I have just had a look at Atlas Iron ore annual accounts for...

I have just had a look at Atlas Iron ore annual accounts for 2016 .

It costs them about $AUD7 for shipping costs (separate from haulage costs) or about $US5.20 per tonne.

This would add $US3.80 to my recent cost of $US75 to $US85 per tonne.

So I think the real KML cost is in the order of at least $US80 to $$US90 if we are lucky.

But go to https://www.businessnews.com.au/article/Pellet-prices-put-Sino-Karara-in-play
(refer to Anthony09) which says $US25-US35 premium for pellets.

KML doesn't produce pellets but does magnetite - KML should be getting at least $U10 to $US15 more for magnetite and more for Fe 65.3% grade which is 5.32% higher than FE 62% Platts.

KML should be receiving at least $US79.90 (current Fe62%) + $4.25 (for 65.3%) + $US10 or 15 (for magnetite) = $US94.15 or $99.15.

So at this price we should be in the black.

But as I have stated before it appears that KML is being underpaid by Ansteel.

If KML is only receiving 85c premium, then the GBG shareholders should demand a review of the apparent unfair contract.