shipping included in fob costs, page-8

jayinaussie stated,

"Ian has no idea in the confusion by investors like myself in our FE Study calculations... Shipping IS INCL in FOB Costs"

Now I'm totally confused!

From the recent ASX announcement;

1. Likely FoB Sales = AUD $110-$125/tonne

2. Start up FoB Costs = AUD $55-$75/tonne

3. Operating costs in the first 3 years will be relatively high ($55-$75/tonne) since a large proportion of the start up capital costs are to be carried by contractors and paid back through higher operating charges.

4. Earliest (year 1) export options are likely to be limited to ships of 22,000 to 25,000 tonne capacity. Current freight costs would, therefore, be in the vicinity of $35-$40/tonne.

Now, am I correct in calculating that the total mining costs in the first three years will be relatively high YET ONLY $25-$35/tonne [i.e. $55-$75/tonne (total operating costs) less $35-$40/tonne (current freight costs)]

That couldn't be correct surely?

Jay, do you think that he was referring to "shipping costs" as being the "freight costs" from mine to port?

Stagman