Is Karara now profitable ??, page-81

It appears that KML management has problems with shipping (this may be remedied in the next couple of day) or it may be processing problems at Karara.

We have ships departing on the 9 June (Rosco Litchi), possibly on 11 June (Viteocean), 14
June (Darya Devi0 and on 22 June (Sea Pearl).

The rate which GBG ships have departed Geraldton this FY18 has been at 2.84 for a total of possibly 129 ships for the year giving total exports in the order 7.77Mt.

However on 17 May I posted and said at the current rate (at that time) the expected FY18 exports would be in the order of 8.114m tonnes - instead of getting 12 ships out in June we will probably only get 7. A loss of $AUD32m in exports.

We are going to have a drop from last years 8.52Mt of 9.65%.

The other negative impact for KML is that the cost per tonne of $Aud85.54 (excluding depreciation and amortisation, corporate administration, sale, royalties, ocean freight, interest and financing costs).

I will advise if shipping rate increases before 30 June.