There is a lot of confusion among we ill informed investors in...

There is a lot of confusion among we ill informed investors in WDR due to the woeful reporting by the company. One example being that all of the tonnages reported by WDR are wet mt whereas all of the contracts are in dry mt. Steel mills don't pay for moisture in the iron ore.

Another confusion arises with the "hedging contracts" these are in fact swap contracts (see half yearly report) and are for A$120/dmt for 62%Fe CFR. It doesn't matter what WDR ship they will still get or pay the difference between the prevailing price and A$120 for the amount of tonnes specified in the contract. They also have foreign exchange contracts in place of which little has been disclosed.

Thirdly the figure of A$105/dmt for the average sales price has been very poorly explained. There is a suggestion it includes swap losses from the hedging contracts but in my view the company needs to clarify these figures.

DYOR