Dwarves and Middle Earth, page-50

re C1 costs ... yes, it really is a mystery box and I could never sensibly emulate it because:

1. so long as the STDSF was under construction, I suspect real c1 cost elements were being sunk there... hopefully that creative accounting opportunity is gone;

2. my view is that in reality GRR's c1 cost is substantially fixed, somewhere between A$45m -> 50m. basically they operate x trucks requiring y people who are dutifully overseen by z supervisors blah blah blah. the kilns and the pipe and the mills are turned on Monday and turned off some weeks/months/years later. Therefore costs are fixed despite sales and production volumes. I was trying to use this assumption to better understand C1 but see 1 above ...;

3. I was watching shipments ex Port Latta as basis of sold volumes ... see marinetarffic ... that sort of worked ok largely because shipments are lumby ie circa 90kT per load.

4. but where I came hopeless unstuck was inventory volumes and movements ... and am still hopelessly stuck! At times it looked like the new STSDF creative accounting pot...

5. FWIW there is I suspect some pressure on c1 costs especially those underpinned by energy. the mill and pipeline is energy intensive and Tasmania is not without it's own problems.

Otherwise, I'm not sure I could add anything o a C1 wild backside guess estimate.

short version sharky... no idea how to sensibly second guess C1 costs!

have a great day.