Exactly....$73 AUD is the credit suisse estimate of their all in price to produce IO.......at the current ex rate that is $64 USD.....so even if the spot is $77USD......thats still a margin of $13 right? plus even the doom sayers are still forecasting a USD price of $80 next year right?
Also that is the SPOT price......wouldn't they have long term fixed price futures conrtracts that they use to clear most of their sales ?
Plus what portion of their IO do they use themselves in their Steel operations vs sell to external customers?......surely they would only be exposed on what they sell out vs use themselves ?
Plus if the IO does crash further they have the option to mothball the sourtnern cross mine. Middlebank ranges mine is a high grade mine so will likely still be profitable at a lower price....
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