burnie to VMS.
The additional costs of shipping are not included in the incoterms FOB Burnie, and based on what was announced today by VMS, they have booked a ship, which indicates they are most likely using CFR (cost + freight) or CIF (cost + insurance + freight) (then name the port of discharge in China to offload) in the sales contract.
The market rate for that size vessel (ultramax) from Burnie to China are in the range of USD48-50 per tonne as I indicated a while back.
If you use a combination of the numbers AUD 56 + ~65 (USD48) = AUD111 for an estimated cost all in to VMS.

Using the most applicable price from the table below, you will be able to estimate the profit per tonne for this shipment.
Obviously the spot price for the product and the shipping rates to change, but handy to use as a guide whilst we wait for quarterly disclosure going forward.




I hope this helps.

IMO
DYOR