Well that is what I initially thought, but I believe the cost...

Well that is what I initially thought, but I believe the cost may still be incurred.

Yes, FOB, means the JV (Karara - GBG/Ansteel JV) pays for the ore right up until it is loaded on the ship. However I am not sure if they reduce the price paid to incorporate the shipping cost?

I'll send an email to GBG. Has anyone got clarification on this? Ie from the company?

The $150m would have a significant effect on the EPS. Infact without it, my EPS would be $0.15 (up from $0.114).

Please note that production at 10mtpa (8 mag, 2 DSO) doesn't start until at least April 2013, so this model is based on 30 June 2014 year end. I haven't bothered doing a DCF on my new spreadsheet.