GRR 0.00% 27.5¢ grange resources limited.

Quarterly predictions, page-561

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    I have now worked through the figures concerning unit prices for the September quarter. We had one HC contributor here that posted a communication from Management referring to Quotational Period adjustments(QP's) as the explanation for the drop in the unit prices and from that I've been able to piece together the puzzle.
    I had been under the illusion that for non-Shagang shipments that the QP was calculated on the average of all daily prices from the day the ship left Port Latta until it had finished unloading at its destination port. I also believed that for Shagang shipments that the QP extended for another 14 days before Final Invoicing.
    I have now worked out that the QP for non-Shagang shipments extends to the end of the following month after ore delivery and is worked out on the basis of average prices for that last calendar month. So if a shipment finishes unloading on 4th July - the shipment is priced on the average price for the month of August. With Shagang shipments the QP extends for an extra month, so in the above example the shipment is priced on the average price for the month of September.
    That's how I'll be pricing shipments in future. If the shipment hasn't completed its QP at the end of a quarter then its priced at the price on the last day(or last MB weekly price for Shagang ships) of that quarter .
    Completed schedule for Q3 attached.
    2018-20 Grange ships (Recovered).pdf
 
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