RE:RE:RE:RE:Iron Ore st_esteban wrote:
You can listen to the questions related to iron ore around min 58 of the CC
...We do not talk about details of the first sale..it was profitable to the company (is not this obvious? why sell if this was not the case?) and reflective of the high market prices.
...we will continue to capitlize on the high IO prce going forward as it is expected to continue for the next couple of years
...regarding production cost... we are currently assigning all our costs to V production (so basically cost to produce IO = zero)
... there are costs directly associated with the sale
...No, the iron stockpile is not included as part of our inventory. there is no carrying value associated to it
There is no written transcript available for Q4-20 CC. Thanks to st_esteban we have the above post regarding iron ore (dated:3/19/2021).
So in the Q4-20 CC, Management told us that the costs related to the sales of iron ore were supposed to be minimal (no production costs, just Selling expenses).
Now in Q2-21 they reported that “operating costs in Q2 2021 were partially offset by a margin on iron ore sales of $0.1 million". A margin of US$0/1M on the first sale of 14,000 tonnes + a couple more with local customers in Brazil? WTF!