Further to my post of 18 May, I think there is some good news...

Further to my post of 18 May, I think there is some good news with the new funding arrangement.

Karara borrowed some $US1,786m (correction to previous post the $US250m was in 2012 not 2011).

The new facility is for $US1,481.32m

It appears that there has been payment off the principal of some $304m.

Karara would also have paid interest during this period. A very low figure would be 4% which equates to $US71m per annum or nearly $280m since the last loan was sought (and this ignores the interest on the earlier loans of $US1,200m from Jan 2009 and $US336 from April 2011)

So since the first shipment on 18 Oct 2012 they have paid something in the order of $584m.

Total sales volume during that time has been 21.3m tonnes. Somehow they have managed to pay $US27 per tonne towards the principal and interest! And the earlier exports was just DSO, in fact Magnetite exports were only 25% of the total export - 2013 annual Report.

However there was the sale of the power lines which netted $82m which probably put towards the principal, but if this is the case it would be $US23.6 per tonne towards the principal and interest.

I think that is an incredible achievement.