A bit of mis interpretation of the announcement.
"Total cash costs
(CFR China)3 are targeted to reduce by 20%, from A$71/dmt4 in FY14 to an average
of A$57/dmt in FY16"
$A 57 is for the total cost do not need to take $14 us out. also quality of ore is mentioned to be higer grade once the lower grade is closed so less discount to Plats.
Based on that we need U$44 after discount to plats to break even. Ie assuming higher grade say 61% and a 10% discount to Plats, in today's market ARI would be making about U$11 a tone or A$12 once you convert having regards for the transport costs in U$ which does not benefit the price conversion to A$.
At the new rate ARI can sustain its new mining operation profitably till the IO drops to about U$55 which is still a possibility. By then we hope the A$ will be U$.60
DYOR
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