Which is what it costs to mine a ton of iron ore in Canada for CLF..... BK with no chance of buyout...g**gle it, released on Bl**mberg 6 hours ago
It is somewhat real, they did say the IO would go to that price by the end of the 3Q. They did not however make any mention of the comments Frank says directly about CLF. It seems like most years there is a quarter with much lower prices then the rest of the year. The big point here form UBS is they have chosen a low price for 2013 much lower then most every other report I have seen.
that is below their direct mining costs and if you include all company costs the mining rate per ton sold varies between 125 to 140 per ton for the last 10 quarters, this is figured by taking their expenses and dividing the total amount of tons produced into it, that is not the total sold but produced as inventory changes up and down. This cost basis gives you a truer idea of what to expect rather than the mining cost that CLF publishes and is why they can not make a lot of money at 150 per ton IO
Please break this down. I know you have been on this board a long time RL- or at least someone with a very similar name was on the boards back in 2009 time frame.
What was the average revenue per ton for 2012? Wuick math would lead me to think ti was $118.25 in REVEUNE per ton for IO, this would be quick math using 42.2mm tons of IO sold. At that level they made money prior to the writedown. As in the had Operating income. Taking that one step further even taking out the $195 in interest expense they still had income of 546million. How do they not make money at $150 per ton, but they had both operating income and income after interest expense when they appear to have sold at an average of $118 per ton for 2012?