I never really understood how the DRP actually works in...

I never really understood how the DRP actually works in supporting the SP nor how many holders take up this offer.
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"You don’t have to pay any brokerage, commission, stamp duty or other transaction costs for new shares, which are automatically issued under a DRP. Your new shares will be listed on disallowed and rise or fall in value the same as other shares in the company." Commsec.
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Would this be similar to share buy back from holders with no incurring additional expenses? Don't know how this work either.

I am just wondering from the valuation of $26 ATH, was the market factoring a sustainable $200+ IOP together with the anticipated hefty dividend yield turbo charging the bulls? Either way I can see arguments along the lines of thermal/met coal and Chinese inability to cap the price rise or perhaps that was a different issue all together?

From my limited understanding of the IO market, I am just thinking aloud here so maybe we can have a discussions of what is at stake for the future. The continuing dividend yield expectation will be based on the insatiable appetite of Chinese steel producers which is a reflection of their infrastructure/property stimulus and the result of a strong economic activity within internal/external conditions. Are they currently winning in capping their steel production to drive down IOP or something else at play? I just can't see why they would drive down their economic stimulus for the purpose of controlling the IOP as the only sole benefit in the same way their big Tech faced anti-trust laws and massive structural reform in this sector (big data). One could argue unhindered rally in property both commercial/retail in China could potentially be another Evergrande and counter party risk that we experienced during the Lehman collapse.

Just thinking about Evergrande brings out another question regarding the blaze attitude from the financial markets. It isn't even seeing any counter party risks of US$300B debt an issue. Evergrande bond are only paying 27C to the $ meaning this is in default status and the group cannot use it as cash collateral!

All the producers this week are at value propositions and I don't know if the IOP crash as the early signal of a very much slowing Chinese economy or and engineered one for their ST benefit of a much lower input cost (IOP)? The thought of 2014 always comes back when IO did crash. In fact at the time I was reading that their domestic high cost producers would be wiped out just like the fracking industry when crude oil crashed.

From the chart technicals I also agree with @h00ts that this time around the break and continue fall from that key 200sma is something to be careful about. No doubt FMG would still provide better than cash in the bank yield or large cushion margins of profit but this will be relative to no dividend/loss and value will be a relative of these measure?

Just my thoughts and these are the most difficult decisions when the perceived crash are driving value down but eventually value is what one get, just like March 2020 when the whole world was going to oblivion. I must learn how to take advantage of this opportunity and timing which is the most difficult is either timing or time in the market.