Rcman Average interest rate on loan facilities stands at 5.30%...

Rcman

Average interest rate on loan facilities stands at 5.30%
Guidance = 160.0mt ore mined and sold
Interest saving = $1.4b @ 5.30+ USD$74.0m or $0.46 a mt

Being more conservative let's examine a more realistic short term scenario?:

1 - Ore mined and shipped does not increase past 16.0mt
2 - Quality of ore grade does not increase and discount is as high as 20.0% of Platts 62.0% index
3 - Downers contract cost saving = USD$3.30mt on 59.0mt, which equals = USD$1.20 overall saving per mt on 16.0mt output.
4 - IO price (currently at US$62.00mt, increases by $3.00 to $65.0mt and averages at this price for some time as a minimum. Additional profit = $3.00 @ 80.00% = $2.40mt
4 - USD/AUD drops to $0.75 from $0.78 a drop of $0.03, saving $0.25 * 3 = $0.75mt

Additional profit based on above:

Increase in IO Price by $3.00 = $2.40
Dollar decline by $0.03 = $0.75
Downer Contract saving = $1.20
Total = $4.35

Based on the above scenario which us using conservative assumptions in the short term, cash profits would increase by USD$696.0m ($4.35 @ 160.0mt)

Any further cut costs or reduction in discount allowed from say 20.0% to 10.0% would impact the cash profit significantly

PS. Lamb on spit at my place once price gets above $4.00 (remember the good old days when it hit $6.00 (with yours truly not taking the profits) shortly after this wife stopped serving Greek food and I was force fed Spam.