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The point of sale to Atlas Iron will be prior to the run of mine (ROM) pad stockpile. Altura will pay a fee to Atlas for utilising the infrastructure required for transporting the ore and marketing fee for the ore sold while paying 30% of the direct capital costs up to the point of delivery of the ore at the ROM pad.
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The breakeven point for a product is the point where total revenue received equals the total costs associated with the sale of the product. It has certain assumptions such as, selling prices will remain constant at all sales level, there is a linear relationship between sales volume and costs and production and sales quantities are equal.
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