Shiploads of Cash

Just a quick calculation to put the cash flow into perspective with some back of the envelope calcs.

Let's assume the most recent shipload of 38,000 Wet Metric Tonnes equates to 35,000 Dry Metric Tonnes.

Given that cash was received prior to June 30th, let's assume a 62% Fe price around that period of circa US$220/t.

Gross Revenue: 35,000t @ US$220 = AUD$10.4m (at USD74c)

Net Revenue after the cost of US$60/t : 35,000t @ margin per tonne US$160 = AUD$7.56m (at USD74c)

This is a rough calculation of the cash generated from the first shipload - It's a Shipload!
The ramp-up cost for this early shipment may be higher than US$60/t as that is an estimate based on the full production capacity. Our bank balance continues to grow whilst the Fe price remains above or US$60/t cost.

Regards

Pihrana