fmg over valued

FMG is way overvalued.  The dividend appears to disguise the level of debt  by creating a distraction and illusion.

The P/e ratio  is often  used   justify  company  value and is accepted  as a measure of value.  The problem with FMG they are on a cost cutting exercise which appears to be a measure  to stay solvent.  Cost cutting for the purpose of solvency is a dangerous game.

Cost cutting from $15.80 to $28.48 is quite a drop and too good to be true. What have they cut?
Cost cutting to this level in opinion doesn't appear credible or very creative accounting.

$US15.80 per wet metric tonne, compared to $US28.48 a tonne reported a year ago.

http://www.abc.net.au/news/2016-01-28/fortescue-cuts-costs-as-iron-ore-prices-fall/7120390

The current iron ore price and oil price  is a dead cat bounce and there will be  a lot more pain.
How will they survive when Iron ore prices fall down to $15 ton.