Hi jb.
I don't want to be argumentative about specifics but I don't think you are correct and these numbers are quite important.
Page 34 of the annual report gives an all in cost for iron ore production which includes admin, shipping, royalties etc.
You are right that there is sustaining capital required to keep the business running (an example is replacing trucks as they come to the end of their life) and I am not clear but I think you are correct the sustaining capital spend is additional to this.
However.....and this is really important.......
In a survival scenario, FMG can survive with sale prices for its product in the USD20s. The graph below shows that in FY16 FMG had an average realised price of approximately USD45 and made EBITDA margins of USD21. So in a survival scenario (and given that FMG has zero net debt) FMG can ride out and survive seriously low prices.
Iron ore price, page-41784
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