It is interesting to note the minimal margin GBG gets for it...

It is interesting to note the minimal margin GBG gets for it product.

Grange (GRR) export hematite pellets and for the June quarter received $US67.69 (FOB Port Latta Tasmania) (http://www.grangeresources.com.au/c...s_-_report_for_quarter_ended_30_june_2016.pdf) , i.e they didn't have to pay freight.  Freight would be about $US3.50 per tonne, so that make their comparison cost with GBG of $US71.19 per tonne.

Whereas GBG received $US64.50 or $US0.85 per tonne premium for hematite concentrate.

I don't think the GRR pellets have such a large margin to GBG fines.

I think Ansteel is taking advantage of its shareholding in GBG to keep the price low.

On another matter, current shipping rates for 2017 FY seems to indicate a total export of 7.3m tonnes compared to 8.4m tonnes for 2016 FY.  This is a drop of 13.7%.

This is not good as it will increase the base cost per tonne.