Pellet Price, page-55

Miningnut, I like your logic around the receivables and wish amounts were paid within 14 days. Last quarter sales were $50.5m(approx), however, receivables at the end of the quarter were $34.5m. Using the logic from the annual report of 14 days from BOL date, on rough numbers, this means that 68% of tonnes shipped during the quarter, were sold in the last 2 weeks of the quarter to have a receivable of $34.5 m at the end of the quarter.

Given that each ship carries about 80,ooo tonnes and they are sailing every 2 weeks at the moment, the maximum they should have as a receivable would be 160,000 tonnes. At A$133 this would equate to a receivable of $21 m.

The reality is, GRR probably shipped 80,000 tonnes in the last 2 weeks of the month. I haven't got the data for when each ship sailed for Sept quarter. Daicosisgood may have the historic data for when the ships left Port Latta.

Only the company would know, whats really going on re receivables. I'll watch the shipments at the end of this quarter, to see if the 14 days from BOL, is actually happening.

It would be interesting to see an aged receivables report from the company, as part of the accounts.

Hopefully, they will collect most out-standings by the 31/12/17.


DYOR