$5 back on the cards, page-10

FMG is always reported as being a high cost producer and that their costs are $100 mt, and that is why the market is skeptical based on a prediction of IO price falling to $100 mt

Based on their 2012 financials they sold 55.8 million tons shipped at a cost of $4,015 billion. (Page 84 of Annual Report 2012)

That equates to $72 production costs per mt .

Since then they have announced planned reduction in operating costs by $300m. Which should reduce costs further. In addition the extra volumes of production should drive costs down even further.

Why are all the analysts reporting that their cost of sales/production is $100 mt and therefore they could not sustain a drop in IO price to around $100 mt or less?

What am I missing or have miscalculated ?

Am I missing something?