FMS mgt want to revise the price of production so below is an example, first target, they can obviously do better with there vast experience in mining. . Roy Hill making $$ when I/O price is in the low $40. http://www.businessspectator.com.au/news/2016/2/2/markets/iron-ore-above-roy-hills-break-even-point
Iron ore above Roy Hill’s break-even point
• Elizabeth Redman
•
Gina Rinehart’s Roy Hill iron ore project could just eke out a profit after a jump in the price of the commodity overnight.
The price of iron ore rose by 2.4 per cent to $US42.50 a tonne overnight, consolidating last week’s modest gains.
Korean steelmaker POSCO, a partner in the Roy Hill project, has said the mine needs the price to be at least in the low $US40s to make a profit.
Last week, when the spot price was $US42.43 a tonne, POSCO said the mine would make a profit at current prices, Fairfax Media reports.
When the mine fully ramps up its production, its cost of production is expected to fall to the mid $US30s.
I/O price went up O/night
FMS Price at posting:
0.8¢ Sentiment: Buy Disclosure: Held
