Ann: Fenix Board Appointment, page-214

Hi Poshman,
My point is that the iron ore miners all disclose and discuss C1 cash costs. Have you seen any iron ore miner provide the detailed reconciliation to EBIT per ton hat you have calculated for Fenix?
I agree that reducing C1 cash costs is only a useful exercise if it results in greater profits. Taking your analysis as gospel, a gain per ton to NPAT (which flows into EPS) of $3.15 / ton still sounds like a good outcome to me. Especially if this is the difference between making money and losing it (which it would be if iron ore prices had stayed where they were late last year).
I am also of the view that the value of the FN deal will be what happens next in terms of growth potential it provides.
I expect the profit from acquisition is an appropriate accounting treatment and will be confirmed as such by the auditors at the full year.
Thanks for your comprehensive analysis. I hope you remain interested and keep posting here despite selling out.