Atlas has claimed their costs are around the $US48-50/t due to the collaboration with the contractors, yet the price of Iron Ore continues to decline. From the market watch website....
"It’s another ugly day for iron ore, with analysts fretting about a big round number falling by the wayside.
Iron ore futures on Monday dropped below a closely watched level in Singapore trading — $40 a metric ton — for the first time ever.
It’s just the latest commodity to keep crumbling and spur worries about global economic growth."
62% platt's just fell below $40/t for May 2016. AGO by supplying 57% IO has about a 20% discount to the platt's price. That means $US32/t or there abouts.
That is an $18/t discrepancy or in other words loss.
Every tonne out is now losing a lot of money, so why are management still in the game? Why are they still shipping IO and losing money on every tonne?
Surely this is madness, why is it still happening?
Do management have to lose every cent of cash before they stop?
What sort of crazy world do we live in where money that could go to the creditors it is owed to, goes into losing MORE money with every tonne shipped?
Reality Check
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