er6n,
I do not think Iron Ore is going to average more than $US110 over the next few years. But I do think AUDUSD will naturally fall to mid to high 80's.
So a combination of AUDUSD in the 0.85 to 0.90 range and
Iron Ore in the $US100 to $US110 range.
Gives me my investment case for AGO.
eg
FY15 NPAT = $120m Cash Flow = $160 (after $122m capex)
assuming IO = $105 and audusd=0.88
Iron ore might average higher than $US105 which is the upside..