It is interesting to see the board of GBG at last have some...

It is interesting to see the board of GBG at last have some transparency. Thank you.

The average US$ to AUD$ for March quarter was $US.7577. (but this depends upon exactly what day the ship departed.)

Using this the cost was $US59.71 (AUD$78.79).

The sale price $US99.86(AUD131.78).

This means a margin of $US40.16 per tonne but excludes the following.

My previous assessment of:

depreciation and amortisation, corporate administration, exploration, sales, royalties, ocean freight, interest and financing costs was in the order of $US29. GBG still silent on the actual cost of this. Could be much higher but I don't think we will ever know. Total all up cost could be $US89.00 per t.

This means GBG MIGHT HAVE made $US11.00 per tonne for 2.066m tonnes or $22.5m for the quarter.
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Given a debt of $US2.2b, that should take 98 quarters to pay of debt - or 24.5 years.

The best iron ore price since 4/11/13 was on 5/12/13 for $US137.70 (oh for those days) but that was before GBG went on its cost savings.

Lowest price $US37.00 per tonne (14/12/15).

But GBG values investment in KML as NIL.

Latest price $66.60 so KML now losing $US23 per tonne. If it stays at this price for quarter it will wipe out margin for March qrtr.