Ann: GRR - Quarterly Report for 3 months ended 30 September 2017, page-34

Guys,

A very important takeaway from the quarterly. The FOB price received was 105 USD per ton. This mean probably 120 CFR USD. This price was basically recorded from September onwards as in August and July it averaged 105 CFR.
This means the company really ramped up sales in September when the pellet price was 125 USD CFR so as to increase the quarter average. So going forward production volumes will really hold up.
Based on this alone C1 costs will drop to 75 USD. If you use 85 C1 as your cash cost base (this figures includes pre-strip and walls cutback) and you adjust it for an increase 640 kT production you can arrive at this:
85 x 550 (Sept. Q Volume) = 46.75 million AUD
46,750 / 640 = 73 AUD C1 per ton

This important to understand as the pellet price will probably ease but the C1 will also come down. And the beauty of the deal is that we have incurred all capex now (STDM, Mill change. Fleet upgrade, North Pit Pre-strip). So we are bullet proof cash cow!