No way ARI will be kept under 30c for long. ARI iron ore mining break even point is US$49.8/t IO62%. Even at current spot of US$62/t, Ari 9Mt, can generate $116m EBITDA. Should generate positive cash flow after capex. If spot recovers to US$80/t, mining will generate $299m EBITDA. Plus Consumables, steel & recycling, generating EBITDA of approx. $336m - $356m p.a Overall, ARI can generate EBITDA between $452m - $655m p.a. Break even calculation: $70.2 x (1-20%) cost reduction x 0.78 AUD / 0.88 (quality adjustment to spot price) = US$49.8/ton
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