Arrium is the cheapest Iron Ore producer after RIO and BHP.

Looking at the FY14 numbers and using the 'Underlying EBITDA' to calculate Cost of Goods sold.

It seems Arrium is the cheapest Iron ore producer after RIO and BHP.

FMG numbers are in AU$ using a exchange rate of 0.93

	Column 1	Column 2	Column 3	Column 4
0		ARI	FMG	AGO
1	AUDUSD		0.93
2	Revenue	1569	12638	1098
3	EBITDA	686	6060	248
4	Cost of Goods sold (calc: Revenue - EBITDA)	883	6577	850
5	Tonnes	12.93	124.2	10.9
6	Calculated cost / tonne AU$ (Calc : COGS / tonnes)	68.3	56.9	78.0
7
8	62% price FY14 AU$	133	133	133
9	Calculated Sold At or Realised Price  (Calc : Revenue / tonnes)	121	102	101
10	Discount to 62% Price	91.2%	77%	76%
11
12	Profit Per tonne	53	45	23

I have included  'Pellets, other ore & by products' (0.43Mt) in Arrium tonnes (12.5 + 0.43 = 12.93) as I assume FMG and AGO include this in their total tonnes. It doesn't change the conclusion/outcome if you don't. Using 12.50 tonnes just increases Cost / tonne to $70.60 (from $68.30) and increases Profit / tonne to $55 (from $53).

The writer implies no investment recommendation. This report contains material speculative in nature. Investors should seek professional investment advice. The writer owns shares in Arrium.