silence on ever-falling wdr share price, page-19

I think the market has been spooked by the recent quarterly report. Specifically the downgrade in the price received for the shipped product. I think that most shareholders assumed that WDR would have averaged over A$120/t given that 2/3 of the planned tonnage was hedged at that price. If they are only receiving $A105 then this downgrades the project.

However looking forward things should improve if there are no more stuff-ups. The proposed shipments for the June quarter are: April 150,000t (already shipped), May 250,000t (planned) and June 250,000t (planned). At a iron ore price of say $A110 this will give a cash flow of $A71.5M. WDR appendix 5B estimated cash outflows for the June Qtr of $A65, so we should be in surplus.

DYOR