GRR 2.08% 23.5¢ grange resources limited.

Yes I'm hoping this is a base case but it does principally...

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    Yes I'm hoping this is a base case but it does principally depend on prices and also the exchange rate - hopefully pellets shipped will be closer to 3 million than 2.5 million. C1 average costs shouldn't exceed $80/t even on the lower shipments.
    Annual maintenance shutdown is usually in February and in the past this has occurred over a 10 day period with it taking a further couple of days to ramp up to full production.
    State govt royalty is not included in reported C1 costs as it's virtually a tax rather than an operating cost although it's accounted for as the latter. It's interesting to note the calculation of the royalty which is made up of two components, namely a fixed rate that is a statutory 1.9% of revenue but as Grange produces a finished product in Tasmania they get a 20% discount on this rate and they also get a further discount from shifting its head office from Perth to Burnie a number of years ago, so their fixed rate is around 1.25% on revenue. The second component of the royalty is a profits rate that is payable each year that they are profitable and that is around 2.5% on revenue(after taking into account the above two discounts) - so in most years they are paying a royalty of around 3.75% on revenue.
 
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