Sagaro, Arrium cost of goods sold is (from FY14 Mining results...

Sagaro,

Arrium cost of goods sold is (from FY14 Mining results )...

(Revenue - EBITDA) / Tonnes = (1569 - 686) / 12.93 = AU$68.29

Stripping is another $6 / tonne so AU$74.29

AU$74.29 = US$69.46

I look at AU$74.29 = US$69.46 as the CASH cost / tonne.

Accounting DA = EBITDA - EBIT = (686 - 481) / 12.93 = AU$15.85 / T

But this is a non cash number and includes infrastructure that is built.

Even if you add COGS AU68.29 + accounting DA (AU$15.85) = AU$84.14 or US$78.68

ALSO and this is really important Arrium has a much higher grade and gets a much higher % of the 62%fe price than others. So costs / tonne is only half of the calculation. You have also factor that in.