At your $425 = price that's (4.25US$DMTU)I will not allow 53%...

At your $425 = price that's (4.25US$DMTU)

I will not allow 53% because it is not proven that this grade can be maintained over the area to be mined, until measured.

I will use the min grade in the contract. 48%

48% of $425. is $204 before costs.
E.g
"This procing structure is commonly used for manganese ore sales (as opposed to pure manganese metal). A typical manganese ore would grade 45% Manganese so a price per tonne of this 'impure' ore would be 45% of $800/tonne = $360/tonne."

http://wiki.answers.com/Q/What_does_8_US_dollars_per_dmtu_imply_when_refering_to_price_of_manganese


Clearly the JB article which he states $250 and up to $300 is giving best case. e.g and grade of 57%.

The high grade Manganese ore benchmark price remained unchanged in Q4 2011 at US$5.30/dmtu CIF China.(before decline)

US$5.30/dmtu CIF or $530 at 57% grade = $302.10
US$5.30/dmtu CIF or $530 at 48% grade = $254.00

The price has dropped below this.
If we use best case grade (57%) of $425.

He stated they wanted 53%

53% of $425 = $225.25. This is before costs.
If you use $135 costs that leaves = $90.

Is is this right? Would be interested to hear for you, lory, sparkler etc. To see if I have this right.

Also. There is a 3% gov royalty and a $1 per ton royalty that also needs to be deducted.

Half year
(iv) The Company will also pay a $1 per tonne royalty to parties nominated by AAMD as consideration for
the acquisition. It is impossible to estimate the total amount of royalties payable, if any, at 31
December 2011 or the date of this report; the Company will expense royalties, if any, as they are incurred.
Page 17

It is unclear if this is shipped lump ton or dmt.