I decided to do a detailed calculation, including working out...

I decided to do a detailed calculation, including working out the 1/2 year results from scratch for the nickel... Something just does not add up!!

As far as I can tell the payable tonnes has gone down!! I'm pretty sure I have read before that CSM was getting 65% of the contained nickel value from BHP however on doing the calcs based in the 6 page report this just cannot be the case. It would appear that payable nickel was only 1145 tonnes which is about 56% of the contained nickel value. So the figures I did before are invalid based on this.

How did I come to this conclusion? simply by using CSM's currency hedging figre of 73.7 cents and this info from the 1/2 yearly report.

Nickel revenue increased by 19.2% to $30.4 million, while EBITDA for the nickel division increased 10.6% to $11.5 million. The average price received increased by 28.4% to US$8.86/lb (H2 FY06 US$6.90/lb) reflecting hedging arrangements in the H1 period; 92% of nickel tonnes for this period were hedged at an average price of US$8.16/lb.

revenue = 30.4 million AU, with .737 exchange rate this is US $22,404,800. the state the average price received was US $8.86/lb so that is US $19527.44 / tonne.

Therefore payable nickel tonnes must have been approx 1147.3 tonnes. contained nickel was 2023 tonnes therefore the percentage cut CSM got must have been 56.7% probably due to lower ore grade reducing the cost BHP was willing to pay.

I will re-do my calculations based on payable percentage being 56% of contained metal value, this will reduce the figures quite a lot.