I think the prices have not dropped more because the price was...

I think the prices have not dropped more because the price was quite low to start off with so I dont think anyone actually believed the last guidance about December nameplate.

They did mention in the report that they are making some good margins on the hermatite stuff so that may offset some of the loss in the premium stuff.

based on their long term average cost of $80 per tonne I am assuming this is the average for both magnetite and Hermatite and they had said nameplate was 8Mt of Magnetite so cost for 10Mt of both would be 800M. so to simplify things let just say the fixed cost are a high percentage of the cost so we can leave the 6month cost at 400M.

the assumptions I am making is IO $130 USD, exchange rate of 93Cents, no premium for magnetite and low grade at 10% discount.

based on their guidance we have

2.6M DSO at 130 =338M * 10% discount =304M USD or 327M AUD
1.5M at 130 =195M USD or 209AUD so the total turnover would be 535M AUD even if their cost was 400M we should still have some money left over to pay for some capital so I am abit worried about what the actually cost is after nameplate especially if we need another 200M till December