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2,516 Posts.
131
01/11/12
10:38
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They are shipping from a stockpile of 1.8Mt of DSO.
If we think about it. The mining and crushing costs have already been accounted for up to the Sept. quarterly.
Therefore, it's only the transport cost that now comes off.
So if we say they are getting an average $115 per ton. Based on the 62% fe price of $120 approx.
Approx. profit would be $115 minus say $15 transport, gives a $100 per ton profit.
Some people may have missed this point that the production costs have been previously accounted for.
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