Yes 7.5% moisture for dmt, and the grade discount varies a lot...

Yes 7.5% moisture for dmt, and the grade discount varies a lot over time. From about 10% when times are good to up to 40% last crunch cycle. Needless to say if FMG is getting a 40% discount on an IO price of $50 then things are not good. Unfortunately the discount does tend to blow out during low IO price cycles because mills pay a premium for high grade IO to maximise margin over volume.

As I said in my post from a while ago earlier in this thread FMG has two big factors in its favour this time around, namely a higher grade product mix and no net debt. The former is at least partly responsible for the higher costs but FMG is well aware it is worth it to mitigate the discount risk which smashed them last time.

Personally I will not be surprised if IO does head back below $60, returns will obviously take a huge hit but FMG is well placed to ride it out this time.